Document ID: chunk:federal_register_of_legislation:F2024L00375:body:0:p5
Version: federal_register_of_legislation:F2024L00375
Segment Type: other
Provision Reference: 
Character Range: 10365–13286

resulting in the transfer or disposal of custodial property 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 transactions in foreign currency are located sufficiently separately during the performance of their duties to reduce, so far as reasonably practicable, the risk of inappropriate influence on decisions relating to holding of custodial property.
(8) The financial services licensee must ensure that:
(a) custodial staff have the knowledge and skills necessary to perform their duties properly; and
(b) ongoing training and educational programs are provided to custodial staff that provide reasonable assurance to the financial services licensee that the custodial staff have knowledge that remains at a level necessary for performing their duties including knowledge of a financial services licensee's obligations under this Part to the extent relevant to enable the custodial staff to perform their particular duties; and
(c) custodial staff have the necessary time and authority to perform their duties as custodial staff; and
(d) resources are made available to custodial staff to the extent necessary for them to adequately perform their duties as custodial staff.
(9) The financial services licensee must do all things necessary to ensure that subsections (7) to (8) are complied with by any person engaged directly or indirectly by the financial services licensee to hold custodial property as if the person were the licensee and those subsections applied to the person as the licensee, except to the extent that, in relation to assets outside this jurisdiction, it is not reasonably practicable for the financial services licensee to do all things necessary to ensure that the person does a particular thing.
(10) The financial services licensee must keep for 7 years records demonstrating how it complies with subsections (2) to (9).
(11) If the financial services licensee engages a sub-custodian, the financial services licensee must set out in writing and implement a reasonable process to monitor and assess the sub-custodian's performance of its obligations as a sub-custodian and do all things necessary to ensure that the sub-custodian sets out in writing and implements a reasonable process to monitor and assess the performance of obligations of any person directly or indirectly engaged by the sub-custodian to hold custodial property.
(12) The financial services licensee must do all things necessary to ensure that if it or a person it directly or indirectly engages to hold custodial property is involved in discretionary decisions concerning a deposit account, the licensee or that person has set out in writing and implements reasonable processes for:
(a) determining which account to use; and
(b)