Document ID: chunk:federal_register_of_legislation:F2024C00757:reg:1:p13
Version: federal_register_of_legislation:F2024C00757
Segment Type: reg
Provision Reference: reg 1 (pt 13/22)
Character Range: 77924–80939

there has been any attempt to inappropriately influence custodial staff and take reasonable action in the event this happens.
    (40I) The licensee must do all things necessary to ensure that it and any custodian it engages to hold IDPS property structures its business so that:
       (a) custodial staff can report to the directors of the licensee directly or through other custodial staff; and
       (b) the duties of:
           (i) direct managers of custodial staff; and
           (ii) indirect managers of custodial staff that are not the most senior officer of the licensee or the most senior officer or employee of the custodian in this jurisdiction or, for a custodian, the jurisdiction in which the custodian is based; and
           (iii) 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 of disposal of IDPS 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 and selling foreign currency; and
        1.           custodial staff and persons involved in investment decisions, trading decisions or other discretionary decisions resulting in the transfer or disposal of IDPS 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 and selling foreign currency are located sufficiently separately during the performance of their duties to reduce, so far as reasonably practicable, the risk of inappropriate influence on decisions relating to holding of IDPS property.
    (40J) The licensee must, for its custodial staff ensure that, and for custodial staff of any custodian do all things necessary to ensure that the custodian ensures that:
       (a) custodial staff have the knowledge and skills necessary to perform their duties properly; and
       (b) ongoing training and educational programs 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 Part 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.
    (40K) The licensee must:
       (a) if the licensee has engaged a custodian, also comply