MANDATORY INFORMATION FOR CLIENTS OF TRADES SERVICE
Leads Capital inc.
March 15, 2017
1 INFORMATION ABOUT THE COMPANY AND ITS SERVICES
Leads Capital inc.(hereinafter the Company) is company incorporated according to the laws of the Republic of Vanuatu, Registration number 14771, having its registered office at Govant Building BP 1276, Port Vila, Vanuatu.
Investment services and activities that the Company provides or perform services of reception and transmission of orders in relation to one or more financial instruments and execution of orders on behalf of Clients.
- RELATIONS AND COMMUNICATION WITH CLIENTS
The Client Communication with the Company, receiving documents and other information from the Company takes place in the English language.
The Client may, unless otherwise specifically agreed, send all instructions, orders and notifications, and exercise all other forms of communication with the Company in connection with the investment services or activities or ancillary services that may have been agreed and stipulated in the contract concluded between the Client and the Company (hereinafter referred to as the Contract), to relevant address and/or contacts in the Company:
Leads Capital inc.
Govant Building PB 1276, Port Vila, Vanuatu
The Company may, unless otherwise agreed, send and give to the Client all the certificates, notices, reports, calls and exercise all other forms of communication in connection with the investment services or activities, or with extra services arranged between the Client and the Company at the address or phone numbers that the Client has submitted.
When exercising any form of communication with the Client, the Company may record or in any other way note overall or just individual communication, and about the fact of taping or recording the Client does not have to be warned prior to the start of each recording.
Way of communication between the Client and the Company when giving and receiving the order or instructions is regulated by the contract.
The Client shall immediately notify the Company about the changes of address and other information relevant to the notification, as well as for the execution of the Company’s obligations when providing investment and ancillary services or investment activities.
The Company will notify the Client of all the services it has provided, including costs associated with the transactions and services undertaken on behalf of the Client.
2.1 PROTECTION OF THE ASSETS OF CLIENTS
Assets of the Clients are not owned by the Company, are not included in the assets of the Company and the liquidation or bankruptcy estate, nor can they are subject to execution in respect of claims against the Company. The Company maintains its records and accounts in a way that allows the delay at any time to distinguish assets held for one Client from the assets of other Clients and assets of the Company.
The Company in its internal continuous controls ensure adequate transfer of assets to Clients in a way that always, when possible, each instruction for transfer of property, and financial assets and financial instruments of the Client to a third party, are carried out by two persons with appropriate authorization, one of which inputs instruction and the other is approved or confirmed.
The Company reports the Client about the execution of Clients the same business day, when possible, or no later than the following working day after the execution of the transaction to the Client in a way, or one of the agreed methods of communication with the Client.
No matter of received reports of the Company, Client may at any time request from the Company any information on the status, turnover, individual account, portfolio or account issued belonging to the Client’s account with the Company, that the data is updated immediately after the execution of the trading for the Client.
By signing the Agreement with the Company Client among other things confirms:
- the Company has submitted all the necessary information pursuant to the Act, Rules and Regulations, and that all information received are understood and accepted, the Company has given all true information about itself, and the Client accepts that the Company has estimated appropriate and all suitable assigned services and financial instruments with respect to those services with which the Client can do business with the Company.
- A statement of the Company that the Company by signing the Agreement confirms to have introduced the Client with all the risks of investing in the capital market in accordance with the Rules and Regulations, and declares that the Client will be treated in accordance with the classification.
- that he understood the assigned classification of the Client, and he accepts the Best interest and order execution policy and Terms and Conditions Company
ADDITIONAL INFORMATION ON THE PROTECTION OF ASSETS OF CLIENTS:
In the case of the debt of the Client, the Company is obliged to provide debt settlement of the Client who has a debt in a way that does not use the resources of other Clients for debt settlement. The Company may receive the consent of the Client to liquidate its funds to settle the debts of other Clients, to ensure all Clients the safe disposal of their free agents. The Company assumes the obligation to provide information to all Clients in case that the Company cannot provide Clients access to their funds.
The Company cannot enable the disposal, payment or trading with Clients assets which the Company holds for the Client, without the express consent of the Client for the use of his assets. If the Client wants that, his assets can be used for the use and lending to other Clients or to the Company.
The Client is not bound in any situation to the Company or other Clients to the disposal of his assets.
