Document ID: chunk:federal_register_of_legislation:F2024L00374:body:0:p4
Version: federal_register_of_legislation:F2024L00374
Segment Type: other
Provision Reference: 
Character Range: 7872–10580

the responsible entity to do all things necessary to ensure that the sub-custodian does a particular thing.
Note:  For example, if the custodian engaged a sub-custodian, the responsible entity would need to do all things necessary to ensure that the requirements of paragraph (1)(c) and subsections (2) and (3) were satisfied in relation to the custodian, the sub-custodian and their custodial staff, subject to the exception in relation to assets outside this jurisdiction.
(5) The responsible entity must keep for 7 years records demonstrating how it complies with subsections (1) to (4).
(6) If:
(a) a custodian is appointed to hold scheme property or assets that had previously been held by the responsible entity; or
(b) a custodian or the responsible entity commences to hold scheme property or assets that had been held by a custodian;
the responsible entity must obtain a report from a person with relevant knowledge who is not a related party of the custodian or the responsible entity confirming that all property and assets to be transferred have been identified and transferred as required unless it reasonably believes that it is not in the best interests of members to do so, and if the report is not obtained, keep for 7 years a record in writing as to its grounds for that belief.
(7) The responsible entity must set out in writing and implement a reasonable process to monitor and assess any custodian's performance of its obligations as a custodian and do all things necessary to ensure that a custodian it engages sets out in writing and implements a reasonable process to monitor and assess the performance of its obligations by any sub-custodian.
(8) The responsible entity must not permit a custodian or a sub-custodian to be involved in discretionary decisions concerning a deposit account, unless the responsible entity is satisfied that the custodian or sub-custodian has set out in writing and implements reasonable processes for:
(a) determining which account to use; and
(b) monitoring performance by the issuer of the account of the issuer's obligations in relation to that account; and
(c) taking action in case of failure of the issuer of the account of the issuer's obligations in relation to that account.
(9) The responsible entity must ensure that it keeps records of scheme property and assets in a way that enables the holding of the property and assets to be conveniently and properly audited by the auditor of the scheme and do all things necessary to ensure that any custodian or sub-custodian keeps such records in relation to any property or asset that the custodian holds or that is held by the sub-custodian.
(10) The responsible entity must set out in writing and