Document ID: chunk:federal_register_of_legislation:C2004A01287:clause:1_29h
Version: federal_register_of_legislation:C2004A01287
Segment Type: clause
Provision Reference: sch 1 cl 29H
Character Range: 54245–56461

29H  Contents of risk management strategies

 (1) A risk management strategy must set out reasonable measures and procedures that a body corporate or group of individual trustees is to apply to identify, monitor and manage risks that arise:
 (a) in relation to its activities, or proposed activities, as an RSE licensee; and
 (b) in relation to all its other activities, or proposed activities, to the extent that they are relevant to its activities, or proposed activities, as an RSE licensee.

 (2) Without limiting subsection (1), the risk management strategy of a body corporate or group of individual trustees must set out:
 (a) reasonable measures and procedures that the body or group is to apply to identify, monitor and manage:
 (i) the risks associated with governance and decision‑making processes; and
 (ii) the risks that arise as a result of entering into outsourcing arrangements (other than arrangements that relate only to a particular registrable superannuation entity); and
 (iii) the risks arising from any changes to the RSE licensee law; and
 (iv) the risks of potential fraud and theft; and
 (b) the circumstances in which an audit of the risks referred to in this section is to be undertaken; and
 (c) such other matters as are prescribed by regulations made for the purposes of this paragraph.

 (3) The risk management strategy must be signed:
 (a) if it is the risk management strategy of a body corporate—by the body; or
 (b) if it is the risk management strategy of a group of individual trustees—by each member of the group.

Note: An RSE licence will not be granted unless there is a risk management strategy that meets the requirements of this section: see paragraph 29D(1)(e).

 (4) The risk management strategy must not by reference incorporate provisions of any other document unless that other document is available, without charge, to members of the public.

 (5) A risk management strategy does not fail to comply with this section merely because it reproduces information contained in the risk management plan for an entity of which an applicant for an RSE licence is, or proposes to be, the RSE licensee.

Subdivision B—Maintaining and reviewing risk management strategies