When you have a registered scheme, the custodian is like a guardian who looks after the scheme's property. The custodian holds this property on trust for the scheme, which means they are responsible for taking care of it for the scheme's benefit. The custodian must make sure the scheme's property is kept separate from their own property and from property belonging to anyone related to the scheme.

The custodian has to follow certain rules and duties to ensure the scheme's property is handled correctly. You can think of these rules like a checklist that the custodian must follow to make sure everything is done properly. The custodian must also comply with any other requirements that apply to the scheme's property.

If the custodian has debts or owes money to someone, the scheme's property cannot be used to pay those debts. This means the scheme's property is protected and cannot be taken away by the custodian's creditors. However, if the custodian has a lawful claim against the scheme's property, this section does not affect that claim.