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WHAT IS MiFID?

What is MiFID and what is its purpose?

MiFID is the "Markets in Financial Instruments Directive". This directive is a key part of a package of European Union laws aimed at creating a single, more transparent market in financial services across all EU member states. In particular, MiFID aims to harmonise the rules governing the activities of financial services firms, to promote easier cross border business, increase market transparency and improve investor protection. It replaces the Investment Services Directive (ISD), which has been in place since 1995.

National authorities within the EU are required to implement MiFID in their respective countries with effect from 1 November 2007. To this end, Cyprus introduced legislation to implement Directive 2004/39/EC of the European Parliament and of the Council on Markets in Financial Instruments and Directive 2006/31/EC of the European Parliament and of the Council of 5th April, 2006. The relevant legislation is the Investment Services and Activities and Regulated Markets Law of 2007, number 144(1) of 2007, which was passed by the Cyprus House of Representatives on 25 October 2007, replacing the previous Investment Firms Law of 2002 with effect 1 November 2007.

Click here to view the: LAW WHICH PROVIDES FOR THE PROVISION OF INVESTMENT SERVICES, THE EXERCISE OF INVESTMENT ACTIVITIES, THE OPERATION OF REGULATED MARKETS AND OTHER RELATED MATTERS.

 

CLIENT CATEGORISATION

ATONLINE LIMITED is regulated by the Cyprus Securities and Exchange Commission ("CySEC"). In accordance with CySEC rules ("the Rules"), we are required to classify our clients and counterparties into one of three regulatory categories, (1) Retail Clients, (2) Professional Clients and (3) Eligible Counterparties.

The greatest level of regulatory protection is afforded to Retail Clients, and the lowest level to Eligible Counterparties.

A Retail Client is a client who is neither a Professional Client nor an Eligible Counterparty.

Professional Clients include:

  • entities which are required to be authorised or regulated to operate in the financial markets, including credit institutions, investment firms, insurance companies, collective investment schemes and pension funds and their management companies, commodities and commodity derivative dealers, and other institutional investors;
  • large undertakings meeting two of the following size requirements on a company basis:
    • balance sheet total of €20 million;
    • net turnover of €40 million;
    • own funds of €2 million;
  • national and regional governments, public bodies that manage public debt, central banks and international and supranational institutions; or
  • other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitisation of assets or other financing transactions.

Firms which are treated automatically as Eligible Counterparties include:

  • Investment firms;
  • Credit institutions;
  • Insurance companies;
  • UCITS and their management companies;
  • Pension funds and their management companies;
  • Other authorised and regulated financial institutions;
  • Certain undertakings exempted from the application of MiFID;
  • National governments and public bodies that deal with public debt; and
  • Central banks and supranational institutions.

Under MiFID, Professional Clients and Retail Clients may move between categories. In particular, Retail Clients can request to be treated as Professional Clients.

Under MiFID, Investment Firms must take reasonable care to ensure that a Retail Client requesting treatment as a Professional Client is able to meet similar qualitative criteria and, a separate quantitative test. At least two of the following quantitative criteria must be met:

  • the client has carried out transactions, in significant size, on the relevant market at an average frequency of ten per quarter over the previous four quarters;
  • the size of the client's financial instrument portfolio, defined as including cash deposit and financial instrument, exceeds €500,000;
  • the client works or has worked in the financial sector for at least one year in a professional position which requires knowledge of the transactions or services envisaged.

Clients have the right to request a different classification in order to benefit from a higher degree of regulatory protection should they require it. Please bear in mind that it is Atonline Limited’s policy to refrain from serving retail clients.

 

INFORMATION ABOUT FEES AND CHARGES

Prospective Clients: Please contact the Client-on-boarding team either by telephone at +357 22 68 00 15 or by e-mail to who will assist you with your request.
Existing Clients: If in doubt about the Fees and Charges applied by Atonline Limited, please contact your Account Officer, by telephone at +357 22 68 00 15 or by e-mail at .
 

INFORMATION ABOUT SECURITY INTEREST, LIEN AND RIGHT OF SET-OFF

  • Please be advised that pursuant to the Terms of the Investment Services Agreement (herewith “Agreement”), Atonline Limited is entitled to lien on the funds amount or any Financial Instruments in your account and to terminate any of your obligations to Atonline Limited by set-off at any time including the obligation to pay a fee to Atonline Limited and/or compensate its expenses according to the Agreement.
  • No depository has a security interest or lien or right of set-off in relation to Clients’ Financial Instruments or funds.
 

MiFID II, INFORMATION ON THE IDENTITY OF EXECUTION VENUES AND THE QUALITY OF EXECUTION (RTS 28)

Professional Clients report 2017
(pdf, 326 KB)

 

 

POLICIES

Conflicts of Interest Policy
(pdf, 487 KB)
Order Execution Policy
(pdf, 66 KB)
Complaints Policy
(doc, 153 KB)
AML Policy
(pdf, 464 KB)
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and Exchange Commission
   London Stock Exchange