34Financial management

34 Financial management (1) The scheme's trust deed must: (a) specify the powers of the trustees in relation to dealing with the scheme's assets; and (b) require the trustees to: (i) restrict the investment of the scheme's assets to the investments permitted by the prudential standards; and (ii) ensure that all payments out of the scheme's assets are made in accordance with the Act, these Regulations and the trust deed. (2) If the trust deed gives the trustees a right to recover out of the scheme's assets liabilities or expenses incurred in relation to the performance of their duties, or to be indemnified out of the scheme's assets for those liabilities or expenses, the trust deed must specify that: (a) the right or indemnity is to be available only in relation to the proper performance of the trustees' duties; and (b) any other agreement or arrangement has no effect to the extent that it purports to confer such a right or indemnity. (3) If the trustees are to have any power to borrow money or raise money for the purposes of the scheme, the trust deed must specify that: (a) the exercise of the power must be consistent with the restrictions on borrowing mentioned in regulation 80(5); and

Chapter 3 Fidelity fund schemes and approved schemes Part 3.2 Approval criteria Division 3 Fidelity certificates for residential building work Building (RBI and Fidelity Fund Schemes) Regulations 2012 21 (b) any other agreement or arrangement has no effect to the extent it purports to confer such a power.