Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p19
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 19/34)
Character Range: 61287–64191

complying with or is unlikely to comply with the requirements that the licensee must do all things necessary to ensure under subsections (5) to (13), paragraph (15)(b) and subsection (17) are met by the custodian or the sub-custodian in relation to client portfolio assets held by the custodian or that the custodian arranged to be held, having regard to any remedy provided or that may be expected to be provided by the custodian or the sub-custodian; and
                     (xi) to the effect that on termination of the engagement, client portfolio assets must be transferred to the licensee or as the licensee directs within a reasonable period, subject to reasonable provisions for the obligations of the parties at termination, including the payment of outstanding fees and charges to the custodian and any costs of the transfer; and
                     (xii) to the effect that the custodian must notify material or systemic breaches of the agreement by it or by the licensee in writing to the licensee within a reasonable time of becoming aware of the breach; and
                     (xiii) specifying the terms on which the custodian is authorised to engage another person to hold client portfolio assets to which the agreement relates and providing that any such engagement must be either:
                         (A) under a written agreement meeting the requirements of paragraphs (c) to (e) (including this sub-subparagraph and sub-subparagraph (B)) as if the person engaged were the custodian and the custodian were the licensee except to the extent that, in relation to assets held outside of this jurisdiction, the custodian has provided written reasons to the licensee as to why it reasonably considers that it is not practicable to engage a person that is willing to include such matters in the agreement; or
                         (B) an arrangement with a related body corporate of the custodian, where the custodian has a written agreement with the licensee that it is liable to the licensee for the acts and omissions of the related body corporate as if those acts and omissions were the acts or omissions of the custodian; and
                     (xiv) to the effect that the custodian must establish and maintain business continuity arrangements that are reasonable for a business of the nature, scale and complexity of the custodian's business; and
                     (xv) to the effect that the custodian must not disclose any confidential information relating to client portfolio assets, apart from any disclosure to ASIC or as required or permitted by law or by the licensee in writing; and
                  (d) the agreement with the custodian has reasonable liability provisions and does not include provisions that exclude the liability of the custodian for direct loss that it would have if the exclusion were not included except in particular circumstances that