THE CORPORATIONS LAW

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

PART 5C.5 - THE COMPLIANCE COMMITTEE

SECTION 601JA   WHEN IS A COMPLIANCE COMMITTEE REQUIRED?  

601JA(1)  [Compliance committee]  

The responsible entity of a registered scheme must establish a compliance committee if less than half of the directors of the responsible entity are external directors.

601JA(2)  [External director]  

A director of the responsible entity is an external director if they:

(a)  are not, and have not been in the previous 2 years, an employee of the responsible entity or a related body corporate; and

(b)  are not, and have not been in the previous 2 years, an executive officer of a related body corporate; and

(c)  are not, and have not been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the responsible entity or a related body corporate; and

(d)  are not a member of a partnership that is, or has been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the responsible entity or a related body corporate; and

(e)  do not have a material interest in the responsible entity or a related body corporate; and

(f)  are not a relative or de facto spouse of a person who has a material interest in the responsible entity or a related body corporate.

601JA(3)  [Time for establishment]  

The responsible entity must establish the compliance committee within 14 days after it is required to do so by subsection (1) or within any longer period that ASIC has agreed to in writing.

601JA(4)  [Conditions]  

In agreeing to a longer period under subsection (3), ASIC may impose conditions to be complied with and the responsible entity must comply with them.