Document ID: chunk:federal_register_of_legislation:F2024L00375:body:0:p4
Version: federal_register_of_legislation:F2024L00375
Segment Type: other
Provision Reference: 
Character Range: 7778–10616

other discretionary decisions 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 buying or selling foreign currency; and
(c) have 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 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
(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) undertake 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) structure its business so that:
(i) custodial staff can report, directly or through other custodial staff, to the client if the client is a natural person or otherwise to the directors or the governing body of the client or, where the client is a foreign company, the most senior officer or employee of the client in this jurisdiction with duties that relate to the assets in relation to which the custodial staff perform functions; and
(ii) the duties of:
(A) direct managers of custodial staff; and
(B) indirect managers of custodial staff that are not the most senior officer or employee of the financial services licensee in this jurisdiction, or a jurisdiction in which the custodial property is located; and
(C) custodial staff;
do not extend to other functions that may create conflicts of interest, including that custodial staff and those managers are not responsible for investment decisions, trading decisions or other discretionary decisions 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; and
(iii) custodial staff and persons involved in investment decisions, trading decisions or other discretionary decisions 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