10Meaning of accountable person

10 Meaning of accountable person

Accountable persons of accountable entities (1) An individual is an accountable person of an accountable entity if: (a) either of the following applies: (i) in the case of an accountable entity other than an RSE licensee—the person holds a position in the accountable entity or in another body corporate of which the accountable entity is a subsidiary; (ii) in the case of an accountable entity that is an RSE licensee—the person holds a position in the accountable entity or in another body corporate of which the accountable entity is a connected entity; and (b) because of that position, the person has actual or effective senior executive responsibility: (i) for management or control of the accountable entity; or (ii) for management or control of a significant or substantial part or aspect of the operations of the accountable entity or the accountable entity’s relevant group.

Note 1: For the definitions of connected entity, relevant group and subsidiary, see section 8.

Note 2: This section is subject to section 11 (when a person is not an accountable person).

Prescribed responsibilities and positions (2) An individual is an accountable person of an accountable entity if the person: (a) holds a position in, or relating to, the accountable entity; and (b) because of that position has a responsibility, relating to the accountable entity, prescribed by the Minister rules for the purposes of this paragraph. (3) If an individual holds a position in an accountable entity that is a position prescribed by the Minister rules for the purposes of this subsection, then: (a) the individual is an accountable person of the accountable entity; and (b) for the purposes of this Act, the responsibilities associated with that position are responsibilities that cause the individual to be an accountable person of the accountable entity. (4) The Minister rules: (a) may prescribe responsibilities relating to accountable entities for the purposes of paragraph (2)(b); and (b) may prescribe positions in accountable entities for the purposes of subsection (3).

Note: For example, the Minister rules could prescribe responsibilities relating to accountable entities for the purposes of paragraph (2)(b) by reference to one or more of the following:

(a) a level of responsibility;
(b) responsibility for a matter;
(c) accountable entities of a particular kind.

Accountable persons of foreign accountable entities (5) An individual is an accountable person of an accountable entity that is a foreign accountable entity if the person: (a) has a responsibility of a kind mentioned in subsection (1) or (2); or (b) holds a position of a kind mentioned in subsection (3); in relation to a branch of the accountable entity that is operating in Australia. Accountable persons of significant related entities (6) An individual is an accountable person of a significant related entity of an accountable entity if: (a) the person holds a position in the significant related entity; and (b) because of that position, the person has actual or effective senior executive responsibility: (i) for management or control of the accountable entity; or (ii) for management or control of a significant or substantial part or aspect of the operations of the accountable entity or the accountable entity’s relevant group.