FAQS: Brexit Account Migration

INTRODUCTION

Interactive Brokers Group (“IB”) and its UK affiliate Interactive Brokers (U.K.) Limited (“IBUK”) have been planning for the end of the Brexit transition period, currently scheduled for 31st December 2020, and have been preparing alternative arrangements for our European customers. Our priority is to ensure a seamless transition and continuation in the provision of brokerage services to our customers with minimal disruption and minimal changes. Clients impacted by this event will receive notifications outlining the changes and timelines. Outlined below is a list of Frequently Asked Questions concerning the proposed migration of accounts from IBUK to one of our other European brokers.

FAQs 

Q: What actions is IBKR taking to ensure continuity of brokerage services when the Brexit transition starts January 1, 2021?

A: In 2018 IBKR established Interactive Brokers Luxembourg SARL (“IBLUX”) which received regulatory authorization in November 2019. In addition, we are in the process of creating two additional brokers based in the European Union: Interactive Brokers Ireland Limited (“IBIE”) and Interactive Brokers Central Europe Befektetési ZRt (“IBCE”).

It is our intent to migrate all clients impacted by Brexit to one of these three European Union based brokers (“EU Brokers”) prior to December 31, 2020.  Migration to IBIE and IBCE is subject to receiving regulatory authorization from the relevant National Competent Authority.

 

Q: Which IBKR broker will my account be migrated to?

A: The final decision as to which accounts will be migrated to each of IBLUX, IBIE and IBCE has not yet been determined.  We expect the majority of the clients based in Western Europe will be migrated to IBIE, those in Central and Eastern Europe to IBCE and a select group of clients to IBLUX. Other factors which will be taken into consideration include clients’ account type and positions.

All clients will receive a communication specifying the broker they are scheduled to be migrated to prior to being presented with the migration request.

 

Q: Which clients are affected by this migration plan?

A: Affected clients include individuals residing in the European Union or entity accounts formed within a European Union country. The majority of these accounts are currently serviced by Interactive Brokers (U.K.) Limited (“IBUK”).

 

Q: How is consent provided?

A: You will receive an email asking you to log into your Client Portal once we are ready to migrate your account. Once you log in, you will be provided with the necessary disclosures and Customer Agreement which you can consent to electronically. Clients who do not respond to the initial email will receive a series of reminder emails.

 

Q: What happens if I do nothing?

A: If you fail to respond to our requests to provide consent, your account will eventually be subject to the same trade and transfer restrictions as if you decided not to consent to the transfer. Also note that your account will remain subject to the terms and conditions of your current agreement (including fees and margin policies) until such time it has been migrated to a designated EU Broker, transferred to a broker outside of IBKR or closed.

 

Q: What happens if I do not consent to the transfer?

A: If you do not consent to the transfer of your account to your designated EU Broker, your account may be restricted from opening new transactions or transferring in additional funds and/or positions. These restrictions will not prevent you from transferring your account outside of IBKR.

 

Q: 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.

 

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

A: 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.

 

Q: Will all account balances be transferred at the same time?

A: All balances with the exception of accruals (e.g., interest and dividends) will be transferred at the same time. Accruals will be transferred once the cash is realized. In the case of interest, accruals are generally reversed, and cash posted within the first week of the month following accrual. In the case of dividends, the accrual is reversed, and the offsetting cash is posted on the date the issuer pays the dividend.

 

Q: What will happen to my current account following migration?

A: Your current account will close once all accruals have been posted to cash and transferred to the migrated account. Once closed, it will be inaccessible for trading purposes, however, it will remain accessible via an account selector from the Client Portal for purposes of viewing and printing historical statements.

 

Q: Will IBKR’s commissions and fees change when my account is migrated?

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

 

Q: Will my trading permissions change when my account is migrated?

A: Your trading permissions will remain the same with the exception of accounts migrated to IBLUX accounts which will be restricted from engaging in leveraged forex transactions due to regulatory restrictions. While we do not anticipate similar restrictions to be applicable to IBIE and IBCE accounts, we will notify you should anything change before we ask you to migrate.

 

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

A: Open orders will be carried over to the new account, however, we recommend that clients review their orders immediately following the migration to ensure that the open orders are consistent with their trading intentions.

 

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

A: Accounts maintained with IBUK are subject to the U.S. Pattern Day Trading (PDT) rule as the accounts are introduced to and carried by IBL, 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, IBIE or IBCE will not be introduced to IBL, they will not be subject to the PDT rule.

 

Q: Will I receive a single, combined annual activity statement at year end?