2.2 MANAGING CONFLICT OF INTEREST
The management of conflict of interest in the Company is regulated by the rules to prevent conflicts of interest. If the Company is in business with Clients and finds a conflict of interest, the Company will inform the Client about the conflict of interest, and receive the Client’s instruction on conflict of interest.
If the Client’s orders are in a conflict of interest with the Company’s orders, the Company will inform the Client about it.
The Company will while giving recommendations to buy or sell a financial instrument to the Client reveal its position in a given financial instrument, if any.
The Company will use its control functions to operate in situations of conflict of interest in a way that will make steps to protect each Client of the Company and to prevent to the management of conflicts of interest the harmful effects of the same, if applicable.
The Company will in situations of conflict of interest where it cannot eliminate the harmful effects of conflicts of interest, eliminate potential harmfulness in a way that it will not receive and implement trading with the Client that because of the conflict of interest cannot be implemented without damaging or the Client who is in conflict of interest or other Clients of the Company. The Company will discuss relevant situation in writing the Client.
2.3. AVAILABILITY OF INTERNAL ACTS AND DELIVERY OF INFORMATION OF THEIR AMENDMENTS
Documents: all information, List of fee charged and the internal regulations of the Company shall be given to the Client when signing the contract and other internal regulations, or information with which the Company is obliged to meet the Client, are available when signing the contract with the Company at the Company’s place and on the Company’s website.
The Company believes that the Clients are informed of any modification of those documents if each revised document is published on the Company’s website www.trades.com.
3 CLASSIFICATION OF CLIENTS
The Company is – with regard to knowledge, experience, financial situation and investing goals of the Client – required to classify the Clients into categories of small and professional investors. The Company can still classify individual professional investors to the eligible counterparty, unless they meet the requirements.
3.1 SMALL INVESTORS
The Company will automatically classify and treat as small investors all natural and legal persons and entities who cannot be considered professional clients or eligible counterparty.
3.2 PROFESSIONAL INVESTORS
Clients who are considered professional investors
Professional investors are considered to be Clients who possess the experience, knowledge and expertise of independent investment decisions and properly assess risks that are associated with it.
Entities that are considered professional Clients in providing investment and ancillary services in relation to all financial instruments are as follows:
- The subjects that are acting in financial markets and which are subjected to authorization and/or supervision of the competent regulatory authority:
– Investment firms,
– Credit institutions,
– Other financial institutions with the approval to operate issued by the competent authority in accordance with the legislation governing their work;
– Insurance companies,
– Undertakings for joint investment and their management companies (investment funds),
– Management of pension funds and pension funds,
– Pension insurance companies,
– Dealers in goods and commodity derivatives,
– Local companies and
– Other institutional investors whose main activity is not covered by relevant section, and subject to approval or control the operation of the financial market.
- Legal persons compared to the previous financial year for which the latest available audited financial statements or unaudited financial reports submitted regularly to the relevant supervisory authorities if there is no obligation of audit in accordance with applicable regulations, and meet at least two of the following conditions:
– Total assets amount to at least 20 million EUR,
– Net income in the amount of at least 40 million EUR and
– Capital amounting to at least 2 million EUR.
- National and regional governments, public bodies that manage public debt, central banks, international and supranational institutions such as the World Bank, International Monetary Fund, European Central Bank, European Investment Bank and similar international organizations.
- Other institutional investors whose main activity is to invest in financial instruments, which are not subject to approval or supervision of work in the financial market by the competent authority, including entities established for the purpose of securitization of assets.
The above mentioned entities and legal persons the Company will automatically be classified and treated as professional investors, if they meet the requirements that are specific for that categorization.
Clients who may be treated as professional investors
In addition to Clients who are considered professional investors, the Company may treat as professional investors and other Clients, natural and legal persons, if they so request and if they meet the necessary criteria and procedures.
The request of the Client – a small investor to be treated as a professional investor – can be general or in relation to a particular investment service or transaction, or ancillary service or type of transaction or product. Such application must be delivered to the Company in the prescribed form titled Application for a change of categorization of small investors – which, for the purposes of classification of the Client, considered assessment of the Client’s knowledge, experience and expertise – depending on the type of transaction or service and the ability to make their own investment decisions and understanding the risk involved.
