Back Custom print Link Text Only Rich Text Print

  • Client Agreements and On boarding

    • DA-1.3.1

      Further to the requirements under BC-2.4 relevant to retail clients, the licensees providing digital financial advice must agree in writing the terms of business with their clients and ensure that the following are stipulated:

      a) the full scope of the digital financial advice;
      b) the basis for providing digital financial advice including but not limited to methodologies used for the algorithm,
      c) the fees, charges or commissions relevant to the advice being offered;
      d) the specific conditions or triggers and the processes relating to suspension or discontinuation of the use of the digital financial advice client facing tool and possible use or replacement of human judgement;
      e) changes to the algorithm, the key input parameter, assumptions underlying the digital financial advice client facing tool;
      f) the dispute resolution processes are available to the clients if they wish to make a complaint; and
      g) terms on how clients can withdraw from the arrangement and any associated costs.
      Added: April 2019

    • DA-1.3.2

      The terms of business referred to in Paragraph DA-1.3.1 may be presented in a digital format and customer consent may be obtained in digital format subject to complying with relevant law/s.

      Added: April 2019

    • DA-1.3.3

      At the time of on boarding clients and prior to the signing of client agreements, the licensees must:

      (a) explain the scope of the advice (i.e. what advice is being offered, any restrictions or limitations, and any relevant matters not forming part of the advice);
      (b) actively demonstrate to the clients that the advice they are seeking is within the scope of what is being offered;
      (c) explain the methodological approaches to the strategy and the algorithms underlying it;
      (d) inform clients if the licensee believes that the digital financial advice is not appropriate to him based on the understanding of the client profile and objectives;
      (e) inform the clients on the likely benefits and risk resulting from the digital financial advice; and
      (f) ensure that the client understands that any performance numbers presented are hypothetical projections of return and that actual performance of the portfolio may vary from initial projections.
      Added: April 2019

    • DA-1.3.4

      Licensees are not required to disclose the detailed methodology itself, but rather the approach utilised in designing the algorithm should be described.

      Added: April 2019