Document ID: chunk:federal_register_of_legislation:F2024C00757:front:0:p9
Version: federal_register_of_legislation:F2024C00757
Segment Type: other
Provision Reference: 
Character Range: 21703–24810

Guide;
              the IDPS Guide is taken, from when the Supplementary IDPS Guide is given to the person, to include the information and statements contained in the Supplementary IDPS Guide.
              (18)  The licensee must keep a copy of each version of the IDPS Guide and any Supplementary IDPS Guide for at least seven years after it ceases to be used.
           Entry into IDPS contract
              (19) The licensee must not enter into an IDPS contract with a person as a retail client unless:
                  (a) the contract contains a prominent warning that:
                     (i) identifies the key areas of difference between acquiring a financial product directly and through the IDPS, including any differences in respect of the rights referred to in paragraph (4)(d); and
                     (ii) if applicable, that a client of the IDPS may be adversely affected if the client has not engaged a person, or a person meeting particular requirements, to provide financial product advice to the client or provide instructions on behalf of the client in relation to accessible investments; and
                  (b) the contract contains cross-references (including page or paragraph references where applicable) to where further information on the matters mentioned in subparagraph (a)(i) and if applicable (a)(ii) can be located in the IDPS Guide; and
                  (c) in the case of:
                     (i) a contract that is entered into electronically—the part of the facility that allows the person to enter into the contract contains a prominent statement; and
                     (ii) otherwise—the contract requires the person entering into the contract to sign an acknowledgement;
                  to the effect that the person entering into the contract acknowledges the matters contained in the warning.
           Performance of obligations
              (20) The licensee must perform its obligations under each IDPS contract and this section honestly and with reasonably care and diligence.
           Compensation
              (21) The licensee must compensate clients in relation to the functions that the licensee has contracted to perform, for acts and omissions of any of its agents engaged to perform those functions or functions connected with the performance of those functions (including transactional functions), as if they were the acts or omissions of the licensee.
              Investments held on trust
              (22) The licensee must do all things necessary to ensure that all IDPS property held by:
                  (a) the licensee is held on trust for the relevant client or clients of the IDPS; or
                  (b) a person the licensee directly or indirectly engages is held in a way so that the relevant client or clients of the IDPS have a beneficial interest in the IDPS property (whether directly or indirectly);
                  Note:   This requirement could be satisfied by a custodian holding IDPS property on trust for the licensee and the licensee holding the beneficial interest in that property on trust for the