uTrade AlgosPrimarily, the Authorised Person (AP) acts as an agent, facilitating client trades through the trading member’s platform. To operate legally, the AP must register with the relevant stock exchange, demonstrating adherence to established market standards.
- A critical aspect of the AP’s role is the clear separation of responsibilities. They are strictly prohibited from issuing trade confirmations directly to clients or handling client funds. This safeguard is in place to protect investor interests and maintain financial integrity. The AP’s activities are conducted under the direct supervision of the trading member, ensuring that all trades comply with exchange regulations and internal policies.
- Compliance with regulatory guidelines is paramount. APs are expected to uphold stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) standards, as well as adhere to all other applicable rules and regulations. Compensation for APs typically comes in the form of brokerage-based commissions, directly linking their earnings to the volume and value of trades facilitated. This structure incentivizes the AP to build and maintain a strong client base while ensuring ethical trading practices.
- Furthermore, APs are held to the highest ethical standards. Any involvement in fraudulent or manipulative activities is strictly forbidden and can result in severe penalties, including termination of the agreement and legal action. The contractual agreement between the AP and the trading member will outline specific responsibilities, commission structures, and termination clauses, providing a clear framework for the professional relationship. This agreement will also outline the AP’s required level of training, and the level of support the trading member will provide.
If you have any questions or need further support, don’t hesitate to contact Share India’s support team. You can reach us at 18002030303 or email us at support@shareindia.com.