Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p7
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 7/34)
Character Range: 29067–31778

investing in those types of products) that may be material to the decision of a person as a retail client whether to acquire those types of products;
(iii) information about the degree of leverage that may apply in relation to each type of product and in relation to the client portfolio assets of the client as a whole, including:
(A) if the maximum potential liability of a person holding a type of product is unlimited—a statement to that effect; and
(B) otherwise—the maximum value of the ratio between the maximum potential liability of a person holding that type of product and the amount payable by the person to acquire that type of product;
(iv) a clear and prominent example illustrating in dollars the risk of the potential liability of a person who holds each type of product;
(v) information about the policy of the licensee for communicating and satisfying margin calls or requirements to provide collateral or make payments in relation to each type of product;
(vii) information about the policy of the licensee for closing positions at a loss in relation to each type of product;
(k) any other information that a person would reasonably require for the purpose of making a decision, as a retail client, about whether to invest through the MDA service.
(2) The Financial Services Guide must also contain information about fees and costs in relation to the MDA services that complies with Part 2 of Schedule 10 of the Corporations Regulations 2001 as if:
(a) a financial product that is either of the following were a managed investment product:
(i) an interest in a managed investment scheme that is limited to the MDA services;
(ii) a miscellaneous financial investment product that is limited to the MDA services; and
(b) the Financial Service Guide were a Product Disclosure Statement for such a managed investment product; and
(c) the licensee were the responsible person (as defined in subsection 1013A(3)) for such a managed investment product.
Note:  Part 2 of Schedule 10 of the Corporations Regulations 2001 is notionally modified in relation to a Product Disclosure Statement for a managed investment product by ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070.
(3) The information required by subsection (1) need only be included in the Financial Services Guide to the extent that:
(a) a person would reasonably require the information for the purpose of making a decision, as a retail client, about whether to participate in the MDA service; and
(b) the information is actually known to the licensee or, if the licensee is a body corporate, any director of the licensee.
Note:  The information required by subsection (2) is affected by section 1013C(2) of the Act