Author: Livia Tay, MY
Last Updated: April 8, 2024
This chapter defines the relationships and responsibilities between the Client, third-party service providers (such as Introducers of Business or Fund Managers), and the Company. It outlines how managed accounts are handled, the limitations of liability, and client obligations when appointing a third party.
Introducer of Business, Fund Managers, and Third Party Service Providers
1. Roles and Responsibilities
1.1. Clients may be referred to the Company by:
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An Introducer of Business
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A Fund Manager
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A Third Party Service Provider (e.g., trading platform, course provider)
1.2. The Company is not responsible for any agreements or arrangements between the Client and these third parties.
1.3. The Company does not endorse, verify, or guarantee the accuracy of information or services provided by these third parties.
1.4. These third parties may not be regulated by any authority. Clients are responsible for evaluating their legitimacy and services before engagement.
2. Fees and Commissions
2.1. Agreements with third parties may result in additional costs for the Client.
2.2. The Company may pay fees or commissions to third parties from the Client’s account.
2.3. Compensation may be per-trade and could include mark-ups on spreads.
2.4. Frequent trading may lead to significant commissions or fees, which may not necessarily align with profits.
2.5. The Company acts solely as a custodian and broker—not responsible for the amount of fees paid to third parties.
3. Access to Client Information
3.1. Engaging a third party gives them access to the Client’s personal and trading information.
3.2. These third parties may themselves be introduced to the Company by others, who may also receive compensation based on the Client's activity.
Managed Account
4. Authorised Third-Party Account Management
4.1. The Company may allow a third party (Attorney) chosen by the Client to manage the Client’s account, including:
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Opening/modifying/closing trades
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Managing account preferences
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Handling disputes or complaints
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Transferring funds between accounts
4.2. Clients must submit a Limited Power of Attorney (LPOA) in an acceptable format to enable this.
5. Company Rights and Client Responsibilities
5.1. The Company may, at its discretion, require the Client to resume control of their account at any time.
5.2. The Client must reimburse the Company for any losses caused by:
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Unauthorized actions by the Attorney
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Breaches of the LPOA
5.3. Attorneys may transfer funds only to the Client’s originating account.
6. Instructions and Liability
6.1. The Company will act on instructions from the Attorney without needing confirmation from the Client.
6.2. The Client accepts full responsibility for:
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All instructions and trades made by the Attorney
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Any resulting losses, errors, or expenses
6.3. The Company is not responsible for erroneous instructions or trades by the Attorney but may reverse such transactions if required to protect the Company or maintain market integrity.
7. Attorney Limitations
7.1. Attorneys are not employees or representatives of the Company.
7.2. Communications sent by the Company to the Attorney are considered as received by the Client.
7.3. Submission of an LPOA grants the Company permission to share account-related information with the Attorney.
7.4. The Company may apply controls to limit the Attorney’s use of trading platforms but is not required to do so.
8. Revocation of Authority
8.1. To revoke or change an Attorney’s authority, the Client must send written notice to the Company.
8.2. Revocation is only effective once confirmed by the Company.
8.3. The Client remains liable for all actions taken before revocation becomes effective and any losses on open trades at that time.
Clients must exercise caution when appointing or working with third parties. While such arrangements can be beneficial, they involve financial responsibilities and risks. The Company remains a neutral broker and custodian, not accountable for external agreements or the actions of Attorneys.