As part of the stated requirement the Client must meet with at least two of the three criteria in order to be able to qualify for the treatment of professional investor:
- The Client has on the relevant capital market performed an average of 10 transactions in excess of 25,000.00 EUR per each transaction in each quarter in the last year;
- size of the Client’s financial instrument portfolio exceeds 500.000 EUR and
- The Client works or has worked in the financial sector for at least one year on jobs that require knowledge of the planned transactions or services.
If the small investor is treated as a professional investor, for him it may result with the renunciation of higher levels of protection resulting from the conduct of business rules and the possible loss of the level of protection and the rights of the Client.
3.3 ELIGIBLE COUNTERPARTY
Eligible counterparty is subcategory of professional investors. Eligible counterparty is:
- investment firms,
- credit institutions,
- insurance companies,
- management companies of open-end investment funds with a public offering and open-end investment funds with a public offering,
- companies for the management of pension funds and pension funds,
- other financial institutions which are subject to obtaining work permits
- other financial institutions which are subject to obtaining work permits or whose business is governed by the regulations of the European Union or Member States,
- a person whose regular business includes trading for its own account in commodities and / or commodity derivatives unless they are included in the group whose core activity is the provision of other investment services,
- local associations,
- national governments and public bodies that manage with public debt and central banks and
- supranational organizations.
When providing investment and ancillary services and performing investment activities mentioned in the previous point the Company is not obliged to comply with the obligations relating to:
- reporting to the Client about the services that has been provided for him (including costs associated with the transactions and services carried out on behalf of the Client);
- the maintenance of records that includes documents regulating mutual rights and obligations between the Client and the Company;
- the classification of Clients into small or professional investors;
- the measures and procedures that allow the timely and proper execution of orders on behalf of the Client in relation to the orders of other Clients,
- to accurately and promptly recording data on the execution of orders on behalf of the Client;
- to accurately and promptly allocate orders executed on behalf of the Client;
- for immediate execution of comparable order for the Client’s account according to the time of acceptance of the order from the Company,
- for immediate execution of comparable orders for the Client’s account according to the time of acceptance of the order of the Company, unless it does not prevent the prevailing market conditions or unless the interests of the Client does not require different treatment;
- to promptly notify the Client of any significant problems related to the proper execution of order on behalf of the Client as soon as the Company has learned about them;
- the prohibition of misuse of information related with the still unexecuted Client’s order (on his behalf) and take all reasonable actions to prevent misuse of such information by relevant persons of the Company;
- When the Company is responsible for the supervision and organization of settlement of executed order on behalf of the Client, it shall take all reasonable steps to enable all financial instruments or Client’s funds received in settlement of the said order to be executed timely and properly supplied to the appropriate account of the Client
- to perform the order at the best conditions for the Client,
3.4 CHANGE OF CLIENT CLASSIFICATION
The Company can on its own initiative or at the request of the Client:
- the Client, who is considered as a professional investor, treat as a small investor and
- the Client, who can be classified as a eligible counterparty, the Company may treat as a professional or small investor, at the request of the Client:
- the Client, who is considered as small investors treat as a professional investor, under condition that the Client fulfills the required conditions.
Changing, the transition from professional to a small investor, or from a eligible counterparty to a professional or small investors is regulated by the Request for a change of categorization of the professional investor or eligible counterparty. Relevant change may be related to one or more investment / ancillary services or transactions, or to one or more types of product or transaction.
Changing the categorization of the Client who from small investors becomes professional investor is regulated by the Request for a change of categorization of small investors. Relevant change may be related to all investment / ancillary services or transactions, or to one or more types of product or transaction which the Company provides to the Client.
Changing the Client’s categorization from professional investor to the eligible counterparty is regulated in written form at the initiative of the Client or the Company’s initiative. The above changes may be referred to the services and activities from point 3.3. of relevant document.
A professional investor is obliged to inform the Company of any change that could affect his status. Under the above mentioned notice sent by the Client, or if the Company determines that the Client no longer fulfills the conditions prescribed for professional investors, the Company is obliged to classify him and treat him as a small investor, and inform him of relevant classification.
