If you are providing a managed discretionary account (MDA)
service, you need to ensure that your client is making a
well-informed decision in entering into the MDA service. This
checklist will help you verify that you are providing your clients
with sufficient understanding of the underlying risks associated
with an MDA offering.
Providing an FSG
A retail client must be provided with a financial services guide
(FSG) prior to entering into an MDA contract. This must include
sufficient information to enable a retail client to make an
informed decision about whether to enter into an MDA service. This
includes, amongst other things, information about any significant
risks associated with investing through the MDA service, a
statement that the MDA contract will include an Investment Program
and Statement of Advice that meet certain requirements, and any
other information that might reasonably be expected to have a
material influence on a retail client's decision about
