Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p27
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 27/34)
Character Range: 83022–85837

external MDA custodian acquired through providing the services to gain an improper advantage for itself or any other person or to cause detriment to the client; and
                  (c) compensate the client for any loss because of any act or omission of any agent or other person (other than the MDA provider or a person acting on the MDA provider's behalf) engaged in connection with the custodial or depository services for the MDA services that it contracts to provide as if the acts and omissions were acts or omission of the external MDA custodian; and
                  (d)  comply with the requirements under sections 912AFA to 912AFE that apply to it.
              (3) The external MDA custodian must comply with the provisions of the contract that paragraphs (2)(a) to (c) require.
Note:  This obligation does not affect in any way the external MDA custodian's contractual obligation to comply with all the terms of the contract for the provision of custodial or depository services, nor any remedy a client may have for any breach of the contract.

           912AFB Assets holding
              (1) The external MDA custodian must do all things necessary to ensure that:
                  (a) client portfolio assets it holds, other than when held under Division 2 or 4 of Part 7.8, are held on trust for the client or the client and other clients of MDA services provided by the MDA provider; and
                  (b) where a client of the MDA service has an entitlement as a client to payment out of a deposit taking facility, the facility is an account that complies with section 981B; and
                  (c) client portfolio assets held by a person the external MDA custodian directly or indirectly engages are held in a way so that the client of the MDA service or the client and other clients of the MDA service have a beneficial interest in the client portfolio assets (whether directly or indirectly).

                  Note: Paragraph (c) could be satisfied by a person holding the client portfolio assets on trust for the external MDA custodian who in turn holds the beneficial interest in those assets on trust for the MDA provider who in turn holds the beneficial interest which it has on trust for the client or the clients of the MDA service as a whole.

              (2) Paragraphs (1)(a) and (c) do not apply where either of the following apply:
                  (a) where both of the following apply:
                     (i) the client portfolio assets are located in a place outside of this jurisdiction where trusts are not known to the law; and
                     (ii) it is reasonable for the property to be held in accordance with the law in that place;
                  (b) where both of the following apply:
                     (i) the client portfolio assets are