THE CORPORATIONS LAW

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

PART 5C.2 - THE RESPONSIBLE ENTITY

Division 1 - Responsibilities and powers

SECTION 601FD   DUTIES OF OFFICERS OF RESPONSIBLE ENTITY  

601FD(1)  [Duties of officer]  

An officer of 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 officer's position; and

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

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

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

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

(e)  not make improper use of their position as an officer to gain, directly or indirectly, an advantage for themselves or for any other person or to cause detriment to the members of the scheme; and

(f)  take all steps that a reasonable person would take, if they were in the officer's position, to ensure that the responsible entity complies with:

(i) this Law; and

(ii) any conditions imposed on the responsible entity's dealers licence; and

(iii) the scheme's constitution; and

(iv) the scheme's compliance plan.

Note:

Subsection (1) is a civil penalty provision as defined in section 1317DA and Part 9.4B provides for civil and criminal consequences of contravening it.

601FD(2)  [Conflicting duty]  

A duty of an officer of the responsible entity under subsection (1) overrides any conflicting duty the officer has under section 232.