Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p15
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 15/34)
Character Range: 50272–53278

are provided to custodial staff that provide reasonable assurance that they have knowledge that remains at a level necessary for performing their assigned duties including knowledge of the licensee's obligations under this section to the extent relevant to enable the custodial staff to perform their particular duties; and
                  (c) custodial staff have the necessary time and authority to perform their duties as custodial staff; and
                  (d) resources are made available to custodial staff to the extent necessary for them to adequately perform their duties as custodial staff.
              (13) The licensee must also comply with subsections (7) to (12) as if any sub-custodian were the custodian, except to the extent that, in relation to client portfolio assets outside this jurisdiction, it is not reasonably practicable for the licensee to do all things necessary to ensure that the sub-custodian does a particular thing.

              Note: For example, if the custodian engaged a sub-custodian, the licensee would need to do all things necessary to ensure that the requirements of subsections (7) to (12) were satisfied in relation to the custodian, the sub-custodian and their custodial staff, subject to the exception in relation to assets outside this jurisdiction.
              (14) The licensee must keep for 7 years records demonstrating how it complies with subsections (2) to (13).
              (15) The licensee must set out in writing and implement a reasonable process:
                  (a) for determining if it should hold client portfolio assets or engage a custodian to do so, unless either choice is determined by its contractual obligations, and if it is to engage a custodian which person will be the custodian and on what terms; and
                  (b) to monitor and assess any custodian's performance of its obligations as a custodian and do all things necessary to ensure that a custodian it engages sets out in writing and implements a reasonable process to monitor and assess the performance of its obligations by any sub-custodian.

              The process for paragraph (a) must involve the application of a reasonable written policy:

                  (c) approved by the 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
                  (d) which addresses potential conflict of interests and other considerations relevant to the interests of each client.
              (16) The licensee must not permit a custodian or a sub-custodian to be involved in discretionary decisions concerning a deposit account unless the licensee is satisfied that the custodian or sub-custodian has set out in writing