The Company asserts and warns the Client that classification as a small investor implies a higher level of protection compared to professional investors, which is particularly evident in the following manner:
- The Company is required, before providing a small investor for the first time with the service, form a written contract governing their mutual rights and obligations;
- The Company is obliged, before signing a contract with a small investor,inform small investors on contractual terms and give general information such as a Company name, address and business address of the, as well as information that enables the Clients to successfully communicate with the Company, languages on which the Client can communicate with the Company and receive documents and other information that the Company sends to him, the methods of communication that can be used between the Company and the Client to send and receive order, extent, frequency and time of reporting the Client about the services the Company provided to the Client in accordance with the provisions of the CMA, a description of the policy management of conflicts of interest that may be in the form of a summary and similar forms;
- The Company is required to give, send or distribute to the Clients accurate, clear and understandable information – including advertising communication – in a way that is likely that a small investor will receive them;
- The Company is obliged to inform small investors on financial instruments;
- When the Company is authorized to hold financial instruments or funds of the Client, its obligations – where appropriate – is to provide small investor with information related to the protection of financial instruments and funds of the Client,
- In carrying out the order of the small investor, the Company is required to determine the achievement of the best possible result in relation to the total cost of the transaction, or if a single financial instrument can be realized in several markets, the Company will determine where the market achieves best execution and send in accordance with the Client the order for execution on the same market;
- The Company shall inform the small investor about prices and costs, which specifically includes the total price to be paid by the Client for a financial instrument or investment or ancillary service, including all related fees, commissions, fees and costs, as well as all charges payable by the; in cases where any part of the total price of the preceding paragraph should be paid in foreign currency or the amount is represented in foreign currency,the Client’s attention must be paid to the currency that is included with the current exchange rates and costs; Company is obliged to note that there is a possibility of other costs, such as taxes or other charges related to the transaction in relation to a financial instrument or investment service which may arise for the Client, which cannot be paid to the Company or are not imposed by the Company.
Furthermore, the Company reserves the right to make a decision on accepting the Client´s request to change the categorization from small to professional investors, where the Client wants to give up a higher level of protection resulting from the conduct of business rules and which small investor enjoys in relation to professional investor. The Client may at any time request higher level of protection resulting from the rules of professional conduct.
4 FINANCIAL INSTRUMENTS
The derivatives, which are considered as complex financial instruments include:
- options (options), futures (futures), swaps (swaps), forward rate agreements (forward rate agreements) and any other derivative contracts relating to securities, currencies, interest rates or yields, and other derivative instruments, financial indices or financial measures which may be settled physically or in cash;
- options, futures, swaps, forward rate agreements and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the request of one of the contracting parties (except for the reason of non-payment or other reasons for breach of contract);
- options, futures, swaps and any other derivative contracts relating to commodities that can be physically settled provided that they are traded on a regulated market and / or a multilateral trading facility;
- options, futures, swaps, forwards and any other derivative contracts relating to commodities that may be settled physically, other than those specified in paragraph 3 sub-items d. Relevant point and do not have commercial purposes, which have the characteristics of other derivative financial instruments, among other things, taking into account the fact settled there and settled through recognized clearing houses or are subject to regular margin call;
- derivative instruments for transfer of credit risk;
- Financial contracts for differences (CFD) and
- options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in money at the request of one of the parties (except for the reason of non-payment or other reasons for breach of contract), as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in relevant point, and that have the characteristics of other derivative financial instruments, having, among other things, the fact they are traded on a regulated market and / or a multilateral trading facility and settled there and settled through recognized clearing houses or are subject to regular margin calls.
Risks of investing in derivatives
In addition to the general risks, the most important investment risks are:
- Position risk (type of market risk)– the risk of loss due to price change (increase or decrease) of financial instruments, or in the case of financial instruments derived from underlying variables.
General position risk – the risk of loss on the basis of changes in prices of financial instruments due to changes in the level of interest rates or major changes in the capital market, regardless of any specific characteristic of relevant financial instrument.
Specific position risk – the risk of loss on the basis of changes in prices of financial instruments due to the fact that related to its issuer, or in the case of a derivative financial instrument, due to the facts relating to the issuer of the underlying financial instrument.
- Settlement risk, which includes counterparty risk – the risks of losses on the basis of default of the other party.
- Currency risk– the risk of losses resulting from a change in exchange rates.
- Commodity risk– the risk of loss resulting from changes in commodity prices.
- Credit risk– the risk of loss resulting from failure to meet financial obligations.
- Liquidity risk– the risk of loss resulting from existing or expected inability of the investment firm to meet its financial obligations at maturity day.
