Australian Financial Services Licensing (AFSL) Forum

#3102 Reply
Making sure the PAMM provider has an AFSL helps you manage one risk – but your AFSL needs to cover the right activities, too.
In order for you to authorise your contact to advice on PAMMs you would first need to have managed investment scheme and/or managed discretionary account authorisations (see our initial response) under your license.
Further, as an authorising licensee, you would be legally responsible for the conduct of the authorised representative. There are lots of other risks you would want to manage (eg. via a well drafted authorised representative agreement and by conducting legal/compliance due diligence on the authorised representative).
Author: Chris Lim
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