Australian financial law can be challenging to navigate, making it important to stay apprised of both current best practices and changing legal requirements. The following general guidance will acquaint you with the latest necessary measures for maintaining a member register.
☐ Trust deed or company constitution
Your organisation’s trust deed or constitution should include provisions related to the maintenance of a member register. This document usually outlines the specific requirements and procedures for keeping membership records. Therefore the administration of registers must be compliant with these provisions.
☐ Regulations compliance
Onboarding of investors and shareholders are subject to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Australia) (2018 Edition) and Customer Identification: Know Your Customer (KYC) regulations. Adequate policies and procedures should be in place to ensure compliance with these regulations.
☐ Personal information protection
Privacy laws, such as the Privacy Act 1988 (Cth), should be adhered to when collecting and storing the personal information of members. This includes obtaining consent for the collection and use of personal data. The privacy policy of the entity must be compliant with current privacy laws.
☐ Accurate and up-to-date information
Accurate and up-to-date information should be maintained for each member. This includes details such as names, addresses, contact information, and any other relevant details specified in your organisation’s trust deed or constitution. This is particularly important for bank details and emails. Specified processes will streamline this operation.
☐ Access to the register
Who may have access to the member register should be defined, as well as under which circumstances. Typically, members should have the right to access their own information, and certain designated individuals within the organisation may have or require access for legitimate purposes.
☐ Security measures
Security measures must be implemented to safeguard the member register from unauthorised access or misuse. This may include password protection, encryption, and other measures that protect the confidentiality of the information.
☐ Retention period
Be aware of any legal requirements regarding the retention period for member registers. In Australia, companies may be required to retain certain records for a specified period.
☐ Notification of changes
A process to notify members of any changes to their personal information should be established. Regularly update the register to reflect these changes.
☐ Compliance with regulatory bodies
Specific regulations or guidelines provided by regulatory bodies also need to be adhered to, such as those from ASIC, ATO and Austrac. Familiarise yourself with any updates or changes in legislation that may impact the maintenance of member registers. There are reporting requirements in relation to The Foreign Account Tax Compliance Act (FATCA), The Common Reporting Standard (CRS), the Annual investment income report (AIIR), and the Quarterly Tax File Number (QTFN). These can be complex and require specialist reporting tools.
☐ Record-keeping
Accurate records need to be kept of any transactions or changes related to membership, such as transfers, resignations, or terminations.
☐ Reporting and communication
Where there is regular reporting to investors, a secure platform must be established and maintained for them to access their data and receive automated reporting in relation to account maintenance, transactions, and tax reporting.
☐ Auditing and review
The member register should be audited and reviewed periodically to ensure its accuracy and compliance with relevant laws and regulations.
The Rawlings Bolton team is an expert in this area and can provide outsourcing registry services at a very competitive cost. Please contact Priya Sharma on 07 3905 4545 or [email protected] for a no-obligation quote.
