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Home Forums Australian Financial Services Licensing (AFSL) Forum Difference between a signal provider and PAMM?

This topic contains 1 reply, has 2 voices, and was last updated by  Megan Jaksa 8 years ago.

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  • #3008 Reply

    Hi,

    I was recently approached by an investments and securities firm to become a signal provider, I provide them with investor access to my account and they duplicate my trades. Is this legal? And can I provide signals this way to the general public without holding an AFSL? In the agreement it states that I’m not an authorized representative of the firm in question. In the agreement it states the following: 
    The Signal Provider will provide a service (Signal Service) of advising XXXXXXX regarding XXXXX Managed Discretionary Account Service to its wholesale clients.
    Your thoughts? 

    #3144 Reply

    Megan Jaksa
    Member

    Hi,

     

    Whether you need an AFSL depends on whether you are in the business of providing financial services in Australia within the definition in the Corporations Act. If so, you will then need to consider whether the signalling service falls within the definition of a financial service, such as “financial product advice”. If the answer to both these questions is ‘yes’, then you will most likely need an AFSL whether you provide signalling services to the investments firm or to the public.

     

    We are unable to provide a more definite answer without knowing a lot more about your circumstances. Contact our office if you want to seek legal advice.

     

    Author: Paul Derham
    Co-contributor: Megan Jaksa 

     

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Reply To: Difference between a signal provider and PAMM?

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