11Appointment of custodian

11 Appointment of custodian

(1)  A funeral trust is of no effect unless it provides for the appointment of a custodian to act as manager of the trust's business.

(2)  The custodian must not have any interest in any funeral business that is a beneficiary of the funeral trust and the custodian must not otherwise be a beneficiary of the trust.

(3)  The responsibilities of the custodian are to ensure –

(a) that payments by the funeral trust are made only in accordance with this Act and a prepaid funeral agreement; and

(b) that funds held by the funeral trust are invested in accordance with the Trustee Act 1898 ; and

(c) that the funeral trust is administered in accordance with this or any other Act.

(4)  The custodian must ensure that all investments made or held by the funeral trust are made or held in the name of the custodian on behalf of the funeral trust unless otherwise authorised by the Director.

Penalty:  Fine not exceeding 10 penalty units.