Document ID: chunk:federal_register_of_legislation:F2023L01163:body:0:p3
Version: federal_register_of_legislation:F2023L01163
Segment Type: other
Provision Reference: 
Character Range: 5268–8001

no NTA requirement.
(5) This subsection applies if the licensee is an incidental provider and all the financial products or beneficial interests in financial products to which the custodial or depository services provided by the licensee relate are held by:
(a) a financial services licensee that is authorised to provide a custodial or depository service and that the licensee reasonably believes:
(i) is not an incidental provider; and
(ii) complies with the requirements of this section; or
(b) a sub-custodian appointed by such a financial services licensee; or
(c) an eligible custodian.
(6) If the licensee has obtained a written assurance within the preceding 13 months from a custodian that holds an Australian financial services licence authorising it to provide a custodial or depository service that, at the time the assurance is given, the custodian complies with the requirements of this section and is not an incidental provider, the licensee is taken to have the reasonable belief referred to in paragraph (5)(a) in relation to the custodian.
(7) Unless subsection (5) applies, the licensee must hold at all times:
(a) cash or cash equivalents in an amount that is at least 50% of the NTA that it is required to hold under subsection (4); and
(b) liquid assets in an amount that is at least 100% of the required NTA.
Money that is in an account held by the licensee for the purposes of section 981B cannot be counted towards either requirement. Other cash or cash equivalents that are also liquid assets can be counted for both paragraph (a) and paragraph (b).
(8) Following a request in writing from a financial services licensee (appointing licensee) that has appointed it to provide a custodial or depository service, the licensee must provide the appointing licensee within a reasonable time with a written statement:
(a) regarding its compliance with the requirements of this section; and
(b) stating whether it is an incidental provider;
at the time the statement is given.
(9) If the licensee lodges a report to ASIC under subsection 912DAA(1) relating to a contravention of this section, it must immediately notify each appointing licensee in writing.
Audit opinion
(10) The licensee must lodge with ASIC a report (audit opinion) by a registered company auditor addressed to the licensee and ASIC for each financial year of the licensee that states whether:
(a) in the auditor's opinion, the licensee:
(i) complied with paragraph (3)(b) and subsections (4) and (7) (or did not need to comply with subsections (4) and (7) on the basis that subsection (5) applied) and other financial requirements in conditions on its licence; and
(ii) had at all times a projection that purports to, and appears on its face to,