(1) A scheme's compliance committee must have at least 3 members, and a
majority of them must be external members.
(2) A member of the compliance committee is an external member if they:
- (a)
- are not, and have not been in the previous 2 years, a non-external director,
an executive officer or an employee of the responsible entity or a
related body corporate; and
- (b)
- 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
- (c)
- 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
- (d)
- do not have a material interest in the responsible entity or a related
body corporate; and
- (e)
- 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) For the purposes of paragraph (2)(a), a person who is a director of a
related body corporate, but not of the responsible entity itself, is an
external director of the related body corporate if they would have been an
external director of the responsible entity under subsection 601JA(2) had they
been a director of the responsible entity.
(4) A person who is, or has been, either:
- (a)
- an external director of the
responsible entity; or
- (b)
- a member of a compliance committee for the scheme or another registered
managed investment scheme operated by the responsible entity;
is not, merely because of that directorship or membership, taken to be, or to
have been, substantially involved in business dealings, or in a professional
capacity, with the responsible entity.
(5) If the membership of the scheme's compliance committee ceases to satisfy
subsection (1), the responsible entity must make appointments to the
committee to satisfy that subsection within 14 days or within any longer
period that ASIC has agreed to in writing.
(6) In agreeing to a longer period under subsection (5), ASIC may impose
conditions to be complied with and the responsible entity must comply with
them.