4.5. RISKS FOR CLIENTS, INVESTORS IN FINANCIAL INSTRUMENTS
Risks of investing in financial instruments are the most important conditions to which the Client must pay attention to when making decisions about buying or selling financial instruments.
Regarding quantification of uncertainty for investment, risk can be defined as the knowledge of a situation in which, as a result of a decision may appear down the results. The likelihood of achieving any results can be known or may be subject to personal evaluation decision makers, as is often the case (in relevant case the investor and / or the issuer). It cannot be assumed that the small investor as opposed to a professional investor has the knowledge and experience necessary for risk assessment in relation to those investment services or transactions, or type of transaction or product that is classified as a small investor.
Diversification over time proved to be a successful way of balancing risks of investments and realized returns. Diversified investment represents investment in different types of financial products, various phrases and thus different rates of return (interest). Personal assets (investments, savings), which is diversified (scattered, combined) in deposits, building societies, life insurance, investment funds and share units, helps reduce overall investment risk as a kind of investment in a given moment can achieve satisfactory yields, while the other type of investment does not achieve satisfactory yields. Of course, diversification of investment does not guarantee complete security investments. It only reduces overall investment risk.
GENERAL INVESTMENT RISKS IN FINANCIAL INSTRUMENTS:
- Country risk– risk rating determined by the national economy in the global environment, which include:
- sovereignty risk– the risk absence of ability and / or willingness of repayment of maturing debt,
- political risk– the risk of unexpected political changes and / or instability in the country; source of instability may be a change of government, regulatory bodies and / or other political entities,
- economic or cyclical risk– the risk of loss of value of a financial instrument due to recession, the local economy,
- currency risk– the risk that the exchange rate; changes in exchange rates may affect the return (to reduce it or increase) of investments in foreign currency,
- inflation risk– the risk of decline in the value of financial instruments due to the increase in the general price level (inflation)
- the risk that the legal / tax regulations– risk indicative of changes in legal and / or tax regulations and / or the capacity of the company in a manner which adversely affects the profitability of investments in financial instruments and the position of investors and
- risk transfer (transfer) of capital– the risk of occurrence of the prohibition removal of capital across national borders.
- Issuer risk– risk caused by factors directly related to individual companies that issue financial instruments, which includes:
- credit risk– the risk of falling or total loss of value of a financial instrument due to deterioration in creditworthiness, credit rating or bankruptcy proceedings against the issuer,
- industry risk– the risk of significant adverse change in the framework of business enterprises in terms of competition, technology, standards, etc.,
- control risk– the risk of inefficient and destructive of the management structure of companies that have a negative impact on its performance,
- operational risk– the risk of loss resulting from inadequate or erroneous business processes of enterprises, human failures or errors and internal systems in performing business activities and external events; including the risk of failure on IT systems, risk communication breakdown between the service provider, natural disasters, fraud,
- the risk of non-payment of dividends– the risk that a joint stock company will not pay a dividend, which depends on the decision of the general assembly of a joint stock company, as well as on the operations of the same, and
- ecological risk– the risk of adverse environmental impact due to the performance of the business activities of enterprises.
- Financial instrument risk– the risk caused by the characteristics of a particular financial instrument which to includes:
- Liquidity risk– the risk of insufficient promptness able to buy or sell a financial instrument on the secondary market capital, possibly with significant loss of value due to the reduced attractiveness of the same or the inefficiency of the market,
- market risk– the risk that the value (increase or decrease) of financial instruments due to daily changes in their market prices,
- thepsychology of the market risk– the risk that the value of a financial instrument due to speculative activities of major investors, or large corporate actions in the stock market,
- interest rate risk– the risk of lowering the value of a financial instrument due to changes in the level of market interest rates relative to the interest rate / yield to the present instrument,
- counterparty risk– the risk of a contracting party / entity to the other contracting party / entity will not be able to meet its contractual obligations; Sometimes relevant type of risk is called the risk of bankruptcy,
- settlement risk– the risk that the settlement of transactions in financial instruments would be difficult or completely impossible, e.g. That the other party will deliver a financial instrument or will not fulfill its financial obligation arising from the transaction,
- reinvestment risk– the risk that the future cash inflows from individual financial instrument to invest at lower yields or a lower interest rate than the one which wore a financial instrument itself,
- timing risk– the risk of leakage of favourable price movements of financial instruments due to the wrong timing for the purchase or sale of a financial instrument and
- risk of a financial leverage– the risk of financing the purchase of financial instruments through credit; regardless of the type of property in which the source of investments obtained by borrowing, investment contains an increased risk of losses. The profitability of the investment itself does not affect the obligation to return the debt, but it even in certain cases may increase. On the other hand, the cost of such financing directly affects the reduction in yield investments.
