Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p54
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 143485–146371

must take reasonable steps to obtain the best outcome for that client.

(2) For the purposes of subrule (1), when handling and executing an Order for:
(a)        a retail client who has not given an instruction under subrule (3), the best outcome means the best Total Consideration; and
(b)       a wholesale client who has not given an instruction under subrule (4), the best outcome may be price, costs, Total Consideration, speed, likelihood of execution or any other relevant outcome, or any combination of those outcomes.

(3) If a retail client provides a Market Participant with instructions (retail client's Instructions) in relation to handling and executing that retail client's Order that are inconsistent with the Participant obtaining the best Total Consideration under subrule (1) for the retail client and that are:
(a)        clear and unambiguous;
(b)       in writing, or if provided to the Market Participant verbally, recorded by the Market Participant and retained by the Market Participant for a period of seven years; and
(c)        specific to the Order, and not contained within the terms and conditions of a client agreement or any other standard form agreement provided by the Market Participant to the client,

the Market Participant must take reasonable steps to handle and execute the Order in a way which satisfies the retail client's Instructions.
(4) If a wholesale client provides a Market Participant with instructions (Wholesale Client's Instructions) that are inconsistent with the Market Participant obtaining the best outcome under subrule (1) for the wholesale client and that are:
(a)        clear and unambiguous;
(b)       in writing, or if provided to the Market Participant verbally, recorded by the Market Participant and retained by the Market Participant for a period of seven years; and
(c)        not contained within the standard terms and conditions of a client agreement provided by the Market Participant to the client, but which may be standing instructions or specific Order by Order instructions,
the Market Participant must take reasonable steps to handle and execute the Order or Orders in a way which satisfies the Wholesale Client's Instructions.
(5) If a standing instruction is given to a Market Participant under paragraph (4)(c), that instruction must be:
(a)        periodically reviewed to ensure it remains possible for the Market Participant to satisfactorily perform the instruction; and
(b)       if the instruction provides that the Market Participant is not required to comply with subrule (1), only acted on by the Market Participant for a period of 12 months.

3.8.2 No inducement
(1) Subject to subrule (3), a Market Participant must not take steps to encourage or induce a client to provide the instructions referred to in subrules 3.8.1(3) or (4).
(2) A Market Participant must not take steps to encourage or