Document ID: chunk:federal_register_of_legislation:F2024L00374:body:0:p2
Version: federal_register_of_legislation:F2024L00374
Segment Type: other
Provision Reference: 
Character Range: 2654–5470

assets that include how the instructions are given and reasonable controls to ensure that the instructions are properly authorised and carried out; and
(c) do all things necessary to ensure that a custodian that holds scheme property:
(i) as far as practicable identifies the property or assets as held on behalf of the responsible entity in relation to the scheme; and
(ii) holds the property or assets separately from property in which the responsible entity or the custodian has an interest and from the property of any other person or scheme except where the responsible entity is exempted from holding the property separately under section 601QA and complies with the conditions of the exemption.
(2) The responsible entity must do all things necessary to ensure that the custodian or, if there is no custodian in relation to particular scheme property or assets that are not held by a member, the responsible entity:
(a) has an organisational structure that supports compliance with paragraph (1)(c)(ii) or subparagraph 601FC(1)(i)(ii) (as applicable); and
(b) segregates custodial staff from persons performing other functions, in a way that minimises the potential for conflict, if a conflict of interest exists or might arise between:
(i) their duties as custodial staff; and
(ii) the interests served or advanced by persons who perform duties to make investment decisions, trading decisions or other discretionary decisions resulting in the transfer or disposal of scheme property or assets other than discretionary decisions in relation to holding a deposit account with a corporation that is regulated for the taking of deposits where the balance of the deposit account is payable on demand and discretionary decisions relating to buying or selling foreign currency; and
(c) has a documented policy that is:
(i) approved by its directors or governing body, or a senior manager authorised to give approval on behalf of the directors or governing body or, in the case of a custodian that is a foreign company that is carrying on business in this jurisdiction or registered under Division 2 of Part 5B.2, its most senior officer or employee in this jurisdiction with responsibility for managing the functions performed by custodial staff; and
(ii) designed to ensure that custodial staff are not influenced because of a conflict mentioned in paragraph (b) to act other than in accordance with their duties; and
(d) undertakes reasonable checks to find out and document if there has been any attempt to inappropriately influence custodial staff and take reasonable action in the event this happens; and
(e) structures its business so that:
(i) custodial staff can report to the directors of the responsible entity or the compliance committee for the scheme directly or through other custodial staff; and
(ii)