12 When person provides discretionary investment management service

(1)

A person (A) provides a discretionary investment management service if A—

(a)

decides which FMCA financial products to acquire or dispose of on behalf of a client (B); and

(b)

in doing so is acting under an authority granted to A (or A’s employer or principal) to manage some or all of B’s holdings of FMCA financial products.

(2)

In determining whether A has that authority, it does not matter if B has the right to be consulted on, or to countermand, A’s decisions.

(3)

For the purposes of this Act, the authority referred to in subsection (1)(b) is the investment authority.

Section 12: substituted, on 1 July 2010, by section 10 of the Financial Advisers Amendment Act 2010 (2010 No 40).

Section 12(1)(a): amended, on 1 December 2014, by section 17(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 12(1)(b): amended, on 1 December 2014, by section 17(1) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).

Section 12(3): inserted, on 1 December 2014, by section 17(2) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).