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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