I’m looking at starting a live trading room, where traders will make live trade calls inside the room. All the Australian traders are RG146 trained and are AR’s. The question I have relates to over seas moderators. What is the requirement for the overseas moderators? Do they need to be trained? are they allowed to be a moderator?
If all the moderator does is ‘pass on, publish, distribute or disseminate’ financial product advice of traders within the trading forum, then the moderator should be able to take advantage of an exemption in the Corporations Regulations (Reg 7.1.31) which allows such activities without the need for the moderator (in this case) to be licensed or authorised. But if the moderator selects, modifies or otherwise exercises control over the content they won’t be able to take advantage of the exemption.
If the moderator itself provides any financial product advice on the forum, they will need to be licensed or authorised to provide that advice. And if any of the readers of the advice are retail clients, the moderator will also need to be RG 146 trained.