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ASIC Corporations (Custody Standards for Providers of Custodial and Depository Services) Instrument 2024/17
I, Kate Metz, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date 21 March 2024

Kate Metz

Contents

Part 1—Preliminary
1 Name of legislative instrument
2 Commencement
3 Authority
Part 2—Declaration
4 Minimum standards for holding custodial property
Part 3—Repeal
5 Repeal

Part 1—Preliminary

1 Name of legislative instrument
This is the ASIC Corporations (Custody Standards for Providers of Custodial and Depository Services) Instrument 2024/17.

2 Commencement
This instrument commences on the day after it is registered on the Federal Register of Legislation.
Note: The register may be accessed at www.legislation.gov.au.

3 Authority
This instrument is made under paragraph 926A(2)(c) of the Corporations Act 2001.

Part 2—Declaration

4 Minimum standards for holding custodial property
Part 7.6 (other than Divisions 4 and 8) of the Act applies in relation to a financial services licensee as if it were modified or varied by, in the appropriate position in Division 3 of that Part, inserting:
           "912AAC Minimum standards for providers of custodial or depository services
(1) This section applies to a financial services licensee that is authorised to provide a custodial or depository service.
(2) The financial services licensee must do all things necessary to ensure that:
(a) custodial property it holds is held on trust for its client unless the custodial property is held under Division 2 or 3 of Part 7.8; and
(b) any custodial property held by a person the financial services licensee directly or indirectly engages is held on trust unless the custodial property is held under Division 2 or 3 of Part 7.8; and
(c) where the custodial property is held in providing a custodial or depository service on the financial services licensee's behalf, the custodial property is held on trust for the financial services licensee unless the custodial property is held under Division 2 or 3 of Part 7.8.
(3) Subsection (2) does not apply where any of the following apply:
(a) where both of the following apply:
(i) the property is located in a place outside of this jurisdiction where trusts are not known to the law; and
(ii) it is reasonable for the property to be held in accordance with the law in that place;
(b) where both of the following apply:
(i) the property is located in a place outside of this jurisdiction and it is not reasonable for the property to be held on trust in accordance with the law in that place;
(ii) the financial services licensee has documented in writing that:
(A) it is satisfied that the property is held in a manner that, having regard to the relevant laws, provides reasonably effective