1.
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In addition to all requirements in the Market Conduct Rulebook, prior to entering into any Client Agreements to provide VA Transfer and Settlement Services, VASPs must disclose to clients and potential clients all material risks associated with using Virtual Assets in connection with VA Transfer and Settlement Services, including but not limited to—
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a.
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Virtual Assets transactions may be irreversible, meaning that any losses suffered because of fraud or an accidental or unauthorised transaction may not be recoverable; |
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b.
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Virtual Assets transactions may not be finalised until recorded on the relevant DLT for the Virtual Asset, which may not be the time or date that the client initiates the transmission or transfer, and/or settlement; and |
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c.
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Virtual Assets may experience technical difficulties unrelated to actions by the VASP that may in turn impact the client’s ability to access or use the Virtual Assets for transmissions or transfers, and/or settlements.
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2.
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In addition to all requirements in the Market Conduct Rulebook, prior to entering into any Client Agreements to provide VA Transfer and Settlement Services, VASPs must disclose all the relevant terms and conditions associated with the VA Transfer and Settlement Services, including, as applicable, the following—
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a.
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a fee schedule listing—
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i. |
all fees and charges and how they will be paid; |
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ii. |
how the fees and charges are calculated, if they are not set in advance; and |
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iii.
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when they will be assessed;
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b. |
information about execution times; |
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c.
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whether the client has a right to stop or amend a pre-authorised transmission or transfer, and/or settlement, or revoke authorisation for a transmission, transfer or settlement, including the required procedure to initiate stop-settlement orders, or revoke the authorisation for a subsequent transmission or transfer, and/or settlement; |
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d.
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the client’s and the VASP’s respective liabilities for any unauthorised, mistaken, or accidental transmission or transfer, and/or settlement; |
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e. |
general error-resolution rights that apply to transmission or transfer, and/or settlement; |
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f.
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the client’s right to receive periodic account statements and Virtual Asset valuations from the VASP; |
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g.
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the client’s right to receive a receipt or other evidence of a Virtual Asset transmission or transfer, and/or settlement; and |
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h.
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to the extent relevant—
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i.
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any ability of the VASP to vary unilaterally the terms of any contract with the client for the provision of VA Transfer and Settlement Services, and client’s right to terminate such contract. If the client is a Retail Investor, terms and conditions shall specify—
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1.
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that any notice to vary unilaterally shall be provided by the VASP to the client no later than sixty [60] calendar days before the date on which any change is due to take effect; and |
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2.
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that the client must have a right to terminate the contract without charge at any time before such a change takes effect, which the VASP shall also communicate at the time of giving notice. |
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In respect of any other type of client, the VASP and the client may agree to waive such requirements; and
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ii.
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any ability of the VASP and/or client to terminate a contract for the provisions of VA Transfer and Settlement Services. If the client is a Retail Investor, the terms and conditions shall—
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1.
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specify that the client may terminate the contract at any time unless the client and the VASP have agreed a notice period of no more than thirty [30] calendar days; and |
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2.
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that the VASP may terminate a contract by giving at least sixty [60] calendar days’ notice.
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3.
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VASPs providing VA Transfer and Settlement Services may not exclude, or attempt to exclude, any form of actual or potential liability in respect of the VA Transfer and Settlement Services by virtue of having provided the disclosures required under this Rule II.D of this VA Transfer and Settlement Services Rulebook.
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