10Good standing of operator

10 Good standing of operator

(1) The operator of a passport fund must at all times meet the good standing test. (2) For this section, the operator meets the good standing test if: (a) the home regulator for the passport fund has not notified the operator that it is of the opinion that there is reason to believe that there is a material risk that a relevant party does not have the integrity or competence required to operate or be involved in the operation of a passport fund honestly and competently, and to act in good faith in the interests of the members of the passport fund; or (b) where a notification has been issued to the operator, the home regulator for the passport fund has revoked the notification or, if more than one, all of them in writing. (3) For this section, relevant party means any of the following: (a) the operator; (b) an officer of the operator; (c) an entity that controls the operator; (d) to the extent that the home regulator for the passport fund considers relevant, an officer of an entity that controls the operator. (4) In assessing the matters mentioned in subsection (2), the home regulator for the passport fund may take into account any relevant information including: (a) any relevant finding about a relevant party made by a regulatory body or dispute resolution service; and (b) any relevant enforcement action taken by a regulatory body against a relevant party; and (c) any relevant judgement or decision in relation to a relevant party given by a court, tribunal, arbitrator, dispute resolution service or equivalent person or body; and (d) any relevant settlement reached by a relevant party with a regulatory body, or in relation to an action or proposed action before a court, tribunal, arbitrator, dispute resolution service or equivalent person or body; and (e) any relevant enforceable undertaking or equivalent given by a relevant party to a regulatory body, court, tribunal, arbitrator, dispute resolution service or equivalent person or body.