Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p14
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 14/34)
Character Range: 47436–50539

act other than in accordance with their duties.
              (10) The licensee must do all things necessary to ensure that if it holds client portfolio assets, it, and if a custodian holds those assets, the custodian, undertake reasonable checks to find out and document if there has been any attempt to inappropriately influence custodial staff and take reasonable action in the event this happens.
              (11) The licensee must do all things necessary to ensure that if it holds client portfolio assets, it, and if a custodian holds those assets, the custodian, structure its business so that:
                  (a) custodial staff can report to the licensee if the licensee is a natural person or otherwise the directors or governing body 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 or employee of the licensee or the custodian in this jurisdiction or the jurisdiction in which the licensee or 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 or disposal of the client portfolio assets, 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; and

                  (c) custodial staff and persons involved in investment decisions, trading decisions or other discretionary decisions resulting in the transfer or disposal of the client portfolio assets 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 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 those assets.
              (12) The licensee must, for its custodian 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 section to the extent relevant to enable the