Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p3
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 3/34)
Character Range: 18949–21671

by the licensee.

    Extended meaning of certain defined terms

       (4) Where a definition in section 4 refers (directly or indirectly) to a MDA provider, the licensee is taken to be a MDA provider for the purposes of applying the definition to this section or section 14.
           Note:  For example, the licensee is taken to be a MDA provider for the purposes of determining whether services provided by the licensee are MDA services.

14 Conditions
(1) A licensee who relies on the exemption in section 13 must, before issuing the financial product referred to in paragraph 13(1)(a) to a person as a retail client who is a family member who is an adult at the time of issue:
           (a) obtain from the person:
(i) written agreement to the discretions that the licensee may exercise as part of the MDA services; and
(ii) written acknowledgement that:
(A) confirmation of transactions that the licensee conducts as part of the MDA services will be sent to an address nominated by the person; and
(B) transactions the licensee conducts for the person as part of the MDA services will be subject to surveillance and review as if the person were an employee of the licensee; and
           (b) disclose to the person in writing:
(i) whether the person has access to any internal and external dispute resolution schemes in relation to becoming a person in relation to the MDA services, and if so, details of the schemes and how to access them; and
(ii) that the licensee is required by the Act to have adequate internal and external dispute resolution arrangements to deal with complaints in relation to any dealing by the licensee in financial products as part of the MDA services; and
              (iii) whether, in relation to the MDA services, the person has access to any compensation arrangements the licensee is required to maintain under the Act; and
           (c) maintain adequate policies and procedures about internal controls and supervisory arrangements to ensure all discretions exercised as part of the MDA services are discretions agreed by the person and implement the procedures.
(2) A licensee who relies on the exemption in section 13 must ensure that the client portfolio assets of a family member who is being provided with MDA services as a retail client does not include:
           (a) interests in a managed investment scheme that is not a registered scheme; or
           (b)  interests in a scheme that is not a managed investment scheme because of paragraph (e) of the definition of managed investment scheme in section 9 of the Act; or
(c)  a non-limited recourse product.
(3)  Paragraph (2)(c) does not apply if the person is an adult and:
           (a) both:
(i) the person has