Document ID: chunk:federal_register_of_legislation:F2024C00757:reg:1:p17
Version: federal_register_of_legislation:F2024C00757
Segment Type: reg
Provision Reference: reg 1 (pt 17/22)
Character Range: 88589–91380

reporting system and service with the following features is provided:
       (a) the clients of the investor directed portfolio service have the sole discretion to decide what (but not necessarily when) assets will be acquired or disposed of, except where:
           (i) there are any prior written directions (that the client has agreed not to vary) to acquire or dispose of a particular asset in particular circumstances (other than a circumstance that is affected by a discretion of an operator); or
           (ii) the client has authorised an operator or another person to give directions on their behalf, for the purpose of the other person receiving or securing payment of moneys owing by the client to the person; and
       (b)  subject to any prior contrary directions in order to ensure payment of moneys for which the client is liable, a client may direct an operator to:
           (i) take reasonable steps to transfer assets to or to the order of the client; and
           (ii) realise assets held on account for the client and either:
              (A) pay the proceeds to or to the order of the client; or
              (B) if the operator and the client agree, hold the proceeds under the IDPS in an account with an Australian ADI designated as a trust account;
       unless the assets cannot be transferred or realised under law or the terms of their issue; and
       (c) except where otherwise mentioned in paragraph (a) or (b), any discretion of the holder of assets held through the investor directed portfolio service may be exercised only in accordance with the directions from time to time of the relevant client; and
       (d) the investor directed portfolio service is provided in such a way that clients are led to expect, and are likely to receive, benefits in the form of:
           (i) access to investments that the client could not otherwise access directly; or
           (ii) cost reductions by using assets contributed by the client or derived directly or indirectly from assets contributed by the client with assets contributed by other clients or derived directly or indirectly or indirectly from assets contributed by other clients;
       but does not include a scheme under which material terms of any rights that may be acquired on behalf of a client are negotiated, or substantially determined.
           Note:    Cost reductions may arise from the pooling of client funds to make large investments that can be acquired on more favourable terms than if the investments were made by each client on their own behalf. They may also arise from the "netting" of transactions whereby directions of clients to buy and sell assets are offset against each other and a transaction for the net amount is entered into.
    IDPS contract means a contract