(1) 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.
(2) 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.
(3) 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.
(4) 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.