Regulatory Update from INFINOX
We are writing to you in response to a recent change in regulation by the Securities Commission of The Bahamas (“SCB”). In particular, the SCB has introduced new rules around the categorisation of clients of CFD firms.
The Contracts For Difference Rules, 2020 (“new rules”) were adopted and officially gazetted in The Bahamas on 26 May 2020.
There will now be two categories of clients that apply under these new rules, being either Professional Client or Retail Client. Professional Clients will continue to benefit from unrestricted leverage, whereas Retail Clients will be subject to a maximum of 200:1 leverage.
There are a number of other protections that are afforded to Retail Clients that will not apply to Professional Clients. You are therefore encouraged to read the risk warnings in Appendix 1 by clicking the link below and familiarise yourself as they will directly affect you.
As a client of IX Capital Group Limited (“IXCG”), if you are trading with an account of 200:1 and above we will be classifying you as a Professional Client.
Please take note of the risk warnings in Appendix 1, which set out the risks associated with the Professional Client categorisation and highlights the protections that you will lose.
Should you wish to be classified as a Retail Client, you must inform us immediately by emailing [email protected].
The changes will take effect from 13th October 2021.
Appendix 1 – Loss of Protections Notice
As a Professional Client, you will not be subject to leverage restrictions imposed on Retail Clients. You might be exposed to higher leverage limits that can amplify your losses.
Negative Balance Protection
All clients will benefit from Negative Balance protection unless specifically agreed between IXCG and the Client.
Segregating Client Money
All clients are, regardless of category, afforded protection of their client money by requiring firms, on receiving any client money, to promptly place this money into one or more client accounts opened with, for example with an approved and authorized bank, such that there is appropriate segregation of client money from the firm’s own money as a safeguarding measure for the protection of the client’s money.
If a client wishes to opt-out of the segregated client money protection, they should contact [email protected].
Filing a Complaint
As a result of your categorisation as a Professional Client you may lose the right of referring a complaint against IXCG to the SCB.
We will not be required to provide you with the written risk warnings and notice required for retail investors in relation to transactions in complex financial products, in particular derivatives and warrants.
Order handling and Reporting
The SCB does not require us or the Trading Agent to provide you with Account statements unless requested by you. Upon your request, the Trading Agent must provide you with your Account information and Account statements using report features as provided by IXCG. However, all clients, including Professional Clients, will have access to their Account and online trading platform, through which they can access all Transactions on their account in relation to their managed account at any time.
Customers’ understanding of Risk & Appropriateness
We are not obliged to ensure that you understand the nature of any risks involved in any specific investments or transactions that we offer to you. We will assume that you are in a position to judge the kind and degree of risk attached to the various types of investments.
Financial Disclosures on Promotions
Certain SCB rules regarding the form and content of financial promotions will not be applicable. When communicating with you, we are required under the SCB rules that all our communications are fair, clear and not misleading, however we may take into consideration your status as a Professional Client when complying with such requirements and in assessing whether any communication to you is likely to be understood by you in accordance with your level of expertise and contains appropriate information for you to make an informed assessment of its subject matter. This means that any financial promotion we communicate or approve which identifies or promotes a specific investment, we will not be required to provide you with a comprehensive description of the nature of the investment, the commitment required, risks, costs and associated charges, that apply in the case of Retail Clients.
Disclosure of charges, remuneration, or commission
The SCB rules do not require us to inform you, in writing, of the basis or amount of our charges applicable to the services we will be providing and the nature or amount of any other income receivable by IXCG, the Trading Agent or our associates which is attributable to those services. However, IXCG in its sole discretion provides you with details of the fees associated with the Account which are rebated to the Trading Agent (relates to LPOA/IB Agreement).
Modification of certain rules
SCB rules also allow us to modify the application of the rules relating to confirmation of transactions, periodic statements, best execution, custody of assets and client money. If any of these apply, we will explain the potential consequences to you in full.
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