Corporations Act 2001

CHAPTER 5C - MANAGED INVESTMENT SCHEMES  

PART 5C.2 - THE RESPONSIBLE ENTITY  

Division 1 - Responsibilities and powers  

SECTION 601FC   DUTIES OF RESPONSIBLE ENTITY  

601FC(1)    

In exercising its powers and carrying out its duties, the responsible entity of a registered scheme must:

(a)    act honestly; and

(b)    exercise the degree of care and diligence that a reasonable person would exercise if they were in the responsible entity ' s position; and

(c)    act in the best interests of the members and, if there is a conflict between the members ' interests and its own interests, give priority to the members ' interests; and

(d)    treat the members who hold interests of the same class equally and members who hold interests of different classes fairly; and

(e)    not make use of information acquired through being the responsible entity in order to:

(i) gain an improper advantage for itself or another person; or

(ii) cause detriment to the members of the scheme; and

(f)    ensure that the scheme ' s constitution meets the requirements of sections 601GA and 601GB ; and

(g)    ensure that the scheme ' s compliance plan meets the requirements of section 601HA ; and

(h)    comply with the scheme ' s compliance plan; and

(i)    ensure that scheme property is:

(i) clearly identified as scheme property; and

(ii) held separately from property of the responsible entity and property of any other scheme; and

(j)    ensure that the scheme property is valued at regular intervals appropriate to the nature of the property; and

(k)    ensure that all payments out of the scheme property are made in accordance with the scheme ' s constitution and this Act; and

(l) (Repealed)

(m)    carry out or comply with any other duty, not inconsistent with this Act, that is conferred on the responsible entity by the scheme ' s constitution.

601FC(2)    
The responsible entity holds scheme property on trust for scheme members.

Note: Under subsection 601FB(2) , the responsible entity may appoint an agent to hold scheme property separately from other property.

601FC(3)    

A duty of the responsible entity under subsection (1) or (2) overrides any conflicting duty an officer or employee of the responsible entity has under Part 2D.1 .

601FC(4)    
(Repealed by No 101 of 2007, s 3, Sch 1, Pt 1 [ 66].)

601FC(5)    

A responsible entity who contravenes subsection (1) , and any person who is involved in a responsible entity ' s contravention of that subsection, contravenes this subsection.

Note 1: Section 79 defines involved .

Note 2: Subsection (5) is a civil penalty provision (see section 1317E ).

601FC(6)    
(Repealed by No 180 of 2012, s 3, Sch 1[17].)

601FC(7) - (8)    
(Repealed by No 117 of 2001, s 3, Sch 1 [ 179] and [ 180].)