392 Meaning of discretionary investment management service and related terms

(1)

In this Act, a person (A) provides a discretionary investment management service if—

(a)

A—

(i)

decides which financial products to acquire or dispose of on behalf of an investor (B); and

(ii)

in doing so is acting under an authority granted to A to manage some or all of B’s holdings of financial products; or

(b)

A provides financial advice in the ordinary course of, and incidentally to, providing a discretionary investment management service under paragraph (a) (for example, as to the appropriate scope of an investment authority).

(2)

In determining whether A has an authority under subsection (1)(a)(ii), it does not matter if B has the right to be consulted on, or to countermand, A’s decisions.

(3)

In this Act,—

DIMS licensee means a person that acts as a provider of a discretionary investment management service under a licence under this Part

investment authority means, in relation to a discretionary investment management service, the authority granted by an investor to manage some or all of an investor’s holdings of financial products under the service

provider of a discretionary investment management service means a person who is in the business of providing a discretionary investment management service.