Do I need a Power of Attorney to advise clients located overseas?
We’re not aware of any changes that mandate a POA for an overseas client.
Where this requirement may come into play, is through the product manufacturer. In particular some products may require clients to be in Australia at the time of application or have other residency requirements. This would be specified in the PDS.
Additionally, where you are dealing in OTC derivatives to retail clients located overseas, some jurisdictions restrict or prohibit provision to retail clients (i.e. Europe, Japan, North America and China).
Some other considerations where overseas clients are concerned, which we thought we would point out:
- you may not provide advice or services to any client residing in a high risk or non-cooperative jurisdiction as determined by the Financial Action Task Force.
- funds to be invested should be drawn from an Australian Bank Account.
- you must verify the client’s identity prior to arranging for a designated product or service.
- you can not solicit/advertise or otherwise promote their services in a jurisdiction other than Australia.
- where an overseas client is referred to you, the client must initiate the contact with the advisers.