Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p13
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 13/34)
Character Range: 44730–47690

in the place where the property is located to reconcile property of that kind less frequently, as frequently as would be performed in accordance with that practice; and
                  (e) not holding the client portfolio assets separately does not restrict the ability of the licensee to exercise its powers in relation to the client portfolio assets in accordance with its duties, including in relation to voting rights; and
                  (f) if the property that includes the client portfolio assets is not sufficient to meet the entitlements of all persons in relation to that property, the insufficiency ceases by the second business day after the insufficiency arises, whether through the provision of additional property by the licensee or otherwise.
              (7) The licensee must do all things necessary to ensure that if it holds client portfolio assets, it, and if a custodian holds those assets, the custodian, has an organisational structure that supports compliance with paragraph (5)(b).
              (8) The licensee must do all things necessary to ensure that if it holds client portfolio assets, it, and if a custodian holds those assets, the custodian, segregates custodial staff from staff performing other functions in a way that minimises the potential for conflict, if a conflict of interest exists or might arise between:
                  (a) their duties as custodial staff; and
                  (b) 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 client portfolio 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 acquisition or disposal of foreign currency.
              (9) The licensee must do all things necessary to ensure that if it holds client portfolio assets, it, and if a custodian holds the client portfolio assets, the custodian, has a documented policy that is:
                  (a) 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 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 of custodial staff; and
                  (b) designed to ensure that custodial staff are not influenced because of a conflict mentioned in subsection (8) to act other than in accordance with their duties.
              (10) The licensee must do all things necessary to ensure that if it holds client portfolio assets, it, and if a custodian holds those assets, the custodian, undertake reasonable checks to find