Document ID: chunk:federal_register_of_legislation:F2024L00374:body:0:p6
Version: federal_register_of_legislation:F2024L00374
Segment Type: other
Provision Reference: 
Character Range: 12896–15631

person directly or indirectly engaged by a custodian to hold scheme property or assets.
(14) For the purposes of this section and section 601FCAB:
(a) a person (first person) engages another person if the first person engages or authorises the other person; and
(b) a person (first person) indirectly engages another person (second person) if:
(i) the first person engages a person and that person engages the second person; or
(ii) a person who is indirectly engaged by the first person under subparagraph (i) or this subparagraph (ii) engages the second person.
           601FCAB Arranging for another person to hold scheme property or assets
(1) A responsible entity that engages a custodian to hold scheme property or assets on behalf of the responsible entity must:
(a) ensure that it has a written agreement with the custodian that meets the requirements of subsections (2) to (5); and
(b) do all things necessary to ensure that the custodian has a written agreement with each person that the custodian engages to hold the scheme property or assets and the written agreement meets the requirements of subsections (2) to (5) (but not including paragraph (2)(p)) as if the person were the custodian and the custodian were the responsible entity except:
(i) to the extent that, in relation to scheme property or assets held outside of this jurisdiction, the responsible entity holds documents that demonstrate that it is not reasonably practicable to engage another person to hold the scheme property or assets who is willing to include such matters in the agreement; or
(ii) where the person is controlled by the custodian the custodian is liable to the responsible entity for the acts and omissions of the person as if they were the acts or omissions of the custodian.
(2) The agreement with the custodian must have provisions:
(a) specifying reasonable rights that the responsible entity has for the ongoing review and monitoring of the custodian and any sub-custodian and the standards against which their performance will be assessed; and
(b) to the effect that the custodian must certify to the responsible entity in writing at least every 13 months that the custodian believes on reasonable grounds that the custodian and each sub-custodian have met since the date of the previous statement in writing or the commencement of the agreement, and the custodian has no reason to believe that the custodian and each sub-custodian will not continue to meet:
(i) in the case of the custodian, the terms of the agreement; and
(ii) in any case, the requirements that the responsible entity must do all things necessary to ensure under paragraph 601FCAA(1)(c) and subsections 601FCAA(2) to (4), (7) and (9) are met by the custodian or