Providing automatic trading tool to foreign company

[Private]

Hi afsl experts.

Does AFSL required to provide automatic trading tool/robot to a foreign company/Forex Broker which wants to trade:

1) their own money

2) organise PAMM for their clients.

i am private individual, created robotic system, they want to use my system to trade their own money or on behalf of other clients. nothing to do with Australia, all in Europe/Asia.

Could you please also provide the doc where this is clearly explained – providing tool to FOREIGN financial companies.

[David Court]

Hi,

 

Thank you for your question.

 

Generally, you will require an AFSL if you carry on a financial services business in Australia. Whether you are required to hold a license depends on a variety of factors.  For example: Are you going to be operating the trading tool/robot or the PAMM for the foreign company? Will any Australian clients be involved?

 

There are currently too many unknowns in relation to your product and your business for us to give you a definitive answer. Please contact our financial services team if you wish to discuss further.

 

Authors: Frank Li (Law Clerk) and David Court (Partner)

 

 

[Privare]

Thanks, David. Nothing to do with Australia or Australian clients. The company is overseas (Eastern Europe forex broker), and Pamm clients are overseas. It should be clearly stated somewhere in Afsl docs which I am struggle to find And asking your expert help. Do you know the answer and can point to relevant doc?

Of cause if any Australian-specific services are to be provided in future, you will be the first point of contact – the forum is good.

 

[Matthew Twomey]

Hi,

ASIC’s Regulatory Guide 121 sets out some of the exemptions from holding an AFSL for overseas businesses. Without us knowing more about your proposed operations, we cannot give you any specific advice about whether or not your business would require an AFSL. Please contact our financial services team if you wish to discuss further.

Author: Matthew Twomey (Lawyer)

[Private]

Hi Matthew, my question is different from what you replied for – I am not ‘overseas business’ providing services in Australia – exact opposite.

Please confirm that AFSL regulation is not applicable in case if Australians provide trading software to some fund in Spain or Greece.

i think this is simple question and I appreciate simple answer.

[Matthew Twomey]

Hi,
Although we understand that your question may seem simple, there are a number of different considerations involved.

The Appendix to RG 121 sets out a range of circumstances in which an AFSL is not required. It is not limited to overseas businesses.

We are unable to discuss this matter with you further without knowing full details of your proposed business model. If you wish us to advise in relation to your personal business circumstances then you would first need to enter into a costs agreement with us pursuant to our legal practising rules. Please contact us to discuss further.

Author: Matthew Twomey (Lawyer)

[Author]

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