Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p12
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 12/34)
Character Range: 42076–44993

assets that include how the instructions are given and reasonable controls to ensure that the instructions are properly authorised and carried out.
              (5) The licensee must ensure that it and must do all things necessary to ensure that any person it directly or indirectly engages to hold client portfolio assets:
                  (a) as far as practicable identifies the client portfolio assets as held on behalf of the person for whom they are held; and
                  (b) holds the client portfolio assets separately from property in which the licensee or the person holding the client portfolio assets has an interest and from the property of any other person other than the client and other clients of the MDA service except in relation to:
                     (i) Australian or foreign currency; or
                     (ii) a deposit taking facility of a body carrying on a business of accepting money on deposit including rights under that facility; or
                     (iii) securities; or
                     (iv) derivatives;
                  held separately from property in which the licensee or the person has an interest other than as a trustee for a person other than the licensee, except where property is not held separately to comply with paragraph (6)(f).
              (6) The licensee must do all things necessary to ensure that, if client portfolio assets of a client are not held separately from property in which the licensee or the person holding the client portfolio assets has an interest and separately from the property of any other person other than the client and other clients of the MDA service:
                  (a) the licensee has put in place and keeps for 7 years after it was last relied on a written policy in relation to not holding client portfolio assets separately which sets out its reasons why that policy is appropriate having regard to any extent to which it might expose its clients to the risks arising from client portfolio assets not being held separately and its duties to each client; and
                  (b) the licensee reviews the policy at least every 13 months, prepare a written record of the outcome of the review and keep that record for 7 years; and
                  (c) adequate records are kept at all times showing each client's entitlement to property that includes the client portfolio assets not held separately; and
                  (d) reconciliation procedures are performed on each business day in relation to the client portfolio assets not held separately or if because of the nature of the property, it is ordinary and reasonable commercial practice in the place where the property is located to reconcile property of that kind less frequently, as frequently as would be performed in accordance with that practice; and
                  (e) not holding the client portfolio assets separately does not restrict the