Financial Markets Conduct Regulations 2014

194 Condition for DIMS providers to disclose if service is wholesale

(1)

A market services licence for a provider of a DIMS that is not a retail service is subject to a condition that the provider must not acquire or dispose of a financial product under the service for an investor, or accept an investment authority from an investor, unless a warning statement has been provided to the investor before—

(a)

the provider acquires or disposes of a financial product under the service for the investor; or

(b)

the investor grants an investment authority to the provider.

(2)

A warning statement must be provided by giving it to the investor or delivering or sending it to the investor’s address.

(3)

The warning statement must—

(a)

contain a statement to the effect that—

(i)

the service is not a retail service:

(ii)

the service is not covered by the licence (and, accordingly, the protections and requirements of the Financial Markets Conduct Act 2013 may not apply); and

(b)

if it is included in another document, be in a prominent position in that document.