Corporations (Passport) Rules 2018
14Independent oversight entity of a passport fund
Start here
Get a plain-English read of 14
Turn the raw legal text into a practical explanation grounded in Corporations (Passport) Rules 2018.
14 Independent oversight entity of a passport fund
(1) For these rules, the independent oversight entity of a passport fund in a participating economy is the body shown in the following table:
| Item | Home economy for the passport fund | Independent oversight entity |
|---|---|---|
| 1 | Australia | Each of the external directors of the operator or, if there is a compliance committee of the registered scheme under the Corporations Act 2001, the compliance committee. |
| 2 | Japan | Each external member of the board of company auditors, audit committee, or audit and supervisory committee designated by the Companies Act, or the trust company or a financial institution engaged in trust business designated by the Act on Investment Trusts and Investment Corporations. |
| 3 | Korea | The trust business entity for the collective investment scheme under the Financial Investment Business and Capital Markets Act of Korea. |
| 4 | New Zealand | The supervisor of the registered managed investment scheme who is licensed under the Financial Markets Supervisors Act 2011. |
| 5 | Singapore | An approved trustee under the Securities and Futures Act of Singapore of an authorised scheme. |
| 6 | Thailand | In the case of a scheme established as a mutual fund, the mutual fund supervisor appointed for the mutual fund under the Securities and Exchange Act B.E. 2535 (1992). In the case of a scheme established as a trust, the entity approved by the Securities and Exchange Commission under the Trust for Transactions in Capital Market Act B.E. 2550 (2007) to perform such oversight function over the trust. |
(2) The independent oversight entity must: (a) monitor the operator for compliance with the constituent documents of the passport fund, the laws of the home economy for the passport fund relating to the operation of the passport fund and Divisions 6.2 to 6.5 of the Passport Rules for the home economy for the passport fund; and (b) if, in the reasonable opinion of the independent oversight entity, the operator is required by section 12 of the Passport Rules for the home economy for the passport fund to report non‑compliance with the constituent documents of the passport fund or the laws of the home economy for the passport fund relating to the operation of the passport fund including the Passport Rules for the home economy to the home regulator or a host regulator for the passport fund but fails to do so, notify its opinion including particulars of the non‑compliance to the regulator as soon as practicable but no later than 7 days after forming the opinion. (3) The independent oversight entity must exercise reasonable care and diligence in performing the functions listed in subsection (2) considering the interests of the members of the passport fund. (4) The operator must provide any assistance required by the independent oversight entity to perform its functions.