Document ID: chunk:federal_register_of_legislation:F2024C00757:front:0:p4
Version: federal_register_of_legislation:F2024C00757
Segment Type: other
Provision Reference: 
Character Range: 7894–10860

an IDPS does not have to comply with:
        1.           Parts 6D.2 and 6D.3 or section 992A of the Act for an offer to issue equitable rights or interests in accessible securities arising because of an offer to hold, or arrange for the holding of, the accessible securities through the IDPS; and
(b) Division 8 of Part 7.8 or Part 7.9 of the Act in relation to a financial product that is an equitable right or interest in an accessible financial product arising because of a holding, or an offer to hold or arrange for the holding of, the accessible financial product through the IDPS.

Note: This paragraph does not apply to the accessible securities or accessible financial products that are held through the IDPS.

Part 3—Declaration

8 Requirements for the operation of an IDPS
Part 7.6 of the Act (other than Divisions 4 and 8) applies in relation to an operator of an IDPS as if that Part were modified or varied by, in the appropriate position in Division 3 of that Part, inserting:

"912AD Requirements for the operation of an IDPS
 1.           This section applies to a financial services licensee that holds an Australian financial services licence authorising it to operate an IDPS.
           IDPS Guide
               1.           The licensee must, before entering into an IDPS contract with a person as a retail client, give the person an IDPS Guide.
               2.           The information included in the IDPS Guide must be worded and presented in a clear, concise and effective manner.
               3.           Subject to subsections (7) and (10), an IDPS Guide must include all information a person would reasonably require for the purpose of making a decision, as a retail client, whether to become a client of the IDPS, including such information that the person would reasonably require to:
                  (a) understand the nature of the IDPS being offered and any risks associated with participation in the IDPS; and
                  (b) identify the operators and custodians and the nature of their responsibilities and relationships; and
                  (c) understand the method and extent of all charges associated with the IDPS, including any right of the operator or any other person to recoup expenses from a client's assets; and
                  (d) understand any differences between the rights of a holder of accessible investments and the rights of a client of the IDPS in respect of accessible investments, including information on:
                     (i) cooling-off rights; and
                     (ii) voting rights; and
                     (iii) withdrawal rights under section 724 and section 1016E in relation to accessible securities and accessible financial products; and

                  (e) understand the consequences for a client if at any time the client has not engaged a person, or a person meeting particular requirements, to provide:
                     (i) financial product advice to