Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:6
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 6
Character Range: 11960–14088

6  Persons involved in acquiring MDA services
A person does not have to comply with Part 7.9 of the Act in relation to a financial product that relates to a MDA service where:
(a) the person has no reason to believe that a MDA provider may not rely on the exemption under paragraph 5(1)(c) in relation to the product; and
(b) the person is not:
(i) the MDA provider; or
(ii) an external MDA custodian who provides a custodial or depositary services in relation to the MDA service.

7 Dealers contracted by MDA provider
(1) A financial services licensee and an authorised representative of the licensee do not have to give a person a Financial Services Guide under subsection 941A(1) or 941B(1) in relation to a dealing in a financial product where:
           (a) the person is a client of a MDA provider; and
           (b) the licensee:
(i) contracts with the MDA provider to deal on behalf of the client in client portfolio assets; and
(ii) does not contract with the client except under a contract that the MDA provider enters as the client's agent in relation to the dealing.
Subparagraph (b)(ii) must also apply in relation to an authorised representative where the representative is dealing.
Exclusion
(2) The exemption in subsection (1) does not apply to:
           (a)  a person if the person is notified by ASIC in writing that they are excluded from relying on this section and ASIC has not withdrawn that notice in writing;
           (b) a licensee if 10 business days have elapsed since the licensee became or should reasonably have become aware of matters that give the licensee reason to believe that it has failed, other than in an immaterial respect, to comply with the condition in section 8 without full particulars of the failure having been notified to ASIC (to the extent that the licensee knows those particulars or would have known them if they had undertaken reasonable enquiries);
           (c) an authorised representative of a licensee (except when they are acting on behalf of another licensee) if they have reason to believe that the exemption in subsection (1) does not apply to the licensee.