NSW Paying Somebody to Invest my Money

[jrocket002]

Hi Guys,

Just wondering about the legalities around having someone invest my money for me and charging a yearly commission. Just assume there is no risk at all (a hypothetical situation), would this be allowed? Or, would they have to acquire certain certification from ASIC in order to trade for me? I am aware that Financial Advisors need to get proper certification, but I wouldn't see this as financial advice, more just giving someone money to invest for you. This is just a question and I'm not really looking at doing this my self, but it is difficult to find much information on this. It would be great to know what would have to occur to make this legal, my rights as a client, and anything else that might be useful to know

Cheers

 

[Tim W]

No risk? No risk? No risk?
Such a hypothetical is too absurd and naive to even bother with.

Anyone doing this work needs an Australian Financial Services Licence.
If they have one, OK.

If they don't, then

• they are almost certainly acting unlawfully; and
• you should cut out the middle man, save yourself the commission; and
• flush your money down the toilet yourself.
  
  

 

[Rob Legat - SBPL]

And to add to what Tim has said, they will need the right AFSL. They come in a wide range of forms, depending on what they will be doing. One does not cover everything.