Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p10
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 10/34)
Character Range: 36668–39686

the client if the client has provided limited or inaccurate information relating to the client's relevant personal circumstances; and
                     (ii) may cease to be suitable if the client's relevant personal circumstances change; and
                  (d) if the client portfolio assets may include non-limited recourse products, the information referred to in paragraph 912AEA(1)(j).
              (6) If the licensee prepares the investment program, the licensee must ensure that the investment program:
                  (a) is appropriate for the client; and
                  (b) sets out, in as much detail as a retail client would reasonably require to clearly understand:
                     (i) any significant risks associated with the nature and scope of the licensee's discretions under the MDA contract and the strategies that are to be applied in exercising those discretions; and
                     (ii) whether and, if so, how the client may give instructions to the licensee that affect the licensee's discretions under the MDA contract; and
                     (iii) details of when and by whom the suitability of the MDA contract to the client's relevant personal circumstances will be reviewed as required by this section; and
                  (c) is worded and presented in a clear, concise and effective manner; and
                  (d) unless there is a separate Statement of Advice that meets those requirements, complies with the requirements for a Statement of Advice in Subdivisions C and D of Division 3 of Part 7.7.
              (7) If an external MDA adviser prepares the investment program, the licensee must have no reason to believe that:
                  (a) the investment program does not comply with the requirements for a Statement of Advice in Subdivisions C and D of Division 3 of Part 7.7; or
                  (b) any statement in the Financial Services Guide given by the licensee about the investment program prepared by the external MDA adviser is misleading or deceptive or likely to mislead or deceive.

    MDA contract and investment program review

              (8) The licensee must ensure that it or an external MDA adviser gives a person personal advice about whether a MDA contract, including the investment program for the person, is suitable in light of the person's relevant personal circumstances:
(a)  before entering into the contract with the person as a retail client; and
(b)  at least once every 13 months after doing so.
              (9) If an external MDA adviser gives personal advice to a person before a MDA contract is entered into, the licensee:
(a) must review the Statement of Advice given in relation to the advice before entering into the contract; and
(b) must not enter into the contract if it has reason to believe that the MDA service is not appropriate to the client's relevant personal circumstances.

912AEC Asset holding
              (1) The licensee must ensure that client portfolio assets of a client are not