Document ID: chunk:federal_register_of_legislation:F2023L01162:body:0:p5
Version: federal_register_of_legislation:F2023L01162
Segment Type: other
Provision Reference: 
Character Range: 10204–12879

licensee authorised to provide custodial or depository services and was not an incidental provider;
              (7A) Paragraph (7)(b) does not apply in relation to a custodian that has not previously provided a copy of a report to any person for the purposes of paragraph (7)(b) until the earlier of:
(a) 16 months after the date that the custodian first became a custodian of the scheme, IDPS or retail CCIV; and
(b) the date that the custodian first provides the licensee or any other person with a copy of a report for the purposes of paragraph (7)(b).
              (7B)  The first report obtained by a licensee or retail CCIV for the purposes of paragraph (7)(b) may cover a period of less than 12 months if it covers the period from the date that the custodian first provided a written assurance under paragraph (7)(a) to the licensee or any other person.
(8) The licensee must hold at all times:
(a) in cash or cash equivalents in an amount that is at least the greater of:
(i) $150,000; and
(ii) 50% of the amount of NTA that it is required to hold under subsection (4); and
(b) liquid assets in an amount that is at least 100% of the required NTA.
Money that is in an account held by the licensee for the purposes of section 981B cannot be counted towards either requirement. Other cash or cash equivalents that are also liquid assets can be counted for both paragraph (a) and (b).
Audit opinion on financial requirements
(9) The licensee must lodge with ASIC a report (audit opinion) by a registered company auditor addressed to the licensee and ASIC for each financial year of the licensee that states whether:
(a) in the auditor's opinion, the licensee:
(i) complied with paragraph (3)(b) and subsections (4) and (8) and other financial requirements in conditions on its licence; and
(ii) had at all times a projection that purports to, and appears on its face to, comply with paragraph (3)(a); and
(iii) correctly calculated the projection in paragraph (3)(a) on the basis of the assumptions the licensee used for the projection; and
(b) the auditor has no reason to believe that:

(i) the licensee did not have adequate systems for managing the risk of having insufficient financial resources to comply with subsections (4) and (8) and other financial requirements in conditions on its licence; or

                         Note: Paragraph 912A(1)(h) requires a licensee (other than a body regulated by APRA) to have adequate risk management systems.

(ii) the licensee failed to comply with paragraph (3)(c); or

(iii) the licensee will not have access when needed to enough financial resources to meet its liabilities over the projected term of at least the