Document ID: chunk:federal_register_of_legislation:F2023C01018:reg:6:p4
Version: federal_register_of_legislation:F2023C01018
Segment Type: reg
Provision Reference: reg 6 (pt 4/15)
Character Range: 38404–41199

approach to:
(a) protect public trust and confidence; and
(b) protect the assets of the registered entity; and
(c) ensure that the registered entity continues to operate in a manner that is sustainable and consistent with its purposes.

Standard
 (2) A registered entity must not engage in conduct, or omit to engage in conduct, if the conduct or omission may be dealt with:
 (a) as an indictable offence under an Australian law (even if it may, in some circumstances, be dealt with as a summary offence); or
 (b) by way of a civil penalty of 60 penalty units or more.
Note 1: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.
Note 2: Governance standard 3 does not extend Australian law to overseas jurisdictions. An Australian law may already extend to an overseas jurisdiction by other means.
Note 3: While a registered entity must comply with all Australian laws, a serious infringement of an Australian law covered by governance standard 3 may allow the Commissioner to exercise their enforcement powers under Part 4‑2 of the Act, following consideration of the matters mentioned in subsection 35‑10(2) of the Act.

45.20  Governance standard 4—Suitability of responsible entities

Object
 (1) The object of this governance standard is to maintain, protect and enhance public trust and confidence in the governance and operation of a registered entity.

Standard
 (2) A registered entity must:
 (a) take reasonable steps to ensure that each of its responsible entities meet the conditions mentioned in subsection (3); and
 (b) after taking those steps:
 (i) be, and remain, satisfied that each responsible entity meets the conditions; or
 (ii) if it is unable to be, or remain, satisfied that a responsible entity meets the conditions, take reasonable steps to remove that entity.
Note 1: Other Australian laws may require responsible entities to be replaced, if removed, because a registered entity may need to have a minimum number of responsible entities.
Note 2: The reasonable steps required of a registered entity may include:
(a) obtaining declarations from responsible entities and searching public registers on appointment; and
(b) obtaining a commitment from a responsible entity that, if its circumstances change, it will advise the registered entity.
 (3) Subject to subsection (5), the conditions for each responsible entity are that:
 (a) it is not disqualified from managing a corporation, within the meaning of the Corporations Act 2001; and
 (b) it is not disqualified by the Commissioner, at any time during the preceding 12 months, from being a responsible entity of a registered entity under subsection (4).
Note: Other Australian laws may place other limitations on who may be the responsible entity of a registered entity, or a particular