432AMeaning of discretionary investment management service and related terms

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

2. A—
   1. decides which financial products to acquire or dispose of on behalf of an investor (B); and
   2. in doing so, is acting under an authority granted to A to manage some or all of B's holdings of financial products; or
3. A gives 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).

4. 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.

5. 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.