Stake Obtains New Australian Financial Services License
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Stake Obtains New Australian Financial Services License
Stake, a widely-used trading application that became well-known as Australians looked for affordable methods to invest in U.S. firms like Tesla (TSLA), is excited to reveal a significant achievement.
Beginning on July 29, 2024, Stake will begin operating under its very own Australian Financial Services Licence (AFSL). This marks an exciting advancement in its mission to assist Australians in managing and expanding their wealth.
Quick Read
- Stake will begin operating under its own Australian Financial Services License (AFSL) starting July 29, 2024.
- Change from serving as an authorized representative of Sanlam Private Wealth Pty Ltd and Airwallex Pty Ltd.
- There are no significant changes for customers; funds will be entrusted to Stakeshop AFSL Pty Ltd.
- Revised Terms and Conditions and Financial Services Guide taking effect on July 29, 2024.
What is an Australian Financial Services License (AFSL)?
An AFSL is a license issued by the Australian Securities and Investments Commission (ASIC) that permits the holder to operate a financial services business within Australia.
To secure an AFSL, firms are required to prove they adhere to rigorous standards in aspects like financial resources, compliance, and internal training.
What Has Been Stake’s Mode of Operation So Far?
So far, Stake has offered financial services as an authorized representative of Sanlam Private Wealth Pty Ltd and Airwallex Pty Ltd, both of which possess their own AFSLs.
Starting Monday, July 29, Stake will begin providing services as an authorised representative of Stakeshop AFSL Pty Ltd (AFSL no. 548196), another entity within the Stake group of companies.
What Are the Implications for Stake Users?
For the majority of users, moving to Stake’s own Australian Financial Services License (AFSL) will be straightforward. However, there will be an alteration in the way AUD customer funds are managed. By legal requirement, all customer funds must be held in trust by an AFSL holder, usually at a bank.
At present, the AUD funds belonging to Stake customers are held in trust by Sanlam with an authorised deposit-taking institution (ADI). After the transition, these funds will be managed in trust by Stakeshop AFSL Pty Ltd, in a new account with the same ADI.
Customers will still have their individual account numbers and BSBs, enabling them to handle their finances as they normally do.
Where can you find additional information?
Stake has revised its Terms and Conditions along with the Financial Services Guide, with these changes set to be enforced starting July 29, 2024. Customers with inquiries or needing additional information are advised to reach out to Stake directly.
This change highlights Stake’s dedication to offering strong and dependable financial services, thereby reinforcing its status as a top trading platform for Australian investors.
Additional details can be found at https://hellostake.com/au/legal/financial-services-guide-from-29-july-2024.
If you’re not currently a Stake customer, you can sign up through our referral link – https://hellostake.com/r/jasonc456
Summary
Obtaining its own Australian Financial Services Licence (AFSL) is a major achievement for the Stake trading app. This development improves Stake’s capability to independently deliver financial services and assures the secure management of customer funds. The transition is designed to be smooth for users, with no major adjustments to their accounts or how the platform operates. This advancement reinforces Stake’s dedication to offering dependable financial services.
Q: What does AFSL stand for?
A:
A licence known as the Australian Financial Services Licence (AFSL), issued by the Australian Securities and Investments Commission (ASIC), permits companies to operate financial services businesses within Australia. This licence enforces strict standards across various domains like financial resources, regulatory compliance, and internal training.
Before acquiring its own Australian Financial Services License (AFSL), how did Stake function?
A:
Prior to acquiring its own Australian Financial Services License (AFSL), Stake functioned as an authorised representative of Sanlam Private Wealth Pty Ltd and Airwallex Pty Ltd, both of which possessed their own AFSLs. Consequently, Stake delivered financial services under the regulatory framework of these firms.
Will this transition result in any changes for customers?
A:
The switch to Stake’s own AFSL will be mostly smooth for customers. The main difference will be in the management of AUD customer funds. These funds will now be held in trust by Stakeshop AFSL Pty Ltd at the same authorized deposit-taking institution (ADI), ensuring ongoing consistency.
Where can customers look for further details regarding these updates?
A:
Customers can obtain additional details in Stake’s revised Terms and Conditions and Financial Services Guide, which will be effective from July 29, 2024. For any questions or more information, they may reach out to Stake directly. More information can be found on Stake’s Legal Information Page.
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