Document ID: chunk:federal_register_of_legislation:F2007L02104:body:0:p2
Version: federal_register_of_legislation:F2007L02104
Segment Type: other
Provision Reference: 
Character Range: 2647–4336

agreement between an RSE licensee of a registrable superannuation entity and a custodian, to the extent that:
(a) the agreement or arrangement is between:
                     (i) the custodian and a sub-custodian; or
         (ii) a sub-custodian and another sub-custodian; and

         (b)  the material outsourcing agreement contains a provision that the custodian accepts responsibility for any liability arising from the failure of any sub-custodian to exercise reasonable care in the custody of the assets of the registrable superannuation entity.

    (6B)  For the purposes of subregulation (6A), the liability of a custodian to an RSE licensee must not be dependent upon any recovery of losses by the custodian from any sub-custodian.
    (6C)  For the purposes of subregulations (6A) and (6B), a sub-custodian means a person (other than an RSE licensee of a registrable superannuation entity or a securities depository) who, under a written contract with a custodian or another sub-custodian, performs any custodial function, in relation to the assets of a registrable superannuation entity, that the custodian is required to perform under a written contract with the RSE licensee of the registrable superannuation entity.
    (6D)  For the purposes of subregulation (6C), securities depository means a book-entry or other settlement system or clearing house or agency through which a custodian or a sub-custodian may transfer, settle, clear, deposit or maintain securities, whether in certificated or uncertificated form, and includes any services provided by any network service provider or carriers or settlement banks used by a settlement system or clearing house or agency.