A: 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.

 

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

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

 

Q: Will the migrated account retain the same configuration as the current account?

A: The configuration of the account following migration will match that of the current account to the extent permissible by regulation. This includes attributes such a 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.

 

Q: What happens if IBKR does not receive the regulatory approval necessary to migrate accounts by December 31, 2020?

A: IBLUX, while approved, it is subject to constraints on the permitted scale of its business and licensing for either IBIE or IBCE is therefore necessary to complete the migration prior to December 31, 2020. If a determination is made that neither will receive licensing in time, clients will be contacted with an explanation as to how their account will be treated at the end of the Brexit transition period.

 

Q: Can I continue to address complaints with the UK Financial Ombudsman Service following migration?

A: Clients of IBUK are eligible to have complaints not resolved by IBUK to their satisfaction addressed by the UK Financial Ombudsman Service. Once your account has been migrated to either IBLUX, IBIE or IBCE, the UK Financial Ombudsman Service will no longer apply and we will provide you with information regarding any replacement service. Note that the migration will not impact our internal processing of complaints.

 

Q: How will the migration impact data protection?

A: The migration of your account from IBUK  to either IBLUX, IBIE or IBCE will not affect the way in which we protect your personal data in accordance with data protection rules. Each of IBLUX, IBIE and IBCE will take on the data protection responsibilities and will continue to meet our existing high standards for protecting your personal data.

 

Q: How will my account protection be impacted?

A: The insurance protection available to clients in the event of broker default is generally less favorable in the EU as compared to the UK or US.

Currently, provided they meet eligibility requirements, IBUK clients may be protected in relation to investment services under the UK Financial Services Compensation Scheme (“UK FSCS”) at an amount of up to £50,000. As IBUK clients are carried by our US broker, IBL, the securities segment of their account may be eligible for insurance by the Securities Investor Protection Corporation (“SIPC”) at an amount of up to USD 500,000 (subject to a cash sublimit of USD 250,000).

Under the EU Brokers IBLUX, IBIE and IBCE eligible claimants may be entitled to claim compensation up to a maximum of EUR 20,000. More information on the applicable scheme, coverage and claim eligibility will be provided together with our request to transfer.  

Given the overall capitalization of the Interactive Brokers, Group at USD 8.25 billion, along with the prudent margin policies, enforced across all brokers, which include pre-credit checks prior to order acceptance and automated liquidation of accounts that fall out of margin compliance, we believe that this migration will have no impact upon the overall safety and soundness of clients’ assets.

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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.

 

PRIIP概述

背景
2018年,一项欧盟新规生效,该新规旨在对“零售”客户进行保护,确保其在买入某种产品时能够获得充分的披露信息。该法规被称为零售及保险投资产品组合法规(MiFID II指令2014/65/EU)或PRIIP,其覆盖了所有应付给客户的金额会受参考值或一种或多种并非由该等零售投资者直接买入之资产的业绩表现影响而波动的投资。常见列子包括期权、期货、差价合约、ETF、ETN和其它结构性产品。

值得注意的是,经纪商不得允许零售客户购买PRIIP覆盖的产品,除非该产品的发行机构已经备好了要求的披露文件让经纪商提供给客户。这种披露文件被称为关键信息文件(“KID”),包括产品描述、成本、风险回报情况及可能的业绩情境等信息。美国客户不受PRIIP影响,因此,某些美国挂牌ETF的发行机构通常不会创建关键信息文件。这就意味着,欧洲经济区(“EEA”)的零售客户可能无法购买此类产品。

客户分类
IBKR默认将所有个人客户分类为“零售”客户,因为这样可以给与客户MiFID提供的最广泛的保护。被分类为“专业”客户的客户无法享受“零售”客户级别的保护,但同时也不需要受KID文件要求的限制。根据MiFID II的定义,“专业”客户包括受监管的实体、大型客户和要求被重新分类为“选择性专业客户”并且在知识、经验和财务实力方面满足MiFID II要求的个人。

IB提供了线上程序可供“零售”客户申请将其分类更改为“专业”。重新分类的资格要求以及申请重新分类的步骤,请参见KB3298,如果要直接申请更改分类,可通过客户端/账户管理中的相关问卷进行。
 

盈透证券(英国)有限公司 – MiFID分类

简介

欧盟《金融工具市场法规(MiFID)》及其后修订版MiFID II要求盈透证券英国有限公司【Interactive Brokers (U.K.) Limited (IBUK)】根据客户的知识水平、经验和专长将客户分为“零售客户”、“专业客户”或“合格对手方”这几类。 