The Clients, in addition to the above risks, should pay attention to the risks that are described later in relevant material.
- Risk of third contracting parties
In cases where the Company uses the services of third Contracting Parties in order to meet with the Client’s needs for services where such services are necessary, the Company opened with administrator omnibus accounts in which held assets of clients jointly.
The Company always and unconditionally hold financial instruments of clients, e.g. Assets of clients separately from its own assets.
The Company at its offices and on its website publishes a list of all custodians in which holding the assets of the Clients and such a list is always available to the Clients of the Company
The Company always and necessarily lead analyst of financial instruments of the Clients for each Client separately in a manner that allows at any time, without delay, distinguishing asset rating of the assets of other Clients and assets.
CRITERIA OF THE THIRD PARTY SELECTION
When selecting counterparties the Company is going by royalty of management, analysis expertise and quality of third Contracting Parties of information obtained from a third Contracting Party, publicly available information on a third party to the Agreement and in particular of data on third contracting party publishes its regulator. The Company does relevant analysis at least once a year.
RISK OF LOSS OF CLIENTS PROPERTY
In the case of the blockade, bankruptcy, collapse or bankruptcy of third contracting parties the possibility that the Client in whole or in part loss of property by the Company holder for him at third counterparties.
- Risk of deposit funds of the Clients with authorized banks
The Company holds funds of the Clients in the joint accounts of the Clients opened with authorized banks. The Company maintains analytical card of each Client with the correct balance of its funds that the Company holds for him jointly with authorized banks.
The Company holds funds of the Clients jointly on multiple accounts of authorized banks, without parsing means of the individual Client on the account of individual banks with which the Company holds a deposit of Client’s funds.
The total sum of funds that the Company holds for all Clients is the sum of funds in the accounts of Clients in all banks with which the Company holds Client’s funds.
The Company always and unconditionally holds funds separate from its own assets and its own funds.
The Company always and unconditionally leads analytics of the Client’s property for each Client separately in a manner that allows at any time, without delay, resolution of the Client’s property from the assets of other s and assets of the Company.
THE CRITERIA OF SELECTION OF THE BANK
The Company selects the bank in which it will deposit the funds of Clients with sound business practices, analysis of expertise and quality of the institution from the information obtained from banks, publicly available information about the bank and in particular from the information about the bank publishes its regulator. The Company does relevant analysis at least once a year.
THE RISK OF LOSS OF FUNDS
In the case of the blockade, bankruptcy, collapse or bankruptcy of the bank there is a possibility that the Client in whole or in part lose of funds that the Company held for him at an authorized commercial banks.
In the case of the blockade, bankruptcy, collapse or bankruptcy of the bank there is a possibility that the Client in whole or in part loss of funds that the Company held for him at an authorized commercial bank in the ratio of the amount of its financial resources in relation to the total sum of funds that the Company holds for all Clients and in relation to the percentage of loss of or inability for payment of all or part of the amount of funds that the Company deposited with the Bank for which the circumstance of blockade, bankruptcy, collapse or bankruptcy occurred.
- Risk of holding assets of the Client with the Custodian
The Company holds financial instruments of the Clients with the Custodian.
In cases where the Company uses the services of custody in order to meet with Clients’ needs for services where such services are necessary, or by the will of the Client, the Company opens with custodian accounts where it holds Client’s assets.
The Company always and unconditionally holds Client’s financial instruments, the Client’s assets, separately from its own assets.
The Company always and necessarily keeps track of Client’s financial instruments for each client separately in a manner that allows at any time, without delay, distinguishing asset of the Client from the assets of other clients and assets of the Company.
CRITERIA OF SELECTION OF CUSTODIAN
The Company selects the Custodian with sound business practices, analysis expertise and quality of the Custodian from the information obtained from a third contracting party, publicly available information about the Custodian and in particular from information about the Custodian published by its regulator. The Company does relevant analysis at least once a year.
