Corporations Act 2001

CHAPTER 5D - LICENSED TRUSTEE COMPANIES  

PART 5D.4 - DUTIES OF OFFICERS AND EMPLOYEES OF LICENSED TRUSTEE COMPANIES  

SECTION 601UAA   DUTIES OF OFFICERS OF LICENSED TRUSTEE COMPANY  

601UAA(1)   [ Duties]  

An officer of a licensed trustee company 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) not make use of information acquired through being an officer of the trustee company for the purpose (or for purposes including the purpose) of:

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

(ii) causing detriment to the clients of the trustee company; and

(d) not make improper use of their position as an officer for the purpose (or for purposes including the purpose) of:

(i) gaining, directly or indirectly, an advantage for the officer or for any other person; or

(ii) causing detriment to the clients of the trustee company; and

(e) take all steps that a reasonable person would take, if they were in the officer's position, to ensure that the trustee company complies, in relation to the provision of traditional trustee company services, with:

(i) this Act; and

(ii) any conditions imposed on the trustee company's Australian financial services licence.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

601UAA(2)   [ Contravention]  

A person who contravenes, or is involved in a contravention of, subsection (1) contravenes this subsection.

Note 1: Section 79 defines involved.

Note 2: This subsection is a civil penalty provision (see section 1317E ).

601UAA(3)   [ Conflicting duties]  

A duty of an officer of the trustee company under subsection (1) overrides any conflicting duty the officer has under Part 2D.1 , but is subject to any conflicting duty the officer has under Part 5C.2 .

601UAA(4)   [ Clients]  

A reference in this section to the clients of a licensed trustee company is a reference to the clients, when viewed as a group.