MiIFID II Announcement for Forex Retail Individual Clients

26 gru 2017

Dear Client,

Alfa Capital Holdings (Cyprus) Limited including its London branch (collectively referred as “ACC” or “the Company”), since it operates in the European Union (EU), is currently subject to the terms of the Markets in Financial Instruments Directive (MIFID I), as transposed by the local regulator, the Cyprus Securities and Exchange Commission (CySEC).

As a result of EU financial regulatory reforms, ACC will become subject to the revised Markets in Financial Instruments Directive, the Markets in Financial Instruments Regulation and Cyprus Law 87(I)2007 (collectively, "MiFID II") as from 3rd January 2018.

The purpose of this communication is:

  1. to inform you of your MiFID II category;
  2. to inform you on regulatory and contractual documentation;
  3. to inform you of the summary of changes to the Terms of Business;
  4. to require certain consents from you;
  5. to inform you of the information to be provided to the Regulator(s);
  6. to remind you about your obligation to provide us with your nationality and national identifier;
  7. to remind you of your responsibility to keep your profile updated, including your answers in appropriateness and suitability test.

1. Your MiFID II category 

Your client category under MiFID I remains unchanged for MiFID II purposes.

If you believe that your retail categorization is not appropriate for you, or should your situation change, please contact us at the following email address:  info@alfaforex.com.

Please note that this category is applicable until further notification from us.

If you need any information on MiFID protection associated to your MiFID category, please address your questions to the following email address: info@alfaforex.com.

2. Regulatory and contractual documentation 

You will find the following regulatory and contractual documentation on our website at https://alfaforex.com/en/about/documents:

  • our Terms of Business;
  • our Best Execution Policy;
  • our Complaints Policy;
  • our Margin Trading Agreement
  • our Portfolio Management Agreement.

Please note that all abovementioned documentation will be subject to regular review and updates. In case of material changes, you will be notified accordingly.

3. Summary of changes to the Terms of Business

We have updated our current Terms of Business (the “Terms”) in order to take into account all the applicable MiFID II developments, mainly related to the provision of investment services and the way we use and make available the information to you.

Our Terms allow us to make any changes to the terms of our agreement with you. A summary of these changes is presented below. If you wish, you may refuse to accept these changes and terminate our agreement.

If you have any questions about the changes and how they affect you, or any aspect of the services provided to you, please contact your Alfa Forex representative.

Key changes that reflect the new requirements in relation to investment services

A. Provision of investment services

Our Terms have been amended in order to:

  • reflect the new requirements for providing you, upon request, additional information about the costs and charges in relation to our investment services / products.
  • reflect the new requirements for providing you additional information about the new share trading obligations as well as certain derivative contracts, transaction reporting and transparency requirements.
  • inform you on an annual basis, when we execute transactions on your behalf, about the available information in relation to the top five execution venues/brokers (where we place orders with third parties) used.
  • reflect the insertion of the Organised Trading Facility (“OTF”), being the new type of trading venue introduced by MiFID II.  An OTF is a kind of a trading venue in which multiple third parties buying and selling interests in bonds, structured finance products, derivatives or other instruments are able to interact in the system in a way which results in a contract.
  • As an existing customer, you have already consented to trade outside a Regulated Market or a Multilateral Trading Facility (“MTF”); however, on the basis of our Terms, your consent for trading on OTFs when you instructing us for buying or selling a financial instrument traded on an OTF, is deemed necessary.
  • reflect our obligation to disclose information about transactions entered into with you to the relevant regulatory authorities and you hereby agree to waive any rights to confidentiality.
  • reflect the new requirement on us, in case where your account that includes positions in leveraged financial instruments or contingent liability transactions (e.g. Contracts For Differences “CFDs” and rolling spots) or portfolio management (managers’ investments accounts), for informing you where the initial value of the position/portfolio depreciates by 10% within the applicable reporting period and thereafter at multiples of 10%, no later than the end of the next business day in which the threshold is exceeded.

B. Product governance

Our Terms have been amended in order to:

  • reflect our responsibility to assess and define a target market of all the investment products that are manufactured for, distributed or sold to you.
  • reflect our responsibility for performing a preliminary compatibility assessment on each product offered versus your needs, characteristics and objectives.

C. Provision of portfolio management related services

Our Terms and Portfolio Management Agreement have been amended in order to:

  • reflect the new requirement on us, when providing portfolio management services to you, for letting you know where the overall value of your portfolio depreciates by 10% within the applicable reporting period and thereafter at multiples of 10%, no later than the end of the next business day in which the threshold is exceeded.
  • reflect the new requirement on us for performing a periodic assessment of suitability so as to enable us to update your financial situation and objectives.

D. Provision of custody services / holding your assets/funds

Our Terms have been amended in order to:

  • reflect our responsibility to appoint a single officer of sufficient skill and authority with specific responsibility for the safeguarding of your financial instruments and funds.

