Corporations Act 2001

An officer of the responsible entity of a registered scheme must:

act honestly; and

exercise the degree of care and diligence that a reasonable person would exercise if they were in the officer’s position; and

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

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

gain an improper advantage for the officer or another person; or

cause detriment to the members of the scheme; and

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

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:

this Act; and

any conditions imposed on the responsible entity’s Australian financial services licence; and

the scheme’s constitution; and

the scheme’s compliance plan.

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

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

Section 79 defines involved.

Subsection (3) is a civil penalty provision (see section 1317E).

A person must not intentionally or recklessly contravene, or be involved in a contravention of, subsection (1).