Document ID: chunk:federal_register_of_legislation:F2023C00839:body:0:p12
Version: federal_register_of_legislation:F2023C00839
Segment Type: other
Provision Reference: 
Character Range: 27491–30159

the discretion will be so exercised and identify the nominee; and
(c) in relation to each discretion for which a documented policy has been set—explain why it is reasonable to exercise the discretion in accordance with the policy; and
(d) without limiting paragraph (c), if the exercise of the discretion in accordance with the documented policy would not be consistent with scheme property being valued in accordance with ordinary commercial practice (see subsection (6))—explain why it is impracticable to do so.
(8) When the responsible entity exercises a discretion:
(a) in relation to which there is no documented policy that is current at the time of exercise; or
(b) in a way that involves a departure from the documented policy relating to the discretion that is current at the time of exercise,
they must prepare a document which sets out:
(c) the date on which the discretion is exercised;
(d) if the discretion is exercised by a nominee – a statement to that effect which identifies the nominee;
(e) how the discretion is exercised;
(f) an explanation why it was reasonable to exercise the discretion the way it was exercised; and
(g) without limiting paragraph (f), if they do not exercise the discretion in a way which is consistent with scheme property being valued in accordance with ordinary commercial practice (see subsection (6))—an explanation why it is impracticable to do so.
(9) The responsible entity must ensure that the records which it keeps under section 988A are kept in such a way as will enable:
(a) any documented policy that was applied in the exercise of the discretion; and
(b) any exercise of a discretion of a kind covered by subsection (8);
that relates to the withdrawal of a member to be identified.
(10) The documented policy relating to a discretion of the kind referred to in subsection (1) must:
(a) not involve the creation of another discretion of that kind; and
(b) be the only policy applicable to the exercise of the discretion at any one time.

       Access to and retention of documents

(11) The responsible entity must:
(a) retain the documents covered by subsections (7) and (8) for 7 years after they cease to be current; and
(b) give a copy of the documents referred to in paragraph (a) to the following persons on request at no charge:
(i) a member of the scheme;
(ii) a person who has been or should have been given, or who has obtained, the Product Disclosure Statement for an interest in the scheme.
Note: A Product Disclosure Statement for such interests must indicate that these documents are available on request: subsection 1013D(2B).".

6 Statements to be included in Product Disclosure Statement
Under