Document ID: chunk:federal_register_of_legislation:F2024C00757:reg:1:p3
Version: federal_register_of_legislation:F2024C00757
Segment Type: reg
Provision Reference: reg 1 (pt 3/22)
Character Range: 50601–54942

Client Contact Operator                                                                                                                          Auditor's Report
       An operator who:                                                                                                                                The auditor's opinion as to whether the internal controls and other procedures of the client contact operator and any other relevant person acting on behalf of the client contact operator were suitably designed and operated effectively in all material respects to ensure that:
       1. receives the content of the statements, reports or information from a back office operator; and                                                 (a)   the annual investor statement for the relevant IDPS financial year is or has been given to clients without material misstatements; and
       2. gives or makes it available to clients                                                                                                          (b)   where the annual investor statement does not purport to include particulars of each transaction that would be required in quarterly reports for each quarter during the IDPS financial year:
       (an operator who performs both these functions is referred to in this table as a client contact operator).                                           (i)   any quarterly reports that have been given to the client contact operator by the back office operator are given to each relevant client without material alteration; and
                                                                                                                                                            Note: A client contact operator may add information relating to its identity, for example, by printing out statements on its own stationery.
                                                                                                                                                            (ii)  any information given to the client contact operator by the back office operator to be made accessible electronically under subsection (30) that relates to any of the following:
                                                                                                                                                              (A) transactions during the IDPS financial year;
                                                                                                                                                              (B) assets held during the IDPS financial year and any corresponding liabilities;
                                                                                                                                                              (C) revenue and expenses for the IDPS financial year;
                                                                                                                                                            is so made accessible without material alteration at each quarter's end in the IDPS financial year.

Internal control procedures
(33)   The licensee must:
       (a) maintain, document and comply with adequate internal control procedures to ensure compliance with the financial services laws in relation to all functions that it is responsible for performing and the requirements of this section; and
       (b) after the end of each financial year of the licensee:
           (i) cause a registered company auditor to conduct an audit and prepare a report setting out the auditor's opinion as to whether:
              (A) the licensee has complied with the internal control procedures; and
              (B) the internal control procedures met the requirements of paragraph (a) at all times during the financial year; and
           (ii) lodge a copy of that report when lodging a profit and loss statement and balance sheet under section 989B; and
       (c) ensure that where any aspect of the performance of functions of the IDPS has been contracted to another person, the contract with that person contains provisions requiring that person:
           (i) to maintain, document and comply with adequate internal control procedures to ensure compliance with the financial services laws in relation to the functions that