AYB240 Lecture Notes - Lecture 5: Nick Sherry, Faithful Representation, Corporations Act 2001
Document Summary
Trustee owes duty to members to safeguard fund assets and properly manage the fund"s affairs. Periodic reporting to members discharges trustees" responsibility to be accountable to fund members in relation to stewardship of fund assets: e. g. financial reports (aas 25, para. 6) One of the objectives of disclosure requirements under the financial services reform act 2001 and the corporations act 2001: promote fairness, honesty and professionalism by those who provide financial services. Statutory disclosure requirements (corporations act 2001 part 7. 9 and corporations regulations) Key disclosure requirements under the legislation: product disclosure statements (pds, periodic member statements, period fund information (annual reports, audited financial statements. Due diligence approach: all information reasonably required by members and their advisers to make an informed assessment of. Financial position, performance and prospects of the fund offering super product. Key features statement approach: list of specific items to be disclosed. Corporations act pt 7. 9 incorporates both approaches at present.
