Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:8:p26
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 8 (pt 26/41)
Character Range: 697773–700426

staff; and
 (iii) compliance processes to ensure that the controls are effective (for example, reporting procedures, internal and external audits and staff management procedures); and
 (d) the investment to which the charge relates is made in accordance with the derivatives risk statement.
 (1A) A charge complies with this subregulation if it is given in order to comply with a requirement, in either of the following, that the performance of obligations in relation to the derivative be secured:
 (a) rules governing the operation of an approved body (as defined in subregulation (2));
 (b) a law of the Commonwealth, a State, a Territory or a foreign country (including a part of a foreign country) that applies to dealings in the derivative.
 (1B) A charge complies with this subregulation if:
 (a) it is given in favour of the agent; and
 (b) the agent enters into an arrangement that is a derivative on behalf of, on the instructions of, on account of or for the benefit of the trustee; and
 (c) the agent is obliged under either of the following to keep the property of the trustee separate from the property of the agent:
 (i) rules governing the operation of an approved body (as defined in subregulation (2));
 (ii) a law of the Commonwealth, a State, a Territory or a foreign country (including a part of a foreign country) that applies to dealings in the derivative; and
 (d) the agent is under an obligation, or but for a netting‑off would be under an obligation, to transfer property to another entity in relation to the derivative; and
 (e) the charge is given over an asset or assets of the fund, to secure the performance of an obligation or obligations in relation to the derivative.
 (1C) A charge complies with this subregulation if:
 (a) the asset over which the charge is given is financial property; and
 (b) the obligations secured by the financial property are any of the following:
 (i) an obligation of the trustee that relates to the derivative;
 (ii) an obligation of the trustee to pay interest on an obligation covered by subparagraph (i);
 (iii) an obligation of the trustee to pay costs and expenses incurred in connection with enforcing a charge given in respect of an obligation covered by subparagraph (i) or (ii); and
 (c) the financial property is transferred or otherwise dealt with so as to be in the possession or under the control of:
 (i) the secured person; or
 (ii) another person (who is not the trustee), on behalf of the secured person, under the terms of an arrangement evidenced in writing.
 (1D) For the purposes of paragraph (1C)(c), financial property is taken not to be in the possession or control