Document ID: chunk:federal_register_of_legislation:F2024L00375:body:0:p9
Version: federal_register_of_legislation:F2024L00375
Segment Type: other
Provision Reference: 
Character Range: 20869–23670

with its agreement with its client; and
(i) to the effect that the sub-custodian will provide the financial services licensee with written notice of and contact information of any other person holding custodial property or to be engaged by the sub-custodian to hold custodial property:
(i) as soon as reasonably practicable; and
(ii) in any event before the assets are held, except in exceptional circumstances identified in the agreement; and
(j) to the effect that the financial services licensee may terminate the agreement without:
(i) payment other than in relation to entitlements previously accrued or the reasonable expenses involved in transfer of the assets to the financial services licensee or another sub-custodian; and
(ii) limiting any right to damages the financial services licensee may have under the agreement, including recovering expenses referred to in subparagraph (i) if the sub-custodian is in breach;
if the financial services licensee has reasonable grounds for believing that:
(iii) there is or has been an act or omission of the sub-custodian or any other person engaged directly or indirectly by the sub-custodian to hold custodial property that results in the sub-custodian being in breach of the agreement; and
(iv) as a result of the act or omission, to a material extent the sub-custodian or any other person engaged directly or indirectly by the sub-custodian is not complying with or is unlikely to comply with the requirements that the financial services licensee must do all things necessary to ensure under subsections 912AAC(5) to (9), (11) and (13) are met by the sub-custodian or the person in relation to custodial property held by the sub-custodian or that the sub-custodian arranged to be held, having regard to any remedy provided or that may be expected to be provided by the sub-custodian or the person; and
(k) to the effect that on termination of the engagement, the custodial property must be transferred to the persons for whom the custodial property is held or as they direct 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 sub-custodian and any costs of the transfer; and
(l) to the effect that the sub-custodian must notify material or systemic breaches of the agreement by it or by the financial services licensee in writing to the financial services licensee within a reasonable time of becoming aware of the breach; and
(m) specifying the terms on which the sub-custodian is authorised to engage another person to hold the custodial property to which the agreement relates and providing that any such engagement must be either:
(i) under a written agreement meeting the requirements of subsections (2) to (4) (including