What is an intermediary service?
A proxy service that provides a service to another company, such as an agency or a company in a partnership, such that it can be used to conduct business between the two companies.
A proxy is not a legal person, so it is not allowed to engage in any legal activity.
A company that has no legal rights over an intermediary, such the company that is not directly involved in the transaction, is not an intermediary.
An intermediary is one that provides services to another, such a broker or a salesperson.
A broker is an individual or business that acts as a conduit between the parties.
A salesperson is a person who performs any of the following services: A person or entity that receives payments from a third party.
A person who is an agent of another.
A financial intermediary (also called a broker).
A broker must be registered and must be subject to the same restrictions as any other person or company.
A registered broker must not accept money or make a transaction without the consent of the person or party receiving the payment.
The terms and conditions of a broker’s licence and the requirements for the broker’s activities in relation to the broker are set out in the Broker’s Act 1998 (Cth).
A person must not offer a broker services without the broker first obtaining the consent from the person, or the broker must register as a financial intermediary.
A licensed broker is not required to act as a broker.
The Broker Standards Board (BSB) regulates the activities of brokers and the way brokers engage in the provision of financial services to consumers.
The BSB is the statutory regulator of financial intermediaries.
For more information on intermediaries, see our article on financial intermediation.
What is a proxy?
A broker or financial intermediary that provides proxy services to a company.
An entity or person that receives money or makes a transaction on behalf of a company without the express consent of that company.
The term proxy means any person or organisation that acts on behalf or in a capacity with a company, whether or not the person is directly involved.
For example, a broker acting on behalf a client or an agent acting on the behalf of the client.
A finance company that performs any act, such if it is providing investment banking services.
A trading agent.
A stockbroker, an investment broker or an advisor.
An agency acting for the benefit of a client.
What are the requirements of a proxy contract?
A financial transaction between two parties must be approved by a broker and must meet all the following requirements: A financial transfer must be authorised by the company to which the transaction is intended.
A statement from the company explaining why the transfer is being made must be signed by both parties.