Post by PelicanPost by MaxI have made inquiries to a company called Share Express
(www.shareexpress.com.au) which offers an ability to buy shares traded on
foreign stock exchanges. They have said it is necessary for me to give
their company a power of attorney. What are the risks in doing this? If
I have given a company a POA, can they enter into a contract in my name
without telling me? Can I suddenly be $100K in debt due to a contract
they have entered into in my name?
It depends upon the power that you give the company under the POA. Given
your unfortunate history of dealing with third parties in a commercial
environment, the kind of transactions involved with the company will be
far beyond your comfort zone.
This is what the document says. It seems like they can trade shares in my
name, but can they cause me to become indebted for a large large amount of
money?
I hereby confirm that I would like my account set such that only my
attorney: Olive Financial Markets Pty Ltd
has the ability to deal on my account. I acknowledge and agree that this
means that I will not be able to place, amend or close trades on my
account myself.
Notwithstanding that all trades will be done by: Olive Financial Markets Pty
Ltd
on such terms as: determines in their reasonable discretion,
I agree that all transactions on my account carried out by: Olive Financial
Markets Pty Ltd
are done on my behalf and I accept liability for such trades. I understand
that my account will be set as "view only", meaning I can monitor all
activity conducted on my account by: Olive Financial Markets Pty Ltd
in order for example to track the performance of my account and/or to
monitor the available margin on my account.
Next page:
This Power of Attorney
is granted on the: day of 20
I/We (full name of client): (the "Client")
hereby appoint (name of attorney): (the "Attorney")
in respect of IG Markets Account Number (insert the account number for
the account(s) over which the Client wishes to grant power of attorney, if
known): (the "Account")
To be the Client's Attorney for the following purposes:
1. To operate the Account that the Client holds with IG Markets Limited (the
"Company") on the Client's behalf. The Client authorises the
Attorney to do all things that the Client itself can do in relation to the
Account, including, without limitation:
a) opening and closing the Account;
b) opening, editing and closing transactions done on the Account;
c) making payments to the Account and requesting withdrawals from the
Account, but note that the Company does not generally accept third
party payments so payments/withdrawals made by the Attorney on behalf of the
Client must be made to and from bank accounts belonging
to the Client;
d) do anything else that is reasonably necessary for the purposes of the
Client's dealing with the Company.
The authorisation given by the Client to the Attorney in the preceding
paragraph is subject
to the following terms:
1. Whether or not the Attorney may use its own discretion when dealing
on behalf of the Client under this Power of Attorney is a separate
matter to be determined between the Attorney and the Client. The
Company shall not be obliged to make any enquiry of the Client or
the Attorney as to this matter, and the Attorney agrees to act within
whatever power has been granted by the Client to the Attorney.
2. The Attorney acknowledges that the Account and all transactions
entered into on the Account are governed by the Company's
Customer Agreement and the Attorney agrees to comply with and
be bound by the Company's Customer Agreement when acting with
the Company on behalf of the Client.
3. The Attorney warrants to the Company that it holds, and will continue
to hold, the proper regulatory authorisation to perform its role as
Attorney, as set out herein. The Attorney indemnifies the Company
and keeps it indemnified against any loss, damage or expense
incurred by the Company as a result of the Attorney's breach of any
term (including a warranty) of this Power of Attorney.
4. The Client authorises the Company to accept all instructions given to
the Company by the Attorney, whether orally or in writing, in relation
to the Account. The Company shall not be obliged to make any
enquiry of the Client or of any other person before acting on such
instructions.
5. The Client ratifies and accepts full responsibility and liability for
all instructions given to the Company by the Attorney (and for all
transactions that may be entered into as a result) and will indemnify
the Company and keep it indemnified against any loss, damage or
expense incurred by the Company as a result of its acting on such
instructions. This indemnity shall be effective:
. whatever the circumstances giving rise to such loss, damage or
expense;
. whatever the knowledge, acts or omissions of the Company in
relation to any other account held by any other person or body
(including the Attorney) with the Company.
The Client further agrees that this indemnity shall extend to loss,
damage or expense incurred by the Company in reversing incorrect
or erroneous instructions submitted by the Attorney that result in a
transaction that must, for the protection of the Company or its other
Clients or for reasons of market integrity, be reversed.
6. The Company hereby notifies the Client that the Attorney is not an
employee, agent or representative of the Company and further that
the Attorney does not have any power or authority to act on behalf
of the Company or to bind the Company in any way. The Company
also notifies the Client that the Company may share a portion of
the commission, spread and funding that the Company charges the
Client with the Attorney.
7. Unless the Client informs the Company to the contrary, the
Company may from time to time communicate with the Attorney
directly regarding the Account. The Client consents to this and the
Attorney agrees to pass any such communications onto the Client
without delay. Communications made by the Company to the
Attorney are deemed to be received by the Client at the same time
at which they are received by the Attorney.
8. The Client consents to and authorises the Company to disclose
to the Attorney all information that the Company holds in relation
to the Account, including personal information that the Company
holds in relation to the Client. (Continued
IG Markets Limited, Full Power of Attorney, May 2013 IG Markets Limited is
incorporated in England. ABN 84 099 019 851. Australian Financial Services
Licence
No. 220440. Authorised Futures Dealer in New Zealand, Company No. 2249573.
Page 2 of 4
The authorisation given by the Client to the Attorney in the preceding
paragraph is subject
to the following terms (CONTINUED):
9. The Client acknowledges and accepts that, in providing an electronic
or online trading system to the Attorney, the Company has the
right but not the obligation to set limits, controls, parameters and/
or other controls on the Attorney's ability to use such a system.
The Client accepts that if the Company chooses not to place any
such limits or controls on the Attorney's trading, or if such limits or
controls fail for any reason, the Company will not exercise oversight
or control over instructions given by the Attorney and the Client
accepts full responsibility and liability for the Attorney's actions in such
circumstances.
10. If the Client wishes to revoke or amend this authorisation, it must
provide written notice of such intention to the Company. Any such
notice shall not be effective until two working days after it is received
by the Company (unless the Company advises the Client that a shorter
period will apply). The Client acknowledges that it will remain liable for
all instructions given to the Company prior to the revocation/variation
being effective, and that it will be responsible for any losses which may
arise on any transactions which are open at such time.
11. The Company, acting in its absolute discretion, may decide that it
will no longer accept instructions from the Attorney in relation to the
Account. If the Company does so, it must provide reasonable notice
to the Client. The Company need not specify its reasons for no longer
accepting instructions from an Attorney, but for the avoidance of
doubt such reasons may relate to the Attorney's personal dealings
with the Company.
12. This Deed shall be governed by and construed in accordance with
the laws of the State of Victoria and the parties irrevocably submit to
the jurisdiction of the Courts of the State of Victoria in relation to any
dispute arising out of this Deed.
13. This Deed may be executed in two counterparts, which together
will have the same effect as if the Client and Attorney had signed
the same document. The Client and/or the Attorney may deliver an
executed copy of this Deed to the Company by facsimile transmission
or by emailing a scanned copy of the executed Deed to the Company,
and such delivery shall have the same force and effect as delivery of an
original signed copy of this Deed.