912AFAExternal MDA custodian to enter into a contract with each of the retail clients

912AFA External MDA custodian to enter into a contract with each of the retail clients

(1) The external MDA custodian must ensure that it has a written contract with each person to whom it provides custodial or depository services for MDA services as a retail client.

(2) The external MDA custodian must ensure that the written contract referred to in subsection (1) includes provisions to the effect that the external MDA custodian will in providing custodial or depository services to the person:

(a) perform its obligations under the contract honestly and with the degree of care and diligence that a reasonably person would exercise if they were in the external MDA custodian’s position; and

(b) not use information the external MDA custodian acquired through providing the services to gain an improper advantage for itself or any other person or to cause detriment to the client; and

(c) compensate the client for any loss because of any act or omission of any agent or other person (other than the MDA provider or a person acting on the MDA provider’s behalf) engaged in connection with the custodial or depository services for the MDA services that it contracts to provide as if the acts and omissions were acts or omission of the external MDA custodian; and

(d) comply with the requirements under sections 912AFA to 912AFE that apply to it.

(3) The external MDA custodian must comply with the provisions of the contract that paragraphs (2)(a) to (c) require.

Note: This obligation does not affect in any way the external MDA custodian's contractual obligation to comply with all the terms of the contract for the provision of custodial or depository services, nor any remedy a client may have for any breach of the contract.