Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p56
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 148790–151624

the policies and procedures and implementation of them required by Rule 3.9.1 each time:
(a)        there is a material change in circumstances that affects where the Market Participant may transmit Client Orders; and
(b)       the results of monitoring undertaken under paragraph 3.9.1(2)(c) suggest the policies and procedures under subrule 3.9.1(1) are not adequate to ensure compliance with Rule 3.8.1,

for the purposes of ensuring the policies and procedures and implementation of them continue to be adequate to ensure compliance with subrule 3.8.1(1).

Part 3.10 Disclosure to clients of best execution obligation

3.10.1AA Application of Part

This Part applies to:
(a)        Participants of a Market on or through which offers to acquire or dispose of Equity Market Products are made or accepted;
(b)       Participants of a CGS Market;
(c)        Orders (including Client Orders) in relation to Equity Market Products and CGS Depository Interests.

3.10.1 Disclosure of best execution obligation

(1) Before accepting a Client Order from a client for the first time, a Market Participant must disclose to the client:
(a)        that the Market Participant is required to handle and execute Client Orders in accordance with Part 3.8;
(b)       how, in general terms, the requirements of Part 3.8 may affect the handling and execution of the Client Orders;
(c)        the Order Books, and (in reliance on an exception to subrule 6.1.1(1)) any place other than an Order Book, to which the Market Participant may transmit Client Orders;
(d)       the circumstances in which Client Orders may be transmitted to each Order Book and (in reliance on an exception to subrule 6.1.1(1)) to places other than Order Books; and
(e)        that where a client provides a Market Participant with instructions that are inconsistent with the Market Participant obtaining the best outcome for the client, the Market Participant must take reasonable steps to handle and execute the Order or Orders in a way which satisfies those instructions and, as a result, may not achieve the best outcome for the client.

(2) Each time there is a material change that affects any of the matters referred to in paragraph (1)(c) or (d), a Market Participant must disclose a summary of those changes to clients as soon as practicable after the change occurs.

(3) A Market Participant must disclose the matters referred to in paragraphs (1)(a) to (e) upon receipt of a request from a client, within a reasonable time of receiving the request.

(4) The disclosure required by subrules (1) and (2) must be in writing, and be retained by a Market Participant for a period of seven years.

(5) The disclosure required by subrule (1) must include the level of detail of information about a Market Participant's handling and execution arrangements that a client