Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p5
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 5/34)
Character Range: 24029–26790

suitable in light of the person's relevant personal circumstances at least once every 13 months.
       (7) A licensee who relies on the exemption in section 13 must not consent to a variation of a provision referred to in paragraph 13(2)(b).

Part 3—Declaration

15 Requirements for the provision of MDA services
Part 7.6 of the Act (other than Divisions 4 and 8) applies in relation to a financial services licensee as if it were modified or varied by inserting the following sections in their relative order in Division 3 of Part 7.6:

"912AE – Requirements for the provision of MDA services
(1) Sections 912AEA to 912AEG apply to a financial services licensee that:
(a)  holds an Australian financial services licence authorising it to deal in either or both of:
(i) interests in managed investment schemes that are limited to rights to receive MDA services; and
(ii) miscellaneous financial investment products that are limited to rights to receive MDA services; and
                     Note: The licence may authorise dealings in other interests in managed investment schemes or miscellaneous financial products.
(b) provides, or offers to provide, MDA services to a person as a retail client.

912AEA Financial Services Guide
(1) A licensee must, before entering into a MDA contract to provide MDA services to a person as a retail client, give the person a Financial Services Guide that complies with Division 2 of Part 7.7 and, subject to subsection (3), includes the following statements and information:
(a) information about the operation of any outsourcing arrangements that apply to the licensee in relation to the MDA services, including:
(i) a brief description of the procedures the licensee has in place to ensure that due skill and care is taken in choosing suitable service providers; and
(ii)  the functions of the licensee that are outsourced; and
(iii) the entities that will be performing the outsourced functions; and
(iv) a brief description of the procedures the licensee will use to monitor the performance of the providers of the outsourced functions;
(b) a statement that the person must first enter into a MDA contract before MDA services are provided to the person;
(c) if the investment program that will be included in the MDA contract is to be one prepared by the licensee, statements that the investment program complies with Division 3 of Part 7.7 and Division 2 of Part 7.7A and will contain:
(i) a statement about the nature and scope of the discretions the licensee will be authorised to, and those that the licensee is required to, exercise under the MDA contract and the investment strategy that is to be applied in exercising those discretions; and
(ii) information about any significant risks associated with the MDA