Document ID: chunk:federal_register_of_legislation:F2024C00757:reg:1:p6
Version: federal_register_of_legislation:F2024C00757
Segment Type: reg
Provision Reference: reg 1 (pt 6/22)
Character Range: 59655–62652

rights arising from accessible investments; and
       (c) if the client may give directions about exercising voting rights:
           (i) require that the licensee will only vote when, and as, instructed by a client, including under a standing instruction; and
           (ii) require that clients are given any information relating to proposed company or managed investment scheme resolutions that is made available to the licensee or a custodian acting on its behalf as soon as practicable; and
           (iii) identify how such information will be given to clients; and
           (iv) identify the steps that will be taken once voting instructions have been communicated by a client to the licensee; and
           (v) identify whether any cost will be charged to the client for exercising the voting rights; and
       (d) if the client is not able to give directions about exercising voting rights, requires that the licensee may not exercise any voting rights in respect of accessible investments.
Agreement with Person Performing Transactional Functions of the IDPS
    (40) If the licensee appoints another person (administrator) to perform the transactional functions of the IDPS, the licensee must ensure that at all times a written agreement is in place between the licensee and the administrator that clearly specifies:
       (a) the nature of the arrangement and the obligations of each party; and
       (b) the rights that the licensee will have in relation to ongoing review and monitoring of the administrator and the standards against which the administrator's performance will be assessed; and
       (c) how instructions will be given by:
           (i) the licensee to the administrator; and
           (ii) where the administrator is not the custodian—by the administrator to the custodian; and
        1.           how clients will be compensated by the administrator if the clients suffer any loss due to a failure by the administrator to comply with its duties under its agreement with the licensee and the extent to which the administrator must maintain a minimum level of professional indemnity insurance; and
        2.           how records of the IDPS will be kept and maintained by the administrator; and
        3.            requirements for reporting by the administrator to the licensee, including notifications of any transfers to, or from, the IDPS's accounts; and
        4.           requirements for the administrator to provide all reasonable access and assistance to any registered company auditor engaged to conduct an audit in relation to the IDPS.
Arranging for another person to hold IDPS property
    (40A) A licensee that engages a custodian to hold IDPS property must ensure that:
       (a) if the licensee holds a beneficial interest in the IDPS property on behalf of the relevant client or clients, it has a written agreement with the custodian that meets the requirements of paragraphs (c) to (e) except:
           (i) to the extent that,