(1) The licensee must give to each person to whom it provides MDA services as a retail client the following information:
(a) particulars of all transactions effected as part of the MDA services provided to the person during each 3 month period (reporting period) ending on each quarter day;
(b) the particulars of, and a reasonable valuation of, each of the client portfolio assets of the person at the end of the reporting period;
(c) as at the beginning and the end of the reporting period, the total value of the client portfolio assets of the person and the total value of liabilities that the person has that were incurred in the operation of the MDA services;
(d) all revenue and expenses including fees and charges relating to the MDA services.
(2) The licensee must give the information referred to in subsection (1) to the person by:
(a) giving electronically or otherwise quarterly reports for each reporting period within one month after the end of the period; or
(b) providing electronic access to the information on a substantially continuous basis if:
(i) the client has agreed to access that information electronically instead of being given quarterly reports; and
(ii) the licensee has no reason to doubt that the client can electronically access this information on a substantially continuous basis; and
(iii) the information covers a period of at least 12 months to a time specified in the information that is no more than 48 hours (excluding hours on a day that is not a business day) before the time of access.
(3) If, for the purposes of subsections (1) and (2), the licensee gives electronic access to information during a reporting period instead of giving a quarterly report:
(a) the information that was displayed at the quarter’s end for the reporting period that purports to be the information required under subsection (1) must remain readily accessible to the client through the same facility by which electronic access was given during the reporting period until 1 July second occurring after the start of the reporting period; and
(b) the facility on which the information remains accessible must display to the person a statement to the effect that only information displayed at the quarter’s end will be considered by the auditor in providing its annual report to clients receiving MDA services relating to the information provided electronically.
(4) The licensee must also give the following documents to each person to whom it has provided MDA services as a retail client during each year ending 30 June within three months after the end of the year:
(a) a summary of the transactions that occurred as part of the MDA services provided to the person during the year including the nature and purpose of those transactions and if the person has been given quarterly reports under paragraph (2)(a) a statement that the person may request a copy of any quarterly report relating to the year; and
(b) a report of a registered company auditor that contains no statement that has or purports to have the effect of excluding or disclaiming liability to the client as a user of the report and states in relation to the provision of MDA services by the licensee:
(i) the auditor’s opinion whether internal controls and other procedures of the licensee and any other relevant person acting on behalf of the licensee were suitably designed and operated effectively in all material respects to ensure that:
(A) summaries given under paragraph (a) for the year and quarterly reports for each quarter during the year that have been given under paragraph (2)(a); and
(B) information made accessible electronically under paragraph (2)(b) in respect of the year at each quarter’s end in the year;
have not been materially misstated; and
(ii) the auditor’s opinion whether the aggregate of assets, liabilities, revenue and expenses shown in the summaries provided under paragraph (a) by the licensee for the year have been properly reconciled in all material respects to the corresponding amounts shown in reports prepared by the holder of any client portfolio assets (or if the holder is the client, by the licensee) that have been audited by the auditor or another registered company auditor who is independent of the holder and the licensee; and
(iii) the auditor’s statement as to whether or not the auditor has any reason to believe that:
(A) any summary under paragraph (a) for the year or any quarterly report under paragraph (2)(a) for a reporting period in the year; or
(B) any information accessible electronically under paragraph (2)(b) in respect of the year at each quarter’s end in the year;
has been materially misstated; and
(c) if any of the client portfolio assets are held by an external MDA custodian or a person acting on behalf of an external MDA custodian, a report of a registered company auditor that contains no statement that has or purports to have the effect of excluding or disclaiming liability to the client as a user of the report and states in relation to the provision of custodial or depository services by each external MDA custodian or any person acting on its behalf that holds client portfolio assets that relate to MDA services of the licensee, the auditor’s opinion as to whether internal controls and other procedures of the external MDA custodian and any other relevant person acting on behalf of the external MDA custodian were suitably designed and operated effectively in all material respects to enable the licensee to rely on information provided by the external MDA custodian to prepare:
(i) the summaries given under paragraph (a) for the year and the quarterly reports for quarters during the year that have been given under paragraph (2)(a); and
(ii) information that is made accessible electronically under paragraph (2)(b) in respect of the year at each quarter’s end in the year,
without material misstatement; and
(d) either:
(i) a Statement of Advice of the licensee or an external MDA adviser which includes personal advice on whether the MDA contract for the person is suitable for the person’s relevant personal circumstances; or
(ii) statements:
(A) that a Statement of Advice which includes advice on whether the MDA contract for the person is suitable for the person’s relevant personal circumstances at a specified date from either the licensee or an external MDA adviser has been given to the person; and
(B) that a copy of the Statement of Advice is available from the licensee free of charge on request; and
(C) of the basis for the advice in the Statement of Advice; and
(e) if the Statement of Advice referred to in subparagraphs (d)(i) or (ii) includes advice that the MDA contract for the person is not suitable for the person’s relevant personal circumstances, whether and if so how and when changes to the MDA contract have been made or if not whether the licensee offers to make them and if so whether the advice states that those changes would have made the MDA contract suitable.
(5) An auditor providing an opinion or statement required by paragraph (4)(b) may, if a report under paragraph (4)(c) contains the opinion that the internal controls and other procedures of an external MDA custodian are as stated in paragraph (4)(c), assume that those internal controls and other procedures are as stated in paragraph (4)(c) unless the auditor is aware that is not true.
(6) Paragraph (1)(a) and paragraphs (4)(a) and (b) do not apply if:
(a) all transactions effected under the MDA services provided to the person are effected by the licensee giving instructions to a regulated platform operator and all the client portfolio assets are held through one or more regulated platforms under a custodial arrangement between the regulated platform operator and the licensee or the person; and
(b) either:
(i) transaction reports for the transactions have been or will be given to the person or the licensee by the regulated platform operator; or
(ii) for a regulated platform that is an IDPS or IDPS-like scheme—electronic access to the following information has been made available to the client or the licensee by the regulated platform operator on a substantially continuous basis:
(A) for an IDPS—the information referred to in subsection 912AD(30) (as notionally inserted by ASIC Corporations (Investor Directed Portfolio Services) Instrument 2023/669); and
(B) for an IDPS-like scheme—the information referred to in subsection 1013DAB(12) (as notionally inserted by ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/668); and
(c) if the transaction reports are given to the licensee, the licensee gives the reports to the client as soon as reasonably practicable; and
(d) as soon as reasonably practicable after a transaction report is given by the regulated platform operator or the client to the licensee, the licensee reviews the report and notifies the client in writing of any error or omission in the report relating to any transaction, asset or liability, or the absence of any transaction, asset or liability, in the report that the licensee believes was effected or held in the relevant period; and
(e) if electronic access to information is made available to the licensee in accordance with subparagraph (b)(ii), as soon as reasonable practicable after each quarter day, the licensee reviews the information in relation to the reporting period ending on the quarter day and notifies the client in writing of any error or omission in the information relating to any transaction, asset or liability, or the absence of any transaction, asset or liability, in the information that the licensee believes was effected or held in that period.