根据英国金融行为监管局(“FCA”)的法规,IBUK将大多数客户归为零售客户,为其提供较高层次的保护。
 
只有受监管的实体或由受监管的基金经理管理的基金才会被归为专业客户。

专业客户与零售客户在监管保障方面的主要区别有:

1. 组合投资的性质与风险说明:以其它服务或产品作为协议条件向零售客户提供投资服务的公司必须:(i) 告知零售投资者组合协议的风险是否与各组成部分单独对应的风险有所不同;并(ii) 向零售客户提供协议不同组成部分的充分说明以及各部分相互作用改变风险的方式。上述要求不适用于专业客户。但是,除了下方第3点的情况外,IBUK的处理方法并不会有太多不同。

2. 差价合约(”CFD“)的投资者保护措施:欧洲证券与市场管理局(”ESMA“)针对向零售客户提供差价合约推出了干预措施。措施包括:(i) 对开仓头寸实施新的杠杆限制,根据底层证券的波动率而定;(ii) 以单个账户为单位的保证金平仓规则,标准化了供应商必须平仓一个或多个未结差价合约的保证金百分比水平;(iii) 以单个账户为单位的负余额保护规则;
(iv) 限制交易差价合约的奖励;以及(v) 标准化风险警示,包括披露差价合约供应商出现亏损的零售投资者账户的百分比。上述要求不适用于专业客户。

3. 与客户的沟通:公司必须确保其与所有客户的沟通均清楚、公证、不具误导性。但是,公司与专业客户沟通(有关其自身、其服务与产品以及其报酬)的方式则可能会和与零售客户沟通的方式不同。公司在信息提供的详细程度、使用的工具以及时间选择方面的责任都会根据客户是零售客户还是专业客户而会有所不同。发送某些产品特定文件(如零售及保险投资产品组合(“PRIIP”)关键信息文件(“KID”)的要求不适用于专业客户。

4. 价值减损报告: 若零售客户账户持有杠杆金融产品头寸或涉及或有负债交易,则如果各产品的初始价值下降10%且之后以10%的倍数下跌,则公司必须通知零售客户。上述要求不适用于专业客户。

5. 合适性:在评估非咨询(non-advised)服务的合适性时,公司须确定客户是否具备必要的经验和知识,能够了解所提供或需求之产品或服务相关的风险。该等合适性评估要求应用到客户时,公司会认为专业客户具备必要的经验和知识了解其被分类为专业客户的该等特定投资服务或交易、或该等类型交易或产品相关的风险。但公司不会对零售客户作此假设,而是必须确定零售客户确实具备必要的经验和知识水平。
 

IBUK提供非咨询服务,在评估既定服务或产品的合适性时,不需要像对零售客户那样对专业客户索取信息或遵守评估程序,如果不能确定某一既定服务或产品的合适性,IBUK也不需要向专业客户发出警告。 

6. 责任免除:在FCA法规下,公司针对零售客户免除或限制其自身责任或义务的能力比针对专业客户时要弱。

7. 金融服务申诉机构:英国金融申诉服务机构对专业客户不可用,除非其是,例如,在其自身行业、业务、技能或专业之外行动的消费者、小型企业或个人。

8. 补偿: IBUK是英国金融服务补偿计划的参与成员。如果IBUK不能履行对您的义务,您有权从该计划索取赔偿。这取决于业务的类型以及索赔的情况;补偿仅对某些类型的索赔人和某些类型的业务可用。从补偿计划获取补偿的资格将根据计划适用的规则确定。
 

重新分类为专业客户

IBUK允许其零售客户申请重新分类为专业客户。我们会告知客户其客户分类,并且客户可随时在账户管理(设置>账户设置>MiFID客户类别)中进行查看。客户也可从本页面请求更改其MiFID分类。

在下方两种情况下,IBUK会考虑将零售客户重新分类为专业客户:

1. 固有专业客户可以通知IBUK,因至少满足以下一项条件,其认为其自身根据FCA规则应该被分类为固有专业客户:

(i) 被授权或受监管在金融市场运作;或

(ii) 公司层面满足下方规模要求中任意两项的大型事业:

(a) 资产负债表总额达20,000,000欧元;
(b) 净营业额达40,000,000欧元;
(c) 自有资金达2,000,000欧元;

