Jan has been managing her own portfolio of $500,000 of direct equities and managed funds. She has decided that she would rather use her spare time to improve her skills as an artist and has engaged you to take over the management of her portfolio. She expects regular electronic reporting, a meeting every six months and updates when there are financial markets changes that impact her portfolio. She is very keen to have appropriate taxation reporting.

1) Explain the operation of a discretionary investment management services (DIMS) to Jan including the role of documentation and what rights the client has under a standard DIMS agreement.