Regulatory framework
Regulatory Framework
MiFID II
MIFID, “The Markets in Financial Instruments Directive” being a key part of a package
of European Union laws aimed at creating a single, more transparent market in financial services across all EU member states, has been applicable across the European Union since November 2007. The revised version of MiFID that is being applied since 3 January
2018,
is commonly referred to as MiFID II.
MiFID II extended the MiFID requirements in a number of areas including:
of European Union laws aimed at creating a single, more transparent market in financial services across all EU member states, has been applicable across the European Union since November 2007. The revised version of MiFID that is being applied since 3 January
2018,
is commonly referred to as MiFID II.
MiFID II extended the MiFID requirements in a number of areas including:
- market structure requirements
- transparency requirements
- investor protection
- research and inducements
- product governance requirements for manufacturers and distributors of MiFID ‘products’
- introduction of a harmonised commodity position limits regime
Key elements of MiFID II are Directive 2014/65/EU of the European Parliament
and of the Council of 15 May 2014 (MIFID II) and Regulation (EU) №600/2014
of the European Parliament and of the Council of 15 May 2014 (MIFIR). MiFIDII has been transposed into Cyprus national law by Law 87(I)/2017 and applies from 3rd of January 2018, while MiFIR is a directly applicable regulation.
and of the Council of 15 May 2014 (MIFID II) and Regulation (EU) №600/2014
of the European Parliament and of the Council of 15 May 2014 (MIFIR). MiFIDII has been transposed into Cyprus national law by Law 87(I)/2017 and applies from 3rd of January 2018, while MiFIR is a directly applicable regulation.
Client Categorisation
In line with MIFID a Professional Client is the one which falls in one of the following categories:
Entities which are authorized or regulated to operate in the financial markets, including those authorized by an EU member state.
Such entities are:
Such entities are:
- Credit institutions
- Investment firms
- Insurance companies
- Collective investment schemes (UCITS) and their management companies
- Pension funds and their management companies
- Commodity and commodity derivatives dealers
Large undertakings meeting two of the following requirements (irrespective of an authorization to operate in the financial markets):
Total balance sheet: EUR 20,000,000
Net turnover: EUR 40,000,000
Own funds: EUR 2,000,000
National and regional governments, including public bodies that manage public debt at national or regional level (e.g. central banks,
international and supranational institutions as the World Bank, the IMF, the ECB and the EIB)
Institutional investors whose main activity is to invest in financial instruments, including entities dedicated to securitisation of assets
or other financing transactions (e.g. certain family offices, corporate finance companies).
MiFID II distinguishes between Per se Professional clients as described above and Elective Professional clients.
Elective Professional clients are in principle retail clients who may be treated
as professional clients on request. Two of requirements have to be satisfied in order
to qualify as Elective Professional client:
as professional clients on request. Two of requirements have to be satisfied in order
to qualify as Elective Professional client:
- The size of the client’s financial instrument portfolio, including cash deposits
and financial instruments exceeds €500 000, - The client has carried out transactions, in significant size, on the relevant market
at an average frequency of 10 per quarter over the previous four quarters, - The client has knowledge and experience of the transactions and/or services envisaged.Where we treat you as a Professional Client, some of the CySEC rules
will cease to apply to us and we will be entitled to take advantage of several lighter provisions. In particular:
- you will be given fewer information disclosures with regard to the firm, its services
and any costs, commissions, fees and charges; - when we assess whether a product or service is appropriate for you, we can
assume that you have the necessary level of knowledge and experience
to understand the risks involved in it; - if we are ever required to assess the appropriateness of a personal recommendation made to you we can assume that you have the necessary experience and knowledge
to understand the risks involved, and can sometimes assume that you are able
financially to bear any investment risks consistent with your investment objectives; - when providing best execution, we are not required to prioritize the overall cost
of the transaction as being the most important factor in achieving best execution
for you; - we do not need to inform you of material difficulties relevant to the proper carrying
out of your Order/s promptly; and - should we provide you with periodic statements we are not required to provide
them as frequently as for retail clients.
Retail Client
In line with MiFID, a Retail Client means every client who is neither a Professional Client nor an Eligible Counterparty.As a matter of policy CT CAPITALLTRADERS LTD does not offer services or carry out any business with Retail Clients.
An Eligible Counterparty
In line with MiFID, an Eligible Counterparty is one which falls in one of the following
categories:
In line with MiFID, an Eligible Counterparty is one which falls in one of the following
categories:
- Investment Firms
- Credit Institutions
- Insurance Companies
- UCITS and their management companies
- Pension funds and their management companies
- Other financial institutions authorized or regulated under the European Union
legislation or the national law of a Member State - Undertakings whose main business consists of dealing for own account in
commodities and or commodity derivatives or undertakings which provide investment
services and or perform activities consisting exclusively in dealing on own account on
markets in financial futures or options or other derivatives markets, or which deal for
the accounts of other member of those markets - National and regional governments and their corresponding offices including public bodies that deal with public debt, central banks, supranational organizations
- Large undertakings meeting predetermined proportionate requirements, including quantitative thresholds
- Third country entities with equivalent status
Where we treat you as an Eligible Counterparty, you will be entitled fewer protections under CySEC rules than you would be entitled to as a professional client. In particular:
- we are not required to provide you with best execution when executing your Orders;
- we are not required to disclose to you information regarding any fees or commissions that we pay or receive;
- we are not required to assess the appropriateness of a product or a service that we provide to you but can sometimes assume that you have the expertise to choose the most
appropriate product or service for yourself; - we are not required to provide you with information about ourselves, our services and the agreements through which we will be remunerated;
- we are not required to provide you with risk disclosures on the products or services
that you select from us.
MiFID Disclosures
Policies and Procedures
CTCAP LTD (ex. CT CAPITALLTRADERS LTD is periodically reviewing its policies.Thus documents may undergo minimal changes.Please always check that you have obtained the latest version.