(iii) 主要活动为投资金融产品的机构投资者。这包括致力于资产证券化或其它融资交易的实体。

2. 如果基于对客户技能、经验和知识的评估,IBUK有理由相信,考虑所设想之交易或服务的性质,客户能够自行做出投资决定并了解其中风险,则IBUK会将客户作为选择性专业客户。不满足固有专业客户要求的客户仍然可以申请被分类为选择性专业客户。

要获得重新分类,零售客户必须提供证据证明其至少满足以下标准中的两项:

1. 在过去4个季度,客户进行大额金融产品交易的平均频率达每季度10次。

IBUK会考虑以下条件来确定大额交易:

a. 过去4个季度内,进行了至少40笔交易;
b. 过去4个季度内每个季度至少进行了1笔交易;
c. 过去4个季度内进行的最大的40笔交易总名义价值大于200,000欧元;
d. 账户净资产价值大于50,000欧元。

现货外汇和未分配OTC金属交易不纳入计算。

2. 客户持有的金融产品(包括现金)投资组合超过500,000欧元(或等值);

3. 客户是个人账户持有人或机构账户交易者,且其至少有一年在金融行业要求具备产品知识的专业岗位工作的经验。

审核并验证客户提供的信息和证明资料后,如果所有相关条件均已符合,则IBUK会对客户进行重新分类。

申请重新分类为专业客户的零售客户在提交相关申请前,必须阅读并了解IBUK的警告信息。

重新分类为零售客户 专业客户可以在上述同一账户管理页面(设置>账户设置>MiFID客户类别)向IBUK提出申请将其重新分类为零售客户。

除了受监管实体或由受监管基金经理管理的基金应分类为固有专业客户外,IBUK可接受所有此类请求。

本信息仅用于指导盈透证券全披露清算服务客户。
注:以上信息不作为全面穷尽式指南,也不是对法规的权威性解释,而是对IBUK对待客户分类和重新分类政策之方法的总结。

 

 

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 – 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.

 

 

Information Regarding Australian Regulatory Status Under IBKR Australia

Introduction
Australian resident customers maintaining an account with Interactive Brokers Australia Pty Ltd (IBKR
Australia), which holds an Australian Financial Services License, number 453554, are initially
classified as a retail investor, unless they satisfy one or more of the requirements to be classified as a
wholesale or professional investor according to the relevant provisions of the Corporations Act 2001.
This article outlines how this process is handled by IBKR Australia.

Australian Regulatory Status
All new customers of IBKR Australia default to being classified as a retail investor unless they produce to
IBKR Australia the required documentary evidence to allow IBKR Australia to treat them as a wholesale or
professional investor. Investors of IBKR Australia will only have their regulatory status change from
retail investor to either wholesale or professional investor subsequent to the required
documentation being received and approved by IBKR Australia.

What is a Wholesale Investor?
The most common way to be classified as a wholesale investor is to obtain a qualified accountant’s
certificate stating that you have net assets or net worth of at least $2.5 million AUD OR have a gross
annual income of at least $250,000 AUD in each of the last two financial years. The qualified
accountant’s certificate is only valid for two years before it needs to be renewed. We have prepared a
wholesale investor booklet, including a pro forma certificate for your accountant to complete, that
can be downloaded [here].

What is a Professional Investor?
In order to qualify as a professional investor, you must have an AFSL, be a body regulated by APRA, be a superannuation fund (but not a SMSF) and/or have net worth or liquid net worth of at least $10 million AUD. If you meet ONLY the financial criteria (i.e. net worth or liquid net worth of at least $10 million AUD), you will need to complete and submit to IBKR Australia the professional investor declaration contained within the professional investor booklet that we have prepared, which can be downloaded [here]. However, if you meet the criteria by virtue of having an AFSL, being a body regulated by APRA, or as a listed company (but not a SMSF), no booklet needs to be submitted.

What about Self-Managed Super Funds (SMSF’s)?
IBKR Australia have decided to treat all SMSF’s as retail investors, notwithstanding that they may meet the requirements to otherwise be classified as a wholesale or professional investor.

What about trusts?
For a trust to be considered as a wholesale investor, all trustees must be considered a wholesale
investor based on the tests described above.

Similarly, for a trust to be considered as a professional investor, all trustees must be considered a
professional investor based on the tests described above.

As a result, if at least one trustee is considered retail, the trust is considered a retail trust, regardless
of the status of any other trustees (if applicable).

Other

  • For a full list of the disclosure documents and legal terms which govern the services IBKR Australia will make available please refer to the IBKR website.
  • For further information on IBKR Australia, click on our Financial Services Guide.
  • For more information or assistance, please contact IBKR Investor Services.

 

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