31Eligibility criteria for appointment as trustee

31 Eligibility criteria for appointment as trustee (1) The scheme's trust deed must include provisions about the eligibility criteria for the appointment of a person as a trustee of the scheme as specified by this regulation. (2) To be eligible for appointment as a trustee of the scheme, a person must: (a) be an individual who is an Australian citizen; and (b) have the competence, knowledge, skills, experience, qualifications and integrity to carry out the duties as trustee that would be expected of an ordinary prudent person carrying out those duties; and (c) maintain professional indemnity insurance in relation to the position as a trustee that is prudent and reasonable in the circumstances and that covers claims amounting to the lesser of the following: (i) $5 000 000; (ii) the total of the value of all the assets of the scheme.

Chapter 3 Fidelity fund schemes and approved schemes Part 3.2 Approval criteria Division 2 Trustees of scheme Building (RBI and Fidelity Fund Schemes) Regulations 2012 17 (3) A person is not eligible for appointment as a trustee of the scheme if the person: (a) has an actual or potential conflict of interest that is likely to influence the person's ability to carry out the duties of a trustee with appropriate probity and competence; or (b) has been an insolvent under administration as defined in section 9 of the Corporations Act 2001; or (c) is under investigation, or has been disciplined or removed from membership of a professional body relevant to the duties as a trustee; or (d) has been refused the right, or restricted in the right, to carry on any trade, business or profession relevant to the duties as a trustee; or (e) has been the subject of an adverse finding in relation to dishonest conduct in any judgment in an administrative or civil proceeding in any jurisdiction of Australia or in a foreign country; or (f) has been convicted of an offence: (i) against the Act, the Corporations Act 2001, the Insurance Act 1973 (Cth), or the Financial Sector (Collection of Data) Act 2001 (Cth); or (ii) against a law of any jurisdiction of Australia, or a foreign country, involving dishonest conduct.