Document ID: chunk:federal_register_of_legislation:F2024L00375:body:0:p7
Version: federal_register_of_legislation:F2024L00375
Segment Type: other
Provision Reference: 
Character Range: 15567–18440

demand and discretionary decisions relating to transactions in foreign currency.
sub-custodian means, in relation to a financial services licensee, a person the licensee engages to hold custodial property.
(17) For the purposes of this section and sections 912AAD and 912AAE:
(a) a person (first person) engages another person if the first person engages or authorises the other person; and
(b) a person (first person) indirectly engages another person (second person) if:
(i) the first person engages a person and that person engages the second person; or
(ii) a person who is indirectly engaged by the first person under subparagraph (i) or this subparagraph (ii) engages the second person.
           912AAD Agreements with sub-custodians to hold custodial property
(1) A financial services licensee that engages a sub-custodian to hold custodial property must ensure that it has a written agreement with the sub-custodian that meets the requirements of subsections (2) to (4) except:
(a) to the extent that, in relation to custodial property held outside of this jurisdiction, the financial services licensee holds documents that demonstrate that it is not reasonably practicable to engage another person to hold the custodial property who is willing to include such matters in the agreement; or
(b) where the sub-custodian is controlled by the financial services licensee and the financial services licensee is liable to its client for the acts and omissions of the sub-custodian as if they were the acts or omissions of the financial services licensee.
(2) The agreement with the sub-custodian must have provisions:
(a) specifying reasonable rights that the financial services licensee has for the ongoing review and monitoring of the sub-custodian and any person that the sub-custodian directly or indirectly engages and the standards against which their performance will be assessed; and
(b) to the effect that the sub-custodian must certify to the financial services licensee in writing at least every 13 months that the sub-custodian believes on reasonable grounds that the sub-custodian and each person engaged directly or indirectly by the sub-custodian to hold the custodial property have met since the date of the previous statement in writing or the commencement of the agreement, and the sub-custodian has no reason to believe that the sub-custodian and each such person will not continue to meet:
(i) in the case of the sub-custodian, the terms of the agreement; and
(ii) in any case, the requirements that the financial services licensee must do all things necessary to ensure under subsections 912AAC(5) to (9), (11) and (13) are met by the sub-custodian or such a person in relation to custodial property held by the sub-custodian or such a person (except to the extent that the licensee is not complying with a requirement under paragraphs 912AAC(6)(a)