RISK OF LOSS OF CLIENTS PROPERTY
In the case of the blockade, bankruptcy, collapse or bankruptcy of third contracting parties, there is possibility that the Client losses whole or part of the property which the Company holds for him at third parties.
5 ASSESSMENT OF APPROPRIATENESS
When providing investment services, the Company is obliged, based on the information supplied by the Client, create a profile on the knowledge and the experience of (potential) Client – a small investor in the field of investments (taking into account the nature of the Client, the nature and the scope of services, the type and complexity of the product and / or transactions and risks involved) in order to assess whether is a appropriate product (and / or investment services) offered to him or which he request from the Company.
In the case of the (potential) Client – the professional investor or a eligible counterparty, the Company may reasonably presume it possesses the knowledge and experience of risk assessment in relation to those investment services or transactions, or types of transaction or product for which is classified as a professional investor.
The above profile of the knowledge and experience of the (potential) Client – a small investor shall contain the following information:
- basic information about the (potential) Client,
- the type of services, transactions and financial instruments which are known to the (potential) Client,
- the nature, volume and frequency of transactions of the (potential) Client with financial instruments and the period in which they are made,
- title and the current profession of the (potential) Client and which the (potential) Client itself requires from the Company.
- a specific type of product or investment services which the Company offers to the (potential) Clients, or that the (potential) Client itself requires from the Company.
The profile is made based on the prescribed form of the Company, Questionnaire for assessment the suitability of investment services, which is made available each Client or the potential Client in contracting such services and activities.
If the Company on the basis of the information collected from the (potential) Client determines that a product or service is not appropriate for the (potential) Client, or if the Company due to lack of necessary information is not able to determine whether a product (and / or services suitable for the (potential) Client, it will warn him of this. In the mentioned another case, when the Company is unable to determine whether a product (and / or services) is suitable for the (potential) Client, there is a possibility that the product (and / or services) is not suitable for him and that he may be exposed to risks that exceed the limits of his knowledge and experience and / or possibly not have enough knowledge and experience to properly assess them and / or controlled in order to minimize its consequences for him. If the Client still wants to use the investment service to his own responsibility, he is obliged to sign the declaration of intention to use investment services at his own risk, which is located within the Questionnaire for assessment of the suitability of investment services.
Investment services consisting exclusively of receiving and transmitting and / or execution of orders on behalf of the Client, with or without ancillary services, the Company can provide without collecting the information and / or giving the mentioned assessment if they meet with all of these following conditions:
- The service is provided on the initiative of the (potential) Client.
- The (Potential) Client is clearly informed that when providing relevant services the Company is not obliged to carry out the assessment if the instruments or services are suitable for the Client and the Client therefore does not enjoy protection in accordance with the relevant rules of business conduct.
It is believed that the service is not provided on the initiative of the Client when the Client’s request for the provision of services is result of the personalized communication from or on behalf of the Company to the Client, which contains an invitation or is aimed at influencing the Client in connection with certain financial instrument or a particular transaction.
It is believed that the service is provided at the initiative of the Client, despite the Client requires the provision of services on the basis of all forms of communication which contains promotion or offer of financial instruments, carried out in any way which is general by its nature and addressed to the public, a larger group or the type of (potential) Clients.
6 THE PLACE OF ORDER EXECUTION
The information on the places of the order execution can be found under the Best interest and order execution policy
that, among other things, is also on the Company’s website (www.trades.hr) as well as at the offices of the Company. For additional information about the places of the order execution it is necessary to refer to the Company.
7 COSTS AND EXPENSES
All information on the costs and associated expenses are listed in the List of fees charged each of the financial services and activities that the Company provides and performs, and that is available for every Client or potential Client while contracting such services and activities.
When providing TRADES service to the Clients based in France, Turkey and USA it is not possible to process their transactions with Trust Pay.
DEAR CLIENTS, if the information that the Company has give you in relevant document is not sufficient, or if you did not understand the same, please before concluding cooperation with the investment firm request any additional information or any clarification in order to fully understand the terms of our mutual cooperation and our presentation to you.
WE APPRECIATE IN ADVANCE FOR ANY KIND OF QUERIES AND FOR THE BEGGINING OF THE COOPERATION!