32Exercise and performance of powers and duties of trustees

32 Exercise and performance of powers and duties of trustees (1) The scheme's trust deed must include provisions about the exercise of the trustees' powers, and the performance of the trustees' duties, to the effect that each trustee agrees: (a) to act honestly in all matters concerning the scheme; and (b) to exercise, in relation to all matters affecting the scheme, the same degree of care, skill and diligence as an ordinary prudent person would exercise in dealing with property of another for whom the person felt morally bound to provide; and

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 19 (c) to ensure that the trustees' powers and duties are exercised or performed in the best interests of the beneficiaries of the scheme and, if there is a conflict between the interests of the beneficiaries and the trustees' own interests, to give priority to the interests of the beneficiaries; and (d) not to make use of information acquired as a trustee in order to: (i) gain an improper advantage for the trustee or another person; or (ii) cause detriment to a beneficiary of the scheme; and (e) to ensure that the money and other assets of the scheme are: (i) clearly identified as property of the scheme; and (ii) held separately from the property of the trustee and the other trustees; and (f) not to enter into an agreement, or do anything or omit to do something, that would prevent the trustee or the other trustees from, or hinder the trustee or the other trustees in, properly carrying out their duties; and (fa) not to engage in any other activity that may bring the trustee or the scheme into disrepute; and (g) as soon as practicable after the trustee becomes aware of any breach of the Act or these Regulations that has had, or is likely to have, a materially adverse effect on the interests of a beneficiary, to report the breach to the Minister; and (h) to perform any other duty, not inconsistent with the Act or these Regulations, that is imposed on the trustee by the trust deed. (2) The trust deed may include a provision to the effect that the agreement mentioned in subregulation (1)(f) does not prevent the trustees from engaging or authorising a person to do acts or things on behalf of the trustees. (3) The trust deed may also provide for a trustee to be paid a fee for performing his or her functions.

Chapter 3 Fidelity fund schemes and approved schemes Part 3.2 Approval criteria Division 2A Management of scheme Building (RBI and Fidelity Fund Schemes) Regulations 2012 20