Document ID: chunk:federal_register_of_legislation:F2024L00375:body:0:p6
Version: federal_register_of_legislation:F2024L00375
Segment Type: other
Provision Reference: 
Character Range: 13022–15842

directly or indirectly engages to hold custodial property is involved in discretionary decisions concerning a deposit account, the licensee or that person has set out in writing and implements reasonable processes for:
(a) determining which account to use; and
(b) monitoring performance by the issuer of the account of the issuer's obligations in relation to that account; and
(c) taking action in case of failure by the issuer of the account of the issuer's obligations in relation to that account.
(13) The financial services licensee must keep records of custodial property it holds in a way that enables the holding of the custodial property by the licensee to be conveniently and properly audited by an auditor acting for the client and do all things necessary to ensure that such records are kept in relation to custodial property that is held by a person it directly or indirectly engages.
(14) The financial services licensee must:
(a) review the appropriateness of the written processes that exist to comply with subsection (11) and if applicable subsection (12) at least once in every 13 months; and
(b) as directed by ASIC in writing, arrange for a report on the effectiveness of or the reasonableness of any of the processes to be prepared and given to ASIC.
The written direction may specify who is to prepare the report and the time by which it must be given to ASIC.
(15) A financial services licensee that complies with this section is taken to comply with conditions (if any) of its Australian financial services licence that refers to ASIC Policy Statement 133 or ASIC Regulatory Guide 133 as applying on a certain date.
(16) In this section and in sections 912AAD and 912AAE:
custodial property means a financial product or a beneficial interest in a financial product that is held in providing a custodial or depository service; and
custodial staff means, in relation to a financial services licensee, natural persons who under an arrangement with the licensee have duties relating to holding custodial property, record keeping relating to custodial property, checking authorisations for instructions to transact in custodial property or functions incidental to these functions other than making 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.
sub-custodian means, in relation to a financial services licensee, a person the licensee engages to hold custodial property.
(17) For the purposes of this section and sections 912AAD and 912AAE: