FAQS: IBLUX Brexit Account Migration

Overview: 

This is an important document regarding the proposed transfer of your account from IBUK and IBLLC to IBLUX that requires your attention. Please read the entirety of this document ahead of taking any action referred to in the Covering Letter sent to you via email.

Background: 

Please take time to read this article, which summarises some of the key changes to the regulatory framework brought about by the Proposed Transfer (as described below) and provides answers to some more general questions you may have. It should be read in conjunction with the Covering Letter sent to you via email and to which it was linked. If you require any further information, please get in touch with us using the contact details provided in that Covering Letter. This article supersedes the one previously made available to you titled “FAQs: Brexit Account Migration” (“Original FAQs”) as it reflects new information and we ask that you read it carefully. To the extent there is any inconsistency between this article and the Original FAQs, please rely on the information contained in this article.

Discussion:

This Information Leaflet is split into three parts.

  • Part A sets outs key information in relation to our proposal to transfer your business.
  • Part B covers key legal and regulatory topics that arise as a result of the arrangements covered in Part A.
  • Part C aims to answer any other questions you may have and provide some further and more practical information in relation to what will and will not be changing following the Proposed Transfer.

 PART A – THE PROPOSED TRANSFER

1. What is the situation currently and why do things have to change?

As you would be aware, at present, your relationship with Interactive Brokers is led by our entity based in the United Kingdom, specifically Interactive Brokers (U.K.) Limited (“IBUK”) and the services provided to you are provided by IBUK and, depending on the products you do business in, our US affiliate Interactive Brokers LLC (“IBLLC”). At present IBUK utilises what is known as a financial services passport to be able to perform its part of the service provision across continental Europe. Our working assumption is that following the end of the Brexit transitional period later this year, IBUK will lose the ability to do so and that from 1 January 2021 Interactive Brokers will need to make some changes in relation to which legal entity does business with you. 

2. What are the “changes” envisaged above?

We have established a new Interactive Brokers legal entity in Luxembourg, specifically, Interactive Brokers Luxembourg SARL (“IBLUX”). The proposal is to transfer the business that you currently conduct with IBUK and IBLLC to IBLUX. In other words, it is our intention that all of your accounts, investments and services currently provided by IBUK and IBLLC will instead be singularly provided by IBLUX (for convenience we will refer to this as the “Proposed Transfer”). 

3. When will the Proposed Transfer occur?

At present, the Proposed Transfer will likely occur after October 30 th 2020 depending on the readiness of your account (i.e. the completion of all required actions detailed in the Covering Letter). 

4. Who is IBLUX? What sort of a firm is it?

IBLUX was granted authorisation by the Luxembourg Financial Sector Supervisory Commission (Commission de Surveillance du Secteur Financier, CSSF) to operate as an investment firm in November 2019. IBLUX’s regulatory status and profile is very similar to IBUK’s. This is because both IBLUX and IBUK are authorised pursuant to the second Markets in Financial Instruments Directive. This is an EU-wide piece of legislation whose purpose is to, as much as possible, harmonise how investment firms are regulated. 

This does not mean there are not some differences between the regulations that apply to your relationship at present and those that will apply once your account is transferred. We explain these in more detail in Part B of this article. 

5. What are IBLUX’s legal details?

Interactive Brokers Luxembourg SARL is registered as a private company limited by shares (société à responsabilité limitée)  (registration number B229091) in the register of companies for Luxembourg. Its registered address is 4, rue Robert Stümper, L - 2557 Luxembourg. We are still finalising IBLUX’s day-to-day contact details and will be in touch with these in due course.   

6. Who will regulate IBLUX and what are their contact details?

The Luxembourg Financial Sector Supervisory Commission (CSSF) is the competent regulator for IBLUX (in the same way that the Financial Conduct Authority is the competent regulator for IBUK). The Luxembourg Financial Sector Supervisory Commission’s (CSSF) contact details are set out below:

Location

Commission de Surveillance du Secteur Financier

283, route d’ArlonL-1150

Luxembourg 

Postal Address and Contact Numbers

Commission de Surveillance du Secteur Financier

L-2991 Luxembourg

Phone: (+352) 26 25 11 Fax: (+352) 26 25 12601 

Public Helpline

E-mail: direction@cssf.lu

Phone: (+352) 26 25 12 28 0 

 

7. Where does IBLUX fit with respect to the broader Interactive Brokers group?

IBLUX is a wholly-owned subsidiary that sits within the broader Interactive Brokers Group.

8. What does the Proposed Transfer mean for me? Will there be any material impacts?

We do not anticipate any material impacts. Nonetheless, it is very important you read this article and make sure you understand what the changes are.

9. What do I have to do if I want to continue doing business with Interactive Brokers?

If you would like to continue to do business with Interactive Brokers we require your cooperation and action.

Specifically, we need you to consent and agree to the Customer Agreement and other Documents attached to the Covering Letter and to the regulatory matters outlined in the Covering Letter. You can do this by following the instructions in the Covering Letter.

To be clear, you do not have to consent to the Proposed Transfer if you feel you may be adversely affected by it. However, you should be aware that if you decide to decline, IBUK will likely not be able to keep servicing your account at the end of the Brexit transition period. If that happens, your account will be put in liquidation and we will ask you to transfer your assets to another broker. If you wish to decline, please follow the instructions in the Covering Letter.

In either case, we ask that you read the entirety of this Information Leaflet and the Covering Letter before deciding to consent to or decline to the Proposed Transfer.

10. What happens next?

If you consent to the transfer, please complete all actions detailed in the Covering Letter and we will prepare your account for the Proposed Transfer. Following the Proposed Transfer, IBLUX will write to you with further information about your new relationship with them.

 

PART B – LEGAL AND REGULATORY CHANGES THAT YOU SHOULD BE AWARE OF

1. What terms and conditions will govern your relationship following the Proposed Transfer? Are these different to the ones that currently apply?

Trades that you conduct after the Proposed Transfer will be governed by the new Customer Agreement between you and IBLUX. A copy of the new Customer Agreement will be presented to you online when you are provided with an opportunity to consent. Please see question A3 above in relation to the timing for the Proposed Transfer.

2. What conduct of business rules (including best execution) will apply to my relationship with IBLUX? Are there any material differences that apply to my relationship with IBLUX when compared to my existing relationship led by IBUK in this context?

There are some changes to be aware of, which we explain below.

If you do business with IBUK on a “carried” basis (in other words, you trade index options, futures and futures options and IBUK carries your account and custodies your assets) then the Financial Conduct Authority’s conduct of business rules currently apply to you. These rules are based heavily on the recast Markets in Financial Instruments Directive, the Markets in Financial Regulation and various delegated directives and regulation (collectively “MiFID”). In relation to best execution, where it applies, IBUK must take all sufficient steps to achieve the best possible result for you when we execute your order.

If you currently do business with IBUK on an “introduced” basis (in other words, you trade products outside of those mentioned in the previous paragraph and you have a relationship with both IBUK and its US affiliate, IBLLC) a mix of conduct of business rules currently apply to you. For instance, with respect to the introduction of your business to IBLLC, the Financial Conduct Authority’s conduct of business rules apply (see above in relation to these). Once introduced to IBLLC, the relevant U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission rules and regulations (among others) apply to IBLLC’s role (including its obligations in relation to best execution and custody).

Note more generally that it is of course possible that your business is split across these two scenarios (in other words, some of your business is conducted on a “carried” basis while some of it is conducted on an “introduced” basis).

Going forward, the distinction between “carried” and “introduced” business will no longer apply and in each case set out above, Luxembourg conduct of business rules will exclusively apply to your relationship with IBLUX. Like the UK Financial Conduct Authority’s rules, these are based heavily on MiFID and IBLUX’s obligations in relation to best execution mirror those that currently apply to IBUK.

In our view, while the rules that apply to our relationship will change, we do not consider such changes to be material or to result in a lesser degree of protection being afforded to you.

3. How will my investments that I custody with IBLUX be held from a legal/regulatory perspective? Are there any material differences that apply to my relationship with IBLUX when compared to my existing relationship led by IBUK in this context?

The rules that currently apply depends on the sort of business you presently have with IBUK (see B2 above). Where you conduct “carried” business with IBUK the, Financial Conduct Authority’s client asset (or “CASS”) rules will apply. These are based heavily on MiFID. Where you conduct “introduced” business with IBUK and IBLLC, the US custody rules will apply to your custody assets.

Going forward, as set out above, the distinction between “carried” and “introduced” business will no longer apply and in each case set out above, Luxembourg custody rules will exclusively apply to your relationship with IBLUX. Like the UK Financial Conduct Authority’s rules, these are based heavily on MiFID.

4. How am I protected against loss? Are there any material differences that apply to my relationship with IBLUX when compared to my existing relationship led by IBUK in this context?

Currently your eligible assets are protected from loss either under the US Securities Investor Protection Corporation or the UK Financial Services Compensation Scheme (which regime applies depends on the relevant segment of your IBUK account, as explained above in B2). After the Proposed Transfer, the Luxembourg Investor Compensation Scheme (Système d’indemnisation des investisseurs, SIIL) will protect your assets from loss should IBLUX default and be unable to meet its obligations to you.

Luxembourg’s compensation scheme is similar to the compensation scheme you have access to in the UK, albeit with a lower limit. The purpose of the Luxembourg Investor Compensation Scheme (Système d’indemnisation des investisseurs, SIIL) is to pay compensation to you (subject to certain limits) if you have invested money or investment instruments in either of the following cases:

  • An authorised firm that the CSSF has decided is not in a position to repay investors/meet its obligations, or
  • A court ruling prevents the firm from returning your investment.

The scheme is operated by the Luxembourg financial markets authority (Commission de Surveillance du Secteur Financier, CSSF) and managed by the Council of protection of depositors and investors (Conseil de protection des déposants et des investisseurs, CPDI). If a member firm of the scheme goes out of business and cannot return your money or investment instruments, you may be able to claim compensation from the scheme.

IBLUX is a member of the scheme.

The scheme covers investment products including:

  • Public and private company shares
  • Units in collective investment schemes
  • Tracker bonds
  • Futures and options

Usually you can only make a claim after a firm goes out of business and its assets have been liquidated and distributed to those who are owed money. Check the details of the schemes for any limits that apply – not all losses will be covered as there are maximum levels of compensation. The Luxembourg Investor Compensation Scheme (Système d’indemnisation des investisseurs, SIIL) will pay you compensation for the amount you have lost, up to a maximum of €20,000.

5. How do I make a complaint to IBLUX? Are there any material differences that apply to my relationship with IBLUX when compared to my existing relationship led by IBUK in this context? What if my complaint relates to something that happened while I was a customer of IBUK?

The new Customer Agreement sets out how to lodge a complaint with IBLUX. The procedures are materially similar to those that apply to your existing relationship with IBUK. If the substance of your complaint relates to something that happened prior to the Proposed Transfer, then you should address your complain to IBUK. IBUK will remain authorised as an investment firm post-Brexit. Its current contact information will stay the same should you need to contact IBUK.

6. Will I still have access to the Financial Ombudsman?

In case of a complaint, investors should follow the complaints procedure as referred to in the Customer Agreement. Once the Proposed Transfer has taken place, the UK Financial Ombudsman Service will cease to have jurisdiction over any complaints.

7. How will my personal data be processed and protected? Are there any material differences that apply to my relationship with IBLUX when compared to my existing relationship led by IBUK in this context?

There will be no material change.

 

PART C – OTHER PRACTICAL QUESTIONS AND NEXT STEPS

 

1. Who should I contact before the Proposed Transfer takes place and after the Proposed Transfer if I have any questions in the ordinary course?

Generally speaking, you should contact IBUK with any questions prior to the Proposed Transfer and you should contact IBLUX with any questions following the Proposed Transfer. Regardless of who you contact at Interactive Brokers, we will ensure your query is promptly dealt with and will help you to connect to the right person or department.

2. Will the range of products offered be the same?

Our current expectation is that the majority of products that can be traded in the IBUK account will be offered by IBLUX. However, there are some limitations. If you agree to the Proposed Transfer, your IBLUX account will not support transactions in the following products: (i) OTC Precious Metals, and (ii) OTC Metal Futures. In addition, IBLUX will not offer the ability to transact leveraged foreign exchange or to adhere to the Stock Yield Enhancement Programme that is currently available to you. Clients that are residents of Luxembourg will also be restricted from trading Bonds.

To the extent you are impacted by this, we will separately get in touch with you.

3. I currently trade OTC derivatives with IBUK – what will happen to my open positions?

Your open positions will be transferred to IBLUX and your position will face IBLUX rather than IBUK. You will no longer have any legal relationship with IBUK in relation to those positions.

We will separately provide to you an updated  Key Information Document (please follow the link to the PRIIPs KID landing page in the Covering Letter).

4. What happens to any security I have granted IBUK as part of a margin loan?

If you have granted security or collateral to IBUK/IBLLC, it will transfer to IBLUX upon the Proposed Transfer. We do not anticipate you needing to take any steps to reflect the change in beneficiary, although we may need to take some administrative steps of our own to update security registers with the change in details. This should, however, not affect our priority or otherwise affect the date from which the security is valid.

5. Will I have access to the same trading platform or be subject to any software changes following migration?

The migration will have no impact upon the software you use to trade or administer your account. The technology will remain the same as it is today.

6. Will all account balances be transferred at the same time? What will happen to my current account following migration?

All balances, with the exception of accruals (e.g., interest, dividends) will be transferred at the same time. Once accruals have been posted to cash, they will automatically be swept to the migrated account

7. What will happen to my current account following migration?

Once all accruals have been  swept, your current account will be closed and inaccessible for trading purposes. You will still be able to access this closed account via the Client Portal for purposes of viewing and printing archived activity and tax statements.

8. Will IBKR’s commissions and fees change when my account is migrated?

No. IBKR commissions and fees do not vary by the broker your account is maintained with.

9. Will my trading permissions change when my account is migrated?

Following migration, you will be restricted from engaging in leveraged forex transactions.

10. Will open orders (e.g., Good-til-Canceled) be carried over when my account is migrated?

Open orders will not be carried over to the new account, and we recommend that clients review their orders immediately following the migration to ensure that the open orders are consistent with their trading intentions.

11. Will I be subject to the U.S. Pattern Day Trading Rule once my account is migrated?

Accounts maintained with IBUK are subject to the U.S. Pattern Day Trading (PDT) rule as the accounts are introduced to and carried by IBLLC, a U.S. broker. The PDT rule restricts accounts with equity below USD 25,000 to no more than 3 Day Trades within any 5-business day period.
 
As accounts migrated to IBLUX will not be introduced to IBLLC, they will not be subject to the PDT rule.

12. Will I receive a single, combined annual activity statement at year end?

No. You will receive an annual statement for your existing account which will cover the period starting January 1, 2020 through the date of migration and a second annual statement for your new account which will cover the period starting from the migration date through December 31, 2020.

13. Will the current cost basis of positions be carried over when my account is migrated?

Yes, this migration will have no impact upon the cost basis of your positions.

14. Will the migrated account retain the same configuration as the current account?

The configuration of the account following migration will match that of the current account to the extent permissible by regulation. This includes attributes such as margin capability, market data, additional users and alerts.  In limited instances, an account will be migrated to a jurisdiction where the full scope of product eligibility cannot be offered. Client’s holding restricted products may migrate and maintain or close such positions but won’t be allowed to increase the position. 

15. Will my login credentials change? 
A: No. Your user name, password and any 2-factor authentication process in place for your existing account will remain active following migration. You will, however, be assigned a new account ID for your migrated account.

 

Preguntas frecuentes: el Brexit y la migración de cuentas

INTRODUCCIÓN

Interactive Brokers Group ('IB') y su filial en el Reino Unido, Interactive Brokers (U.K.) Limited ('IBUK'), han estado realizando planes para el fin del período de transición del Brexit, actualmente programado para el 31 de diciembre de 2020, y hemos estado preparando acuerdos alternativos para nuestros clientes europeos. Nuestra prioridad es asegurar una transición sin problemas, y la continuación de la prestación de servicios de corretaje a nuestros clientes con mínimas interrupciones y mínimos cambios. Los clientes que se vean afectados por este evento recibirán notificaciones en donde se detallen los cambios y los cronogramas. A continuación se incluye una lista con preguntas frecuentes respecto de la migración de cuentas propuesta de IBUK a uno de nuestros otros brókeres europeos.

Preguntas frecuentes 

P: ¿Qué acciones está tomando IBKR para asegurar la continuidad de los servicios de corretaje cuando comience la transición hacia el Brexit el 1 de enero de 2021?

R: En 2018 IBKR constituyó Interactive Brokers Luxembourg SARL ('IBLUX'), la cual recibió autorización normativa en noviembre de 2019. Además, nos encontramos en el proceso de la creación de dos brókeres adicionales con base en la Unión Europea: Interactive Brokers Ireland Limited ('IBIE') e Interactive Brokers Central Europe Befektetési ZRt ('IBCE').

Nuestra intención es migrar a todos los clientes afectados por el Brexit a uno de estos tres brókeres con base en la Unión Europea (los 'brókeres de la UE') antes del 31 de diciembre de 2020.  La migración a IBIE e IBCE está condicionada a la obtención de la autorización regulatoria de la autoridad nacional competente correspondiente.

 

P: ¿A cuál de las cuentas de bróker de IBKR se migrará mi cuenta?

R: La decisión final respecto de cuáles serán las cuentas que se migrarán a IBLUX, IBIE o IBCE no se ha tomado aún.  Estimamos que la mayoría de nuestros clientes con base en Europa Occidental se migrarán a IBIE, los clientes con base en Europa Central y del Este a IBCE, y un grupo selecto de clientes a IBLUX. Otros de los factores que se tendrán en cuenta son el tipo de cuenta y las posiciones de los clientes.

Todos los clientes recibirán una comunicación en donde se especificará el bróker que se ha programado para su migración antes del envío de la solicitud de migración.

 

P: ¿Cuáles son los clientes que se ven afectados por este plan de migración?

R: Los clientes afectados incluyen las personas residentes en la Unión Europea o cuentas de entidades constituidas dentro de un país de la Unión Europea. La mayoría de estas cuentas reciben actualmente servicios de Interactive Brokers (U.K.) Limited ('IBUK').

 

P: ¿Cómo se presta el consentimiento?

R: Recibirá un correo electrónico en donde se le solicitará que inicie sesión en Client Portal una vez que estemos listos para migrar su cuenta. Una vez que inicie sesión, se le proporcionarán las declaraciones y los acuerdos de cliente necesarios respecto de los cuales puede prestar su consentimiento de forma electrónica. Los clientes que no respondan al correo electrónico inicial recibirán una serie de correos electrónicos recordatorios.

 

P: ¿Qué sucede si no hago nada?

R: En caso de no responder a nuestra solicitud de proporcionar su consentimiento, su cuenta se verá condicionada a las mismas restricciones de negociación y transferencia que se aplicarían si no hubiera autorizado la transferencia. Su cuenta permanecerá condicionada a los términos y condiciones de su acuerdo actual (lo que incluye las comisiones y las políticas de margen) hasta que se haya migrado al bróker europeo designado, se haya transferido a un bróker fuera de IBKR, o se haya cerrado.

 

P: ¿Qué sucede si no presto mi consentimiento para la transferencia?

R: En caso de no prestar consentimiento para la transferencia de su cuenta al bróker de la UE designado, su cuenta podrá quedar restringida para la apertura de nuevas transacciones o para la transferencia de fondos y/o posiciones adicionales. Estas restricciones no le permitirán transferir su cuenta fuera de IBKR.

 

P: ¿Cambiarán mis credenciales para el inicio de sesión?

R: No. Su nombre de usuario, contraseña y proceso de autenticación en dos factores existentes para su cuenta seguirán activos luego de la migración. Sin embargo, se le asignará un nuevo id. de cuenta para su cuenta migrada.

 

P: ¿Tendré acceso a la misma plataforma de negociación o quedaré condicionado a cambios en el software luego de la migración?

R: La migración no tendrá un impacto sobre el software que utiliza para negociar o administrar su cuenta. La tecnología seguirá siendo la que usa hoy en día.

 

P: ¿Se transferirán todos los saldos en las cuentas al mismo tiempo?

R: Todos los saldos, con la excepción de los devengados (p. ej., intereses y dividendos) se transferirán al mismo tiempo. Los devengados se transferirán una vez realizado el efectivo. En el caso de los intereses, los devengados normalmente se revierten y el efectivo puede registrarse dentro de la primera semana del mes luego del devengo. En el caso de los dividendos, el devengo se revierte y el efectivo de compensación se registra en la fecha en la que el emisor paga el dividendo.

 

P: ¿Qué sucederá en mi cuenta corriente luego de la migración?

R: Su cuenta corriente se cerrará una vez que todos los devengos se hayan registrado en efectivo y transferido a la cuenta migrada. Una vez cerrada, no se podrá acceder para fines de negociación. Sin embargo, quedará accesible mediante un selector de cuenta de Client Portal a los fines de visualizar e imprimir extractos históricos.

 

P: ¿Cambiarán las comisiones y tarifas de IBKR cuando se migre mi cuenta?

R: No. Las comisiones y tarifas de IBKR no varían de acuerdo al bróker con el cual se mantiene su cuenta.

 

P: ¿Cambiarán mis permisos de negociación cuando se migre mi cuenta?

R: Sus permisos de negociación permanecerán inalterados, excepto por las cuentas migradas a las cuentas de IBLUX, las cuales quedarán restringidas para la negociación de fórex apalancados debido a restricciones regulatorias. Si bien no anticipamos restricciones similares aplicables a las cuentas de IBIE e IBCE, le notificaremos en caso de que surjan cambios antes de que le solicitemos su consentimiento para migrar las cuentas.

 

P: ¿Se transferirán las órdenes abiertas (p. ej., Good-til-Canceled) cuando se migre mi cuenta?

R: Las órdenes abiertas se transferirán a la nueva cuenta; sin embargo, le recomendamos a nuestros clientes que revisen sus órdenes inmediatamente luego de la migración para asegurarse de que las órdenes abiertas coincidan con sus intenciones de negociación.

 

P: ¿Estaré condicionado por la regla de negociación de patrón diario de EE. UU. una vez que se migre mi cuenta?

R: Las cuentas que se mantengan con IBUK están condicionadas a la regla de negociación de patrón diario de EE. UU. (PDT) debido a que IBL, un bróker estadounidense, es el que introduce y transfiere las cuentas. La regla PDT restringe las cuentas con patrimonios inferiores a 25,000 USD a no más de 3 negociaciones por día dentro de cualquier periodo de 5 días hábiles.

Debido a que IBL no introducirá las cuentas migradas a IBLUX, IBIE o IBCE, no quedarán condicionadas a la regla PDT.

 

P: ¿Recibiré un único extracto de actividad anual combinado al finalizar el año?

R: No.  Recibirá un extracto anual para su cuenta existente que cubrirá el periodo comprendido entre el 1 de enero de 2020 hasta la fecha de migración, y un segundo extracto anual para su nueva cuenta, el cual cubrirá el periodo comprendido entre la fecha de migración hasta el 31 de diciembre de 2020.

 

P: ¿Se transferirá la base de coste actual de las posiciones cuando se migre mi cuenta?

R: Sí, esta migración no tendrá un impacto sobre la base del coste de sus posiciones.

 

P: ¿Retendrá la cuenta migrada la misma configuración que la cuenta actual?

R: La configuración de la cuenta luego de la migración coincidirá con la cuenta actual, dentro del alcance permitido por las leyes. Esto incluye atributos como la capacidad de margen, datos de mercado, usuarios adicionales y alertas.  En ciertas instancias, una cuenta podrá migrarse a una jurisdicción en donde no pueda ofrecerse el alcance completo de la elegibilidad del producto. Los clientes que mantengan productos restringidos pueden migrarse y mantenerse, o pueden cerrar estas posiciones, pero no se les permitirá aumentar la posición.

 

P: ¿Qué sucede si IBKR no recibe las aprobaciones normativas necesarias para migrar las cuentas al 31 de diciembre de 2020?

R: Mientras esté aprobado, IBLUX se encuentra condicionado a las limitaciones del tamaño permitido de sus negocios, y las licencias para IBIE o IBCE son necesarias para completar la migración antes del 31 de diciembre de 2020. En caso de que la decisión sea que ninguna de las dos reciba la licencia a tiempo, se contactará a los clientes para explicarles cómo se manejará su cuenta al finalizar el período de transición del Brexit.

 

P: ¿Puedo continuar tratando las reclamaciones con el servicio del ombudsman financiero del Reino Unido luego de la migración?

R: Los clientes de IBUK son elegibles para presentar reclamaciones no resultas por IBUK para su satisfacción, tratadas por el servicio del ombudsman financiero del Reino Unido. Una vez que su cuenta se haya migrado a IBLUX, IBIE o IBCE, el servicio del ombudsman financiero del Reino Unido ya no se aplicará, y le proporcionaremos la información respecto de todo servicio que lo reemplace. Deberá tener en cuenta que la migración no afectará nuestro procesamiento interno de reclamaciones.

 

P: ¿Cómo afectará la migración a la protección de datos?

R: La migración de su cuenta de IBUK  a IBLUX, IBIE o IBCE no afectará el modo en el que protegemos sus datos personales, de conformidad con las leyes de protección de datos. IBLUX, IBIE e IBCE asumirán, cada uno, la responsabilidad de la protección de datos, y continuarán cumpliendo nuestros altos estándares existentes para la protección de sus datos personales.

 

P: ¿Cómo se verá afectada la protección de mi cuenta?

R: La protección de los seguros disponibles para nuestros clientes en el caso de incumplimiento por parte del bróker es normalmente menos favorable en la UE en comparación con el Reino Unido o EE. UU..

Actualmente, siempre que se cumplan los requisitos de elegibilidad, los clientes de IBUK pueden obtener protección con relación a los servicios de inversiones de conformidad con el esquema de compensación de servicios financieros del Reino Unido (UK Financial Services Compensation Scheme, UK FSCS) por un monto de hasta £50,000. Debido a que los clientes de IBUK son transferidos por nuestro bróker estadounidense, IBL, el segmento de valores de su cuenta podrá ser elegible para el seguro que proporciona la Securities Investor Protection Corporation (SIPC) por un monto de hasta 500,000 USD (condicionado a un sublímite de efectivo de 250,000 USD).

Bajo los brókeres en la UE, IBLUX, IBIE e IBCE, los reclamantes elegibles pueden tener derecho a reclamar una compensación por hasta un máximo de 20,000 EUR. Se proporcionará más información sobre el esquema aplicable, la cobertura y la elegibilidad de las reclamaciones junto con nuestra solicitud de transferencia.  

De acuerdo con la capitalización general de Interactive Brokers Group de 8.25 mil millones USD, junto con las políticas de margen prudentes, implementadas en todos nuestros brókeres, las cuales incluyen verificaciones de crédito previas a la aceptación de órdenes y la liquidación automática de cuentas que no cumplen con los requisitos de margen, creemos que esta migración no tendrá un impacto sobre la seguridad y solidez en general de los activos de nuestros clientes.

Normal 0 false false false EN-US X-NONE X-NONE -->

EDD Requests for Information (RFI)

Overview: 

These FAQs are meant to serve as guidelines for answering customer questions with regard to recent communications that have been sent to a large number of IBKR account holders, requesting specific information. If there are further questions not addressed in this guide, please contact the EDD department.

FOR ALL ACCOUNTS:
 
Is this a legitimate email?
Yes; IBKR recently sent out communications to customers requesting that customers update specific data and documentation.
 
Why has the customer received this notification?
IBRK is conducting a routine review of our clients for the purpose of ensuring that we maintain accurate and up to date information and conduct due diligence on clients from places or of type that present heightened AML risk. As a regulated financial institution, we are required to “know our customers”, and this is part of that effort.
 
Is updating this information required?
Yes; all customers who have received a notification are required to provide the requested information.
 
What is Source of Wealth?
Source of Wealth means any way in which the customer has derived their wealth. Examples include employment income, business income, property sale, inheritance, etc. A client’s sources of wealth should add up to 100%.
 
What documents are acceptable to prove Source of Wealth?
The documents we provided include a list of what you can submit to confirm your source of wealth. Each source of wealth must be accompanied by supporting documentation (e.g., a bank statement for employment income, a bill of sale for property sale, etc.).
 
FOR ORG ACCOUNTS:
 
Why is beneficial ownership information required?
Under US regulations, we are required to collect information about an organization’s beneficial ownership. It is also part of our obligation to “know our customers.”
 
What is a beneficial owner? How is that different from a regular owner?
A beneficial owner refers to the actual people who ultimately own the entity. This differs from regular owners, who could be a combination of other businesses, trusts, custodians, etc. Under relevant regulations, we require any entity that is an account holder to identify any natural person who owns 10% or more of the entity. We then need to verify those peoples’ identities through identification verification documents and confirm their sources of wealth (see number 4).
 
Do I need to complete the Ultimate Beneficial Owner form if I indicated on the Certification of Beneficial Owners form that there are no 10%+ owners ?
No – you do not have to complete the Ultimate Beneficial Owner form if you have certified there are no 10%+ owners. 
 
FOR CAFFIS, IBROKERS, COLLECTIVE INVESTMENT VEHICLES, AND HEDGE FUNDS:
 
What is a Wolfsberg Questionnaire?
The Wolfsberg Questionnaire is an Anti-Money Laundering (AML) Questionnaire designed by the Wolfsberg Group, which aims to provide a standardized overview of a financial institution's AML policies and practices.
 
*The form must be completed in its entirety and dated within the last 12 months.*
 
Why do I need to provide one?
The questionnaire is to help ensure that we know the organization implemented certain standards and practices associated with preventing money laundering, terrorist financing, and other financial crimes.
 
Note: If the business is a hedge fund, we are seeking a completed Wolfsberg Q from their fund manager/investment advisor.
 
Is there a link to the Wolfsberg Questionnaire form?
Yes, the blank form is available to download in Account Management – please review the document task. 
 
You can also download the form here: 
 
I am being asked to submit documentation regarding Fund Status. What documentation do I need to submit?
Please provide a proof of existence document for the fund, and proof of regulatory status for the fund manager and the fund administrator.
 
FOR FOREIGN BANKS:
 
Why do I need to provide a Foreign Bank Certification?
Under the USA Patriot Act, any foreign bank that maintains a correspondent relationship with any US-based bank or broker/dealer must provide a foreign bank certification. 
 
*The form must be completed in its entirety and dated within the last 36 months.*
 
What is the purpose of a Foreign Bank Certification?
The purpose of the foreign bank certification is to help ensure that the bank is complying with all required US regulations with regards to money laundering, terrorist financing, and other financial crimes.

 

Shareholders Rights Directive II

On 3 September 2020, a new European Directive, the Shareholders Rights Directive II ("SRD II"), will enter into force introducing important regulatory changes for intermediaries. SRD II aims to encourage long-term shareholder engagement in European shares by introducing new requirements, including:

  • Obligations for all intermediaries in the chain of custody to provide shareholders information to issuers on demand and no later than the business day immediately following the date of receipt of the request;
  • Requirements for intermediaries to make available meeting announcements or any other information which an issuer is required to provide to shareholders to enable a shareholder to exercise its rights
  • Requirements for intermediaries to facilitate the ability of shareholders to participate in meetings by passing on a shareholder's participation instructions (for example a vote or request to attend the meeting), without delay.

Note that the Directive applies to any intermediary, whether based in the EEA or not. Accordingly, IBKR may in the future forward any request to provide shareholders information that IBKR may receive from issuers (or other appointed entities) whose share is owned through the IBKR accounts of an intermediary or their clients.

Upon receipt of these requests, intermediaries will be required to provide shareholders information directly to the issuers no later than the business day immediately following the date of receipt of the request.

Information to Disclose

  • Full name;
  • Contact details (address, email address);
  • Unique identifiers;
  • Number of shares held;
  • Category/classes of shares held (Only if explicitly requested);
  • Dates from which the shares are held (Only if explicitly requested);
  • Depository location;
  • Vote-eligible shares.

Requests Thresholds

Member states can establish that the right of the issuer to obtain the shareholders information is only effective with regard to holding of a minimum percentage of voting rights, which where set cannot exceed 0.5%.

Requests Handling

IBKR will send these requests in a standardised electronic format. Shareholders information shall be provided directly to the issuer (or other third party entity appointed) in the format prescribed by SRD II. We recommend that intermediaries review the Commission Implementing Regulation (EU) 2018 1212, which details the regulatory formats.

IBKR has appointed a third party provider, Mediant, to facilitate the requests handling. To use their services, they can be contacted directly at SRDTabulations@mediantonline.com.

Alternatively, intermediaries should ensure that they have alternative ways to reply to these requests for information after 3 September 2020.

SFTR: Reporting to Trade Repository Obligations and Interactive Brokers Delegated Service to help meet your obligations

Background: Securities Financing Transactions Regulation (“SFTR”) is a European regulation aimed at mitigating the risk of shadow banking. SFT's have been identified as being one of the central causes of the financial crisis and during and post crisis, regulators have struggled with anticipating the risks associated with securities financing. This led to the introduction of a reporting requirement for these SFTs.

Transactions that are reportable under SFTR: Repurchase agreements (repos), stock loans, margin loans, sell/buy-back transactions and collateral management transactions.

Whom do SFTR reporting obligations apply to: Reporting obligations normally apply to all clients established in the EU with the exception of natural persons. They apply to:

  • Financial counterparties ("FC"): include investment firms, credit institutions, insurance and reinsurance undertakings, UCITS and UCITS management companies, Alternative Investment Fund managed by an AIFM authorised under the Alternative Investment Fund Managers Directive ("AIFMD"), institutions for occupational retirement provision, central counterparties and central securities depositories.
  • Non-Financial Counterparty ("NFC"): Undertakings established in the Union or in a third country that do not fall under the definition of financial counterparty.
  • Small Non- Financial Counterparty ("NFC-"): A small non-financial counterparty is one which does not exceed the limits of at least two of three criteria: a balance sheet total of EUR 20m, net turnover of EUR 40m, and average number of 250 employees during the financial year. Under SFTR, small NFC's reporting obligations are automatically delegated to the financial counterparty with which they execute an SFT.

What must be reported?
The types of SFTs in scope of the requirements include:

Transaction level reporting:

  • Securities and commodities lending / borrowing transactions
  • Buy-sell backs / sell-buy backs
  • Repo transactions

Position Level reporting:

  • Margin lending

In-scope entities will be required to report details of an SFT which is in scope if that SFT:

  • is concluded after the date on which the Regulatory Technical Standards apply to the entity
  • has a remaining maturity of over 180 days on the date on which the RTS apply to the entity
  • is an open / rolling transaction that has been outstanding for more than 180 days on the date on which the RTS apply to the entity

When must it be reported?
SFTR is a two-sided reporting requirement, with both collateral provider (borrower) and collateral receiver (lender) required to report their side of the SFT to an approved Trade Repository on trade date +1 (T+1).

All new SFTs, modifications of open SFT’s and terminations of existing SFTs must be reported daily. Collateral is reported on T+1 or value date +1 (S+1) dependent on the method of collateralisation used.

What do reports include?
Reporting will be done using a combination of 153 fields, depending on product and report type.

  • 18 counterparty data fields - which includes information about the counterparty such as LEI and country of legal residence.
  • 99 Transaction fields – which includes the loan and collateral data information on the type of SFT which has been involved in the transaction
  • 20 Margin fields – which includes information on margin such as the portfolio code and currency.
  • 18 Reuse fields – which includes cash reinvestment and funding source data

What must match between reports?
The SFTR reporting format includes 153 reportable fields, some of which must match between reports of the two counterparties. There will be two phases of the trade repositories’ reconciliation process, with the first phase consisting of 62 matching fields which are required for the initial SFTR implementation. A second phase, starting 2 years after the start of the reporting obligation, will contain another 34 fields which are required to match, bringing the total number of matching fields to 96.

In this context, it is particularly important that the globally unique transaction identifier - a UTI, be used and shared between the parties to the trade. The parties should agree who is to generate the UTI. If no such agreement is in place, the regulation describes a waterfall model for who would be the generating party. The generating party is obligated to share the UTI with the counterpart in an electronic format in a timely manner for both parties to be able to fulfil their T+1 reporting obligation.

INTERACTIVE BROKERS DELEGATED REPORTING SERVICE TO HELP MEET YOUR REPORTING OBLIGATIONS

FCs, NFCs and NFC-s must report details of their transactions to authorised Trade Repositories. This obligation can be discharged directly through a Trade Repository, or by delegating the operational aspects of reporting to the counterparty or a third party (who submits reports on their behalf).

As mentioned above, when executing an SFT with an FC, an NFC- does not have to submit relevant reports, as these are submitted by the FC on the NFC-‘s behalf.
However, NFC-s who do not execute SFTs with an FC are required to submit reports.
Depending on the different setups available, Interactive Brokers clients’ may not be executing an SFT with an FC, and therefore Interactive Brokers offers a delegated reporting service, to ensure its clients can report all SFTs they execute.

As mentioned above, SFTR reports submitted by the two counterparties of an SFT must contain the same UTI. To ensure this requirement is satisfied, Interactive Brokers suggests that all of its clients in scope delegate reporting to Interactive Brokers.
Interactive Brokers will take care of generating matching UTIs when submitting its own reports and those of its clients on whose behalf it submits reports.

Validating Explicit Permissions - The European Securities and Markets Authority (ESMA) have introduced a mandate whereby trade repositories need to confirm a delegated reporting agreement is in place between the two parties before accepting and sending on any reports to the regulator. Due to this, the Trade Repository that Interactive Brokers works with - UnaVista, has introduced a process to collect this information. As a client of Interactive Brokers, if you opt for delegated reporting, this mandate will apply.

UnaVista will collect this information by sending clients an email asking for confirmation from the client that they have delegated their SFTR reporting to Interactive Brokers. – This will be a one-time process for each client. Once confirmed, UnaVista will accept the reports and send them onto the regulator.

Securities Financing Transactions: Currently, Interactive Brokers clients can execute two types of SFTs: margin lending and stock loans. SFTR also requires reporting information on funding sources and collateral reuse.

Trade repository Interactive Brokers use: Interactive Brokers (U.K.) Limited will use the services of Unavista Trade Repository which is part of the London Stock Exchange Group PLC ("LSEG"), based in the United Kingdom.

Timetable to report to Trade repositories: The reporting start date is 13 July 2020:
July 2020: Report Phase 1 – July 13 2020 reporting go-live for banks, investment firms & Credit Institutions and CCPs & CSDs
Oct 2020: Report Phase 2 - Insurance, UCITS, AIF & Pensions
Jan 2021: Report phase 3 - Reporting go-live for Non-Financial Companies

THIS INFORMATION IS GUIDANCE FOR INTERACTIVE BROKERS CLEARED CUSTOMERS ONLY.
NOTE: THE INFORMATION ABOVE IS NOT INTENDED TO BE A COMPREHENSIVE OR EXHAUSTIVE NOR A DEFINITIVE INTERPRETATION OF THE REGULATION, BUT A SUMMARY OF ESMA'S SFTR REGULATION AND RESULTING TRADE REPOSITORY REPORTING OBLIGATIONS

IBKR Australia Short Position Reporting

Introduction

You can request IBKR Australia perform your Australian short position reporting obligations on your behalf.

What is a short position?

A short position arises where the quantity of an eligible product that you hold is less than the quantity of the eligible product that you have an obligation to deliver, such as when you engaged in short selling an ASX-listed security and borrowed securities from IBKR to cover your delivery obligation.

When do I have a reporting obligation?

Short sellers have an obligation to report certain short positions to the Australian Securities & Investments Commission (ASIC). Reporting on short positions that are below the thresholds set by ASIC is optional. A short position does not need to be reported to ASIC when:

  • The value of the position is AUD 100,000 or less; and
  • The position is 0.01% or less of the total quantity of securities or products on issue for that security or product.

Otherwise, the short position must be reported.

The following table provides a convenient summary of when a short position must be reported (“Reportable Short Position”):

What you need to know about short position reporting:

It is important that any clients trading or wishing to trade eligible products understand that they may have an obligation to report their Reportable Short Positions to ASIC daily.

This obligation applies to any short sellers with a Reportable Short Position under the rules whether inside or outside of Australia. By default, IBKR Australia does not report Reportable Short Positions on your behalf, so you must arrange for the reporting of your short positions (if required).

IBKR Australia, along with many third-party firms, can provide this service to you subject to applicable terms and conditions.

If you would like IBKR Australia to perform your short position reporting for eligible products held in your IBKR account, please enrol in the service via Client Portal. Currently, this service is offered at no additional cost to IBKR Australia clients.

Please note:

  • If your account does not allow shorting of securities, there is no need to sign up for this service.
  • IBKR Australia will only offer the option to report all short positions and not only your Reportable Short Positions.

If you enroll in the IBKR short position reporting service:

  • You must not hold any other eligible products with any other bank, broker or custodian because our systems use the positions in your IBKR account to determine whether you have a reportable short position. We cannot accurately calculate your short position if you hold eligible positions elsewhere.
  • You must ensure that the information you provide us is complete and accurate in all respects, as we are required to provide ASIC with certain personal information about you.
  • The obligation to report your short positions is always yours and is not transferred to IBKR under any circumstance (i.e. IBKR does not become responsible for your short position reporting obligations);
  • If, for any reason, we are unable to report your short positions to ASIC before the deadline or at all, we will endeavour to inform you as early as possible so that you can make alternative arrangements. However, we make no warranties that you will receive the notification prior to the reporting deadline.

How do I apply?

To apply, all you need to do is log in to your account via the Client Portal, navigate to the Settings > Account Settings menu, click on the “ASIC Short Position Reporting” icon and follow the prompts.

As part of this process, you will need a unique identifier. For Australian applicants, this can be your ACN or ARBN. For overseas clients this can be your SWIFT BIC. Alternatively, you may register with ASIC to obtain a unique identity code.

Upon electing IBKR Australia to perform this short position reporting obligation on your behalf, you must warrant that the reportable short positions held with IBKR Australia represent your entire portfolio in applicable Reportable Short Positions and acknowledge that IBKR Australia will rely on this representation and warranty in good faith on each occasion that it makes a short position report to ASIC on your behalf.

Where can I get more information?

Clients seeking more information on their short position reporting obligations should refer to the following resources:

  • ASIC Regulatory Guide 196, which contains an overview of the applicable short selling rules and disclosure requirements.
  • ASIC Info Sheet 98, which provides an overview of how to submit short position reports to ASIC via FIX and a list of vendors who may be able to assist you with your short position reporting obligations if you don’t elect to enrol in the IBKR short position reporting service.

 

Presentación de los productos empaquetados o basados en seguros

ANTECEDENTES
En 2018 entró en vigor un reglamento europeo que tiene por objeto la protección de los clientes "minoristas" por medio de la divulgación de información adecuada en el momento de comprar determinados productos. Este reglamento, conocido como el Reglamento sobre los productos de inversión minorista vinculados y los productos de inversión basados en seguros (MiFID II, Directiva 2014/65/EU), abarca cualquier inversión en la que el importe reembolsable al cliente esté sujeto a fluctuaciones debido a la exposición a valores de referencia o a la evolución de uno o más activos no adquiridos directamente por el inversor minorista. En este tipo de productos se encuentran opciones, futuros, CFD, ETF, ETN y otros tipos de productos estructurados.

Es importante tener en cuenta que los brókeres no pueden permitir que los clientes minoristas compren productos empaquetados o basados en seguros salvo si el emisor de dichos productos proporciona el documento de advertencia correspondiente con el fin de que los brókeres lo puedan facilitar a los clientes. Este documento, denominado 'documento de datos fundamentales', contiene información de referencia sobre la descripción, perfiles de riesgos y rentabilidad, y posibles escenarios de rentabilidad. Los clientes estadounidenses no están afectados por los productos empaquetados o basados en seguros y, por tanto, los emisores de algunos ETF cotizados estadounidenses más populares normalmente optan por no elaborar documentos de datos fundamentales. Es por esto por lo que los clientes minoristas EEE no pueden comprar dicho producto.

CLASIFICACIÓN DE CLIENTES
IBKR clasifica los clientes particulares como clientes "minoristas" de manera predeterminada, dado que esta clasificación les permite obtener el nivel de protección más amplio ofrecido por el MiFID. Los clientes clasificados como “profesionales” no obtienen el mismo nivel de protección que los clientes minoristas, pero no están sujetos a los requisitos expuestos en los documentos de datos fundamentales. De conformidad con lo dispuesto en el MiFID II, en la categoría de clientes "profesionales" se incluyen entidades reguladas, grandes empresas y particulares que hayan solicitado su reclasificación como clientes profesionales electivos ('elective professionals') y que cumplen los requisitos establecidos en el MiFID II sobre conocimientos, experiencia y competencias financieras.

IB proporciona un proceso en línea que permite que los clientes minoristas soliciten su reclasificación como profesionales. En el artículo KB3298 se proporciona información relacionada con los requisitos de reclasificación, junto con los pasos a seguir para realizar revisión de la clasificación. Para solicitar directamente el cambio de su clasificación, puede encontrar el cuestionario en Client Portal/Gestión de cuenta.
 

PRIIPs Overview

BACKGROUND
In 2018, an EU regulation, intended to protect “Retail” clients by ensuring that they are provided with adequate disclosure when purchasing certain products took effect. This regulation is known as the Packaged Retail and Insurance-based Investment Product Regulation (MiFID II, Directive 2014/65/EU), or PRIIPs, and it covers any investment where the amount payable to the client fluctuates because of exposure to reference values or to the performance of one or more assets not directly purchased by such retail investor. Common examples of such products include options, futures, CFDs, ETFs, ETNs and other structured products.

It’s important to note that a broker cannot allow a Retail client to purchase a product covered by PRIIPs unless the issuer of that product has prepared the required disclosure document for the broker to provide to the client. This disclosure document is referred to as a Key Information Document, or KID, and it contains information such as product description, cost, risk-reward profile and possible performance scenarios. U.S. clients are not impacted by PRIIPs, so the issuers of some of the more popular U.S. listed ETFs often elect not to create a KID. This means that EEA Retail client may not purchase the product.

CLIENT CATEGORISATION
IBKR categorises all individual clients as “Retail” by default as this affords clients the broadest level of protection afforded by MiFID. Client who are categorised as “Professional” do not receive the same level of protection as “Retail” but are not subject to the KIDs requirement. As defined under MiFID II rules, “Professional” clients include regulated entities, large clients and individuals who have asked to be re-categorised as “elective professional clients” and meet the MiFID II requirements based on their knowledge, experience and financial capability.

IB provides an online step-by-step process that allows “Retail” to request that their categorisation be changed to “Professional". The qualifications for re-categorisation along with the steps for requesting that one’s categorisation be considered are outlined in KB3298 or, to directly apply for a change in categorisation, the questionnaire, is available in the Client Portal/Account Management.
 

Interactive Brokers (U.K.) Limited – Clasificación MiFID

Introducción

En el acto legislativo de la Unión Europea conocido como 'Directiva sobre Mercados de Instrumentos Financieros', o MiFID, por sus siglas en inglés, enmendado por el MiFID II, se requiere que Interactive Brokers (U.K.) Limited (IBUK) clasifique sus clientes en función de su conocimiento y experiencia entre 'clientes particulares', 'clientes profesionales' o 'contrapartes elegibles'. 

De conformidad con el reglamento de la Financial Conduct Authority, IBUK categoriza la mayoría de los clientes como 'particulares', lo que les ofrece un mayor grado de protección.
 
Solo aquellos clientes que son o entidades reguladas o fondos gestionados por gestores de fondos regulados se clasifican como clientes profesionales per se.

Las principales diferencias respecto de las regulaciones legales entre los clientes profesionales y los clientes particulares son las siguientes:

1. Descripción de la naturaleza y los riesgos de los paquetes de inversión: Las empresas que ofrezcan servicios de inversión conjuntamente con otro servicio o producto, como condición para el mismo acuerdo con un cliente minorista, deben cumplir lo siguiente: (i) informar a los clientes minoristas si los riesgos asociados a dicho acuerdo serán diferentes de los riesgos asociados a los componentes considerados por separado; y (ii) proporcionar a los clientes minoristas una descripción detallada de los diferentes componentes del acuerdo y del modo en el que la interacción entre ellos modifica los riesgos. Dichos requisitos no se aplican a los clientes profesionales. No obstante, IBUK no realizará dicha distinción excepto en el caso especificado en el punto 3 que figura más adelante.

2. Medidas para la protección de los inversores sobre la provisión de contratos por diferencia (CFD): La Asociación Europea de Valores y Mercados (AEVM) ha establecido medidas de intervención de productos para la provisión de CFD a los clientes minoristas. Entre estas medidas se incluyen las siguientes: (i) nuevos límites de apalancamiento en la apertura de una posición, los cuales variarán en función de la volatilidad del mercado subyacente; (ii) una norma de liquidación de la garantía por cuenta, la cual estandariza el porcentaje de margen al que los proveedores están obligados a liquidar uno o más CFD abiertos; (iii) protección ante saldos negativos para las cuentas;
(iv) restricciones en los incentivos ofrecidos para negociar CFD; y (v) una advertencia de riesgo estandarizada en la que se incluye el porcentaje de pérdidas de las cuentas de inversores minoristas del proveedor de CFD. Dichos requisitos no se aplican a los clientes profesionales.

3. Comunicación con los clientes: Las empresas deben asegurarse de que sus comunicaciones con los clientes son imparciales, transparentes y correctas. No obstante, la manera en la que una empresa se comunica con sus clientes (acerca de la empresa, sus servicios y productos y sus remuneraciones) puede variar entre los clientes minoristas y profesionales. Las obligaciones de la empresa en lo que se refiere a la elaboración de detalles, el medio utilizado y el calendario de la provisión de información varía en función de los clientes minoristas o profesionales. Los requisitos para proporcionar documentos sobre determinados productos específicos como, por ejemplo, documentos de información clave (KID) para productos de inversión minorista empaquetados y productos de inversión basados en seguros (PRIIP), no se aplican a los clientes profesionales.

4. Notificación sobre la depreciación en el valor: Las firmas que dispongan de cuentas de clientes minoristas con posiciones en instrumentos financieros apalancados u operaciones causantes de pasivo contingente deben informarles en los casos en los que el valor inicial de cada instrumento se deprecie un 10 por ciento y posteriormente a múltiplos del 10 por ciento. Dichos requisitos no se aplican a los clientes profesionales.

5. Idoneidad de los servicios: Al examinar la idoneidad de los servicios sin asesoramiento, puede que se requiera que la empresa determine si el cliente tiene experiencia y conocimientos suficientes para entender los riesgos que conllevan los productos o servicios ofrecidos o solicitados. Cuando dicho requisito de evaluación de la idoneidad se aplique a un cliente, la empresa podrá suponer que el cliente profesional dispone de la experiencia y conocimiento necesarios para comprender los riesgos que conllevan estos servicios u operaciones de inversión concretos, o los tipos de transacciones o productos, para los que el cliente es clasificado como cliente profesional. La empresa no hará la misma suposición para los clientes minoristas, y debe evaluar si dichos clientes minoristas disponen del nivel de conocimientos y experiencia necesarios.
 

IBUK no proporciona servicios de asesoramiento y no está obligado a solicitar información o adherirse a los procedimientos de evaluación para los clientes profesionales al examinar la idoneidad de un servicio o producto concretos. 

6. Exclusión de responsabilidades: La capacidad de la empresa para excluirse o restringir cualquier deber o responsabilidad que deba a los clientes es menor según las reglas de la FCA en el caso de los clientes minoristas frente a los clientes profesionales.

7. Defensor de servicios financieros: El servicio del defensor de servicios financieros del Reino Unido no está a disposición de los clientes profesionales, excepto si son, por ejemplo, consumidores, pequeñas empresas o particulares que actúen al margen de su negocio, empresa o profesión.

8. Compensación: IBUK es miembro del UK Financial Services Compensation Scheme ('Plan de compensación de servicios financieros del Reino Unido'). Puede que sea elegible para reclamar una compensación en este plan si IBUK no puede cumplir con sus obligaciones. Esto dependerá del tipo de empresa y de las circunstancias de la reclamación; las compensaciones solo están disponibles para un determinado tipo de demandantes y reclamaciones en función del tipo de negocio. La elegibilidad a la compensación con este plan se determina en las reglas aplicables a dicho plan.
 

Clasificación como cliente profesional

IBUK permite que los clientes minoristas se clasifiquen como profesionales. Los clientes reciben una notificación sobre su categoría de cliente y pueden consultarla en cualquier momento en Gestión de cuenta, en Ajustes > Ajustes de cuenta > Categoría de cliente de MiFID. En esa misma página, los clientes pueden solicitar el cambio de clasificación de categoría MiFID.

IBUK examinará el cambio de clasificación de minoristas a profesionales en los dos casos siguientes:

1. Los clientes minoristas pueden notificar a IBUK que deberían haberse clasificado como profesionales per se, de conformidad con las normas de FCA, dado que cumplen uno de los requisitos siguientes:

(i) están autorizados o regulados a operar en los mercados financieros;

(ii) una grande empresa que cumple dos de los volúmenes siguientes:

(a) total del balance: 20 000 000 EUR;
(b) volumen de negocios neto: 40 000 000 EUR;
(c) fondos propios: 2 000 000 EUR;

(iii) un inversor institucional cuya actividad principal sea la inversión en instrumentos financieros. En este se incluyen las entidades dedicadas a las titulizaciones de activos u otras transacciones financieras.

2. IBUK puede considerar los clientes como clientes profesionales optativos si, basándose en una evaluación de la experiencia, competencias y conocimientos del cliente, IBUK está seguro de que el cliente es capaz de tomar sus propias decisiones de inversión y comprender los riesgos implicados a la luz de la naturaleza de las transacciones o de los servicios previstos. Los clientes que no cumplan los requisitos de clasificación como clientes profesionales per se pueden solicitar clasificarse como profesionales electivos.

Para obtener esta clasificación, los clientes minoristas deben facilitar pruebas de que cumplen con al menos dos (2) de los criterios siguientes:

1. Durante los últimos cuatro (4) trimestres, el cliente llevó a cabo operaciones en instrumentos financieros con un volumen significativo y con una frecuencia promedio de diez (10) por trimestre.

Para determinar el volumen 'significativo', IBUK tiene en cuenta lo siguiente:

a. durante los últimos cuatro trimestres, se produjeron un mínimo de cuarenta (40) operaciones;
b. durante cada uno de los cuatro (4) trimestres, se realizó un mínimo de una (1) operación;
c. el valor nocional de las principales cuarenta (40) operaciones en los últimos cuatro (4) trimestres es superior a 200 000 EUR; y
d. la cuenta dispone de un valor de activo neto superior a 50 000 EUR.

Las transacciones en Spot FX y metales OTC sin distribuir no se consideran a efectos de dichos cálculos.

2. El cliente dispone de una cartera de instrumentos financieros (incluyendo efectivo) que excede los 500 000 EUR (o equivalente);

3. El cliente es un titular de una cuenda individual o un operador de una cuenta de organización que trabaja o ha trabajado en el sector financiero durante al menos un año en una posición profesional en la que se requieren conocimientos necesarios de los productos negociados.

Tras la revisión y verificación de toda la información y pruebas facilitadas para su corrobación, IBUK clasificará los clientes en caso de que se cumplan todas las condiciones.

Los clientes minoristas que soliciten clasificarse como profesionales deben leer y entender las advertencias facilitadas por IBUK antes de presentar su solicitud.

Clasificación como cliente minorista Los clientes profesionales pueden solicitar a IBUK clasificarse como clientes minoristas en la página de Gestión de cuenta mencionada anteriormente (en Ajustes> Ajustes de cuenta> Categoría de cliente de MiFID).

