Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p44
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 117169–119994

in respect of that Market transaction must state that the Market Participant entered into the transaction as Principal and not as agent.

3.2.4 Brokerage and commission

(1) When a Market Participant enters into a Market transaction as Principal with a person (the Client), the Market Participant must not charge the Client brokerage, commission or any other fee in respect of the Market transaction, except in the following circumstances:

 1.         where the Client is a Prescribed Person of the Market Participant;

(b)       where the Client is a wholesale client who has consented to the Market Participant charging brokerage, commission or the other fee (and that consent has not been withdrawn); or

(c)        where otherwise permitted by the Corporations Act.

(2) A Market Participant must keep a written record of any consent given by a wholesale client under paragraph (1)(b), and send a copy of the record to that wholesale client as soon as practicable.

3.2.6 Register of persons who are regarded as Principal

A Market Participant must keep a register of the persons referred to in paragraphs (a) to (f) of the definition of "Principal" in Rule 1.4.3.

Part 3.3 Client instructions

3.3.1 Market Participant restrictions

A Market Participant must not:

 1.         accept or execute instructions from a person (a Client) to enter into a Market transaction except in accordance with these Rules and the operating rules of the relevant Market;

(b)       enter into a Market transaction for a Client, except in accordance with the instructions of the Client, or of a person authorised in writing by a Client to give such instructions, or pursuant to an exercise of discretion in respect of that particular Client's Managed Discretionary Account or as otherwise permitted by these Rules or the operating rules of the relevant Market;

(c)        allocate a Market transaction to a Client's account unless the Market transaction was entered into on the instructions of the Client, or of a person authorised in writing by a Client to give such instructions, or pursuant to an exercise of discretion in respect of that particular Client's Managed Discretionary Account or as otherwise permitted by these Rules or the operating rules of the relevant Market; or

(d)       except as permitted under these Rules or the operating rules of the relevant Market, or in writing by ASIC, enter into or arrange a Market transaction on the instructions of a Client unless the instructions are executed in such a manner that the Market transaction is entered into on a Trading Platform.

3.3.2 Excessive trading
A Market Participant must not enter into Market transactions on a Managed Discretionary Account for a retail client where the size or frequency of the Market transactions may be considered excessive having regard