Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p28
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 28/34)
Character Range: 85568–88558

where trusts are not known to the law; and
                     (ii) it is reasonable for the property to be held in accordance with the law in that place;
                  (b) where both of the following apply:
                     (i) the client portfolio assets are located in a place outside of this jurisdiction and it is not reasonable for the assets to be held on trust in accordance with the law in that place;
                     (ii) the external MDA custodian has documented in writing that it is satisfied that the property is held in a manner that, having regard to the relevant laws, provides reasonably effective protection in case of insolvency of the foreign asset holder and the basis on which the external MDA custodian is satisfied.

                  912AFC  Financial Service Guide for custody service
              Before providing custodial or depository services to a person as a retail client for a MDA service, the external MDA custodian must provide to the person a Financial Services Guide for its custodial or depository services that clearly explains the services for which it is responsible and for which the MDA provider is responsible.

                  912AFD Record keeping
           The external MDA custodian must keep:
                  (a) each contract it enters into under subsection 912AFA(1) for at least 7 years after the contract is terminated; and
                  (b) any Financial Services Guide given to a person under section 912AFC together with records showing to whom and when the Financial Services Guide was given for at least 7 years after the financial services to which the guide relates were last provided.

                  912AFE Insurance requirements
              The external MDA custodian must maintain at all times professional indemnity insurance and insurance covering fraud by its officers and employees that:
                  (a) is adequate having regard to the nature of the activities carried out by the external MDA custodian in relation to MDA services; and
                  (b) covers claims at the same time amounting in aggregate to the lesser of:
                     (i) $5 million; or
                     (ii) the aggregated average value of the client portfolio assets of all people to whom it provided custodial or depository services as retail clients for a MDA service during a 12 months period ending no more than one month previously or, if it has not been providing custodial or depository services for a MDA service for 13 months, the amount that it reasonably estimates will be the aggregated average value of the client portfolio assets of all persons to whom it will provide custodial or depository services as retail clients during the first 12 months for which it provides those services for a MDA service.
                  912AG  Interpretation

              (1) In this section and in sections 912AE to 912AFE, a document is given to a person only when:
                  (a) it is