IBUK acepta todo tipo de solicitudes, con la única excepción de las de las entidades reguladas o los fondos gestionados por gestores de fondos regulados, los cuales se clasifican como clientes profesionales per se.

ESTA INFORMACIÓN SE OFRECE COMO GUÍA UNICAMENTE PARA CLIENTES COMPENSADOS DE INTERACTIVE BROKERS.
NOTA: LA INFORMACIÓN MENCIONADA ANTERIORMENTE NO ES UNA GUÍA COMPLETA, EXHAUSTIVA NI UNA INTERPRETACIÓN DEFINITIVA DEL REGLAMENTO, SINO UN RESUMEN DE LA CLASIFICACIÓN DE CLIENTES Y LA POLÍTICA DE CLASIFICACIÓN DE IBUK

 

 

Interactive Brokers (U.K.) Limited – MiFID Categorisation

Introduction

The European Union legislative act known as the Markets in Financial Instruments Directive, or MiFID, as amended by MiFID II, requires Interactive Brokers (U.K.) Limited (IBUK) to classify each Client according to their knowledge, experience and expertise: "Retail", "Professional" or "Eligible Counterparty". 

In accordance with the Financial Conduct Authority rules, IBUK categorises most clients as Retail clients, providing them with a higher degree of protection.
 
Only those clients that are either regulated entities or funds managed by regulated fund managers, are categorised as Per Se Professional Clients.

The main differences in regulatory protections afforded to Professional Clients as compared with Retails Clients are:

1. Description of the nature and risks of packaged investments: A firm that offers an investment service with another service or product or as a condition of the same agreement with a retail client must: (i) inform retail clients if the risks resulting from the agreement are likely to be different from the risks associated with the components when taken separately; and (ii) provide retail clients with an adequate description of the different components of the agreement and the way in which its interaction modifies the risks. The above requirements do not apply in respect of professional clients. However, IBUK will not make such differentiation apart from the case specified under point 3 below.

2. Investor protection measures on the provision of Contracts for Differences (“CFDs”): The European Securities and Markets Authority (“ESMA”) introduced product intervention measures on the provision of CFDs to retail investors. The measures include: (i) New leverage limits on the opening of a position, which vary according to the volatility of the underlying; (ii) A margin close out rule on a per account basis that standardises the percentage of margin at which providers are required to close out one or more open CFDs; (iii) Negative balance protection on a per account basis;
(iv) A restriction on the incentives offered to trade CFDs; and (v) A standardised risk warning, including the percentage of losses on a CFD provider’s retail investor accounts.The above requirements do not apply in respect of professional clients.

3. Communication with clients: A firm must ensure that its communications with all clients are fair, clear and not misleading. However, the way in which a firm may communicate with professional clients (about itself, its services and products, and its remuneration) may be different from the way in which the firm communicates with retail clients. A firm’s obligations in respect of the level of details, medium and timing of the provision of information are different depending on whether the client is a retail or professional client. The requirements to deliver certain product-specific documents, such as Key Information Documents (“KID”) for Packaged Retail and Insurance-based Investment Products (“PRIIPs”), are not applied to professional clients.

4. Depreciation in value reporting: A firm that holds a retail client account that includes positions in leveraged financial instruments or contingent liability transactions must inform the retail client, where the initial value of each instrument depreciates by 10 per cent and thereafter at multiples of 10 per cent. The above requirements do not apply in respect of professional clients.

5. Appropriateness: When assessing appropriateness for non-advised services, a firm may be required to determine whether the client has the necessary experience and knowledge in order to understand the risks involved in relation to the product or service offered or demanded. Where such an appropriateness assessment requirement applies in respect of a client, the firm may assume that a professional client has the necessary experience and knowledge in order to understand the risks involved in relation to those particular investment services or transactions, or types of transaction or product, for which the client is classified as a professional client. A firm may not make such an assumption for a retail client and must determine that a retail client does have the necessary level of experience and knowledge.
 

IBUK provides non-advised services and is not required to request information or adhere to the assessment procedures for a professional client when assessing the appropriateness of a given service or product as with a retail client, and IBUK may not be required to give warnings to the professional client if it cannot determine appropriateness with respect to a given service or product. 

6. Exclusion of liability: Firms’ ability to exclude or restrict any duty or liability owed to clients is narrower under the FCA rules in the case of retail clients than in respect of professional clients.

7. The Financial Services Ombudsman: The services of the Financial Ombudsman Service in the UK may not be available to professional clients, unless they are, for example, consumers, small businesses or individuals acting outside of their trade, business, craft or profession.

8. Compensation: IBUK is a member of the UK Financial Services Compensation Scheme. You may be entitled to claim compensation from that scheme if IBUK cannot meet its obligations to you. This will depend on the type of business and the circumstances of the claim; compensation is only available for certain types of claimants and claims in respect of certain types of business. Eligibility for compensation from the scheme is determined under the rules applicable to the scheme.
 

Re-categorisation as Professional Client

IBUK allows its Retail Clients to request to be re-categorised as Professional Clients. Clients are notified of their Client Category and can check it at any time from Account Management, under Settings> Account Settings> MiFID Client Category. From this same screen, Clients can also request to change their MiFID Category.

IBUK will consider re-categorising Retail Clients to Professional Clients in two instances:

1. Per Se Professional Clients can notify IBUK that they consider that they should have been categorised as Per Se Professionals under the FCA rules, because at least one of the following conditions applies:

(i) authorised or regulated to operate in the financial markets; or

(ii) a large undertaking meeting two of the following size requirements on a company basis:

(a) balance sheet total of EUR 20,000,000;
(b) net turnover of EUR 40,000,000;
(c) own funds of EUR 2,000,000;

(iii) an institutional investor whose main activity is to invest in financial instruments. This includes entities dedicated to the securitisation of assets or other financing transactions.

2. IBUK may treat Clients as Elective Professional Clients if, based on an assessment of the Client’s expertise, experience, and knowledge, IBUK is reasonably assured that, in light of the nature of the transactions or services envisaged, the Client is capable of making its own investment decisions and understand the risks involved. Clients who do not meet the requirements to be categorised as Per Se Professional Clients can still request to be categorised as Elective Professional Clients.

To obtain such re-categorisation, Retail Clients must provide evidence that they satisfy at least two (2) of the following criteria:

1. Over the last four (4) quarters, the Client conducted trades in financial instruments in significant size at an average frequency of ten (10) per quarter.

To determine the significant size IBUK considers the following:

a. During the last four quarters, there were at least forty (40) trades; and
b. During each of the last four (4) quarters, there was at least one (1) trade; and
c. The total notional value of the top forty (40) trades of the last four (4) quarters is greater than EUR 200,000; and
d. The account has a net asset value greater than EUR 50,000.

Trades in Spot FX and Unallocated OTC Metals are not considered for the purpose of this calculation.

2. The Client holds a portfolio of financial instruments (including cash) that exceeds EUR 500,000 (or equivalent);

3. The Client is an individual accountholder or a trader of an organisation account who works or has worked in the financial sector for at least one year in a professional position which requires knowledge of products it trades in.

Upon review and verification of the information and supporting evidence provided, IBUK will re-categorise clients if all relevant conditions are met to satisfaction.

Retail Clients requesting to be re-categorised as Professional Accounts must read and understand the warning provided by IBUK before the relevant request is submitted.

Re-categorisation as Retail Client Professional Clients can request IBUK to be re-categorised as Retail Clients, from the same Account Management page described above (under Settings> Account Settings> MiFID Client Category).

With the sole exception of regulated entities or funds managed by regulated fund managers, which are categorised as Per Se Professional Clients, IBUK accepts all such requests.

THIS INFORMATION IS GUIDANCE FOR INTERACTIVE BROKERS FULLY DISCLOSED CLEARED CUSTOMERS ONLY.
NOTE: THE INFORMATION ABOVE IS NOT INTENDED TO BE A COMPREHENSIVE, EXHAUSTIVE NOR A DEFINITIVE INTERPRETATION OF THE REGULATION, BUT A SUMMARY OF IBUK’S APPROACH TO CLIENT CATEGORISATION AND RE-CATEGORISATION POLICY.

 

 

Syndicate content