New registration requirements rule out white labelling
A new system of registering business names has rendered white labelling almost impossible, a financial services legal firm believes.
Under new reporting requirements, product providers who use another venture’s business name must record the name on the Australian Securities and Investments Commission’s (ASIC’s) business name register.
However, the new system stipulates only one party is allowed to be registered under a business name, which makes white labelling - the process of allowing another business to operate under the same name - very difficult.
The Fold Legal has asked ASIC to investigate the requirements.
“There are a few exceptions to the new rules, but none apply to white labelling,” The Fold Legal’s senior solicitor Jaime Lumsden Kelly said.
“The only way around it that we can currently think of is to register the business name as an unincorporated joint venture with the product provider, however this is an imperfect solution at best.”
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