E. Communicating with you in the course of the provision of investment services

Our Terms have been amended in order to:

  • identify the circumstances under which the Company may provide you with certain information via specified websites instead of providing such information on paper.
  • inform you about recording of telephone and electronic communications as well as your right for accessing those records. These recordings may be made with or without the use of a spoken warning, tone, or similar notification.

4. Required consents

As a result of the upcoming changes envisaged by MiFID II, we request your consent in relation to specific matters so as to ensure compliance with MiFID II and continue trading with you.

A list with all the matters for which we request your consent can be found at the end of this announcement. If you have any objections please inform us accordingly. Kindly note that if you do not communicate to the Company any objections, and you continue to use our services from 3 January 2018, you will be deemed to have given your consent in relation to all aspects referred to this announcement.

5. Information to Competent Authorities

For natural persons

According to the reporting requirements of MiFID II package with regards to natural persons, Alfa Capital Holdings (Cyprus) Limited must disclose, depending on the natural person’s nationality and the highest priority identifier set by the European Securities and Markets Authority (“ESMA”), the following information to the Cyprus Securities and Exchange Commission (“CySEC”):

  • first name;
  • surname,
  • date of birth;
  • other personal identification data (e.g. national passport number).

The Company is currently assessing whether all required information is available within its systems, otherwise we will contact you to request the appropriate information so as to enable us to ensure compliance with the new regulatory requirements.

Your input is important to allow for the uninterrupted continuation of business between us following the implementation of MiFID II from 3 January 2018.

If you have any questions please do not hesitate to contact your Alfa Forex representative at +357 22 470969.

IMPORTANT INFORMATION - CONSENT REQUIRED

This communication concerns the Markets in Financial Instruments Directive 2014/65/EU and Regulation 2014/600/EU (together “MiFID II”) and how this affects our relationship with you as a client of Alfa Capital Holdings (Cyprus) Limited.

The Cyprus Securities and Exchange Commission has introduced a Law based on the MiFID II requirements which requires us to obtain your consent for certain aspects of our work with you.

In order to meet our obligations under MiFID II and be able to continue our business relationship from 3 January 2018 onwards, we ask your consent for the following:

 ✓ Your consent to your categorization as a Retail Client.

 ✓ Your consent to the Terms of Business of Retail Clients, which is provided on our website (https://alfaforex.com/en/about/documents).

 ✓ Your express consent for us to use our discretion in executing your orders outside a Regulated Market, a Multilateral Trading Facility (MFT) or an Organised Trading Facility (OTF), as defined under MiFID II, and in particular, related national implementing measures.

 ✓ Your consent to the Order Handling and Best Execution Policy and Privacy Policy, which are provided on our website.

 ✓ You confirm that you have regular access to the internet and you consent to the Company providing you with information in a durable medium other than on paper, either by facsimile transmission, or electronic mail (email) to the number and address that were provided to the Company. In addition, you hereby consent to the Company providing information that is not addressed to you personally by means of the Company’s website ( http://www.alfaforex.com).

 ✓ Your express consent to assess the depreciation of 10% of the value of any leveraged financial instruments and contingent liability transactions (e.g. contracts for difference and rolling spots) or/and portfolio management account (managers’ investments accounts) on a trading account basis and not on an instrument by instrument basis, unless instructed otherwise.

Kindly note that if you do not communicate to the Company any objections and you continue to use our services from 3 January 2018 onwards, you will be deemed to have given your consent in relation to all aspects mentioned above.


Ostrzeżenie o ryzyku: Kontrakty na różnicę cen (CFD) są złożonymi produktami finansowymi, które zdecydowanie nie są odpowiednie dla wszystkich inwestorów. CFD – to są produkty z dźwignią, termin płatności wg których następuje, gdy Klient zdecyduje się zamknąć istniejącą otwartą pozycję. Klient nie musi ryzykować kwotą większą, niż tą, którą jest gotów stracić. Zanim zdecydujesz się na handel, zapoznaj się z informacjami na temat ryzyka - weź pod uwagę swoje doświadczenie. Klient, w razie potrzeby może zasięgnąć porady niezależnego doradcy finansowego. Proszę przeczytać Powiadomienie o ryzykach Alfa-Forex.

Ostrzeżenie o ryzyku: Kontrakty na różnicę cen (CFD) są złożonymi produktami finansowymi, które zdecydowanie nie są odpowiednie dla wszystkich inwestorów. CFD – to są produkty z dźwignią, termin płatności wg których następuje, gdy Klient zdecyduje się zamknąć istniejącą otwartą pozycję. Klient nie musi ryzykować kwotą większą, niż tą, którą jest gotów stracić. Proszę przeczytać Powiadomienie o ryzykach Alfa-Forex.

Ostrzeżenie o ryzyku: Kontrakty na różnicę cen (CFD) są złożonymi produktami finansowymi, które zdecydowanie nie są odpowiednie dla wszystkich inwestorów. Proszę przeczytać Powiadomienie o ryzykach Alfa-Forex.