Summary of key changes

This notice relates to the MDA Contract between you and AMP Financial Planning Limited (ABN 89 051 208 327, AFSL 232706) (“we”, “us”).

We are required under ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 to make some changes to your MDA Contract.  These changes will take effect on and from 1 October 2018.

Please read through the below summary carefully as it explains the upcoming changes to your MDA Contract.  A copy of the updated contract will be provided to you at your next annual review meeting with your Blueprint Wealth Financial Advisor.

If you do not want to proceed with these changes to your contract, you may terminate your MDA Contract.  You can do this by providing 2 days written notice to us.  In that case, we will no longer be able to provide MDA services (Limited Authority to Operate or LATO services) to you.

At the next annual review of your LATO service, your adviser will require you to sign the new MDA Contract.

Summary of key changes to your MDA Contract

  1. Clarification that we cannot invest your funds in unregistered schemes.
  2. ‘Our obligations’ section has been enhanced and includes:
  • Performing our obligations under the MDA Contract honestly and with the degree of care and diligence that a reasonable person would exercise if they were in our position in providing the LATO services to you.
  • Acting in your best interests in performing our duties in relation to the LATO service and, if there is a conflict between your interests and our interests in performing those duties, we will give priority to your interests.
  • Not using information, we have gained in providing the LATO services to you to gain an improper advantage for ourselves or any other person or to cause detriment to you.
  • Complying with:
    • the investment program set out in the MDA Contract unless otherwise agreed in writing by you.
    • Any representations about how we will provide the LATO services that are included in the Financial Services and Credit Guide which we have given to you which relates to the services unless otherwise agreed in writing by you.
  • Compensating you for any loss because of any act or omission of any agent or other person we engage in connection with the LATO service, other than an external custodian of your assets or an external adviser or a person acting on their behalf, as if the act or omissions were acts or omissions of ours.
  1. Further information around annual reviews, when they cannot be performed

We will review the suitability of the LATO and the Investment Program outlined for you at least every 12 months, unless you advise us that you do not want a review to be undertaken or you are unable to participate when we perform the annual review. In either of those cases, we will continue to make efforts to provide a review for a further 4 weeks and then terminate the LATO service if that review is not performed.

  1. We have included prominent warnings that identify the key areas of difference between MDA services and directly acquired financial products.
  2. The investment program in the MDA Contract includes a warning that the MDA Contract may not be suitable to you if you have provided us with limited or inaccurate information about your relevant personal circumstances or may cease to be suitable if those circumstances change.
  3. New provisions relating to the termination of the MDA Contract.

If the Contract is terminated, we must not exercise any discretion in relation to client portfolio assets and will notify the platform provider of the termination so that they can update their records.  You will need to authorise us to make any transactions on your portfolio once this MDA Contract is terminated. We are required to have and maintain a written policy setting out the steps we will take to ensure that this occurs, and a copy of this policy is available to you free of charge on request.

  1. Addition of a Fees and Costs section

The fees and costs relating to the MDA services, including how and when they are payable, are set out in the ‘Schedule of Fees’ in our Financial Services and Credit Guide (FSCG) and the ‘Cost of our advice’ section of the Statement of Advice.