Customer status
In accordance with the requirements of article 1241 of the Financial Instrument Market Law of the Republic of Latvia, one of three statuses should be granted to persons to whom the Company provides investment services and/or ancillary services:
The requlatory requirement to ensure the exact and appropriate customer categorization is very important, especially taking into account various precautionary measures prescribed by regulatory acts, which are applied depending on customer’s status. All customers are categorized according to level of interest protection in transactions in financial instruments or selected investment services.
Retail customer is a customer who isn’t categorized as either professional customer or eligible counterparty.
Renesource Capital provides the highest level of interest protection to Retail customers.
When accepting orders from a Retail customer to conduct transactions in financial instruments or when accepting such orders and transmitting them for execution, Renesource Capital ensures, as possible, the best execution of a customer’s transaction, taking into account such factors as:
- price / rate of transaction;
- expenses related to its execution;
- speed of execution;
- possibility of settlement;
- transaction size etc.
Regulatory acts of the Republic of Latvia prescribe the highest level of interest protection to those customers who have lesser experience and knowledge in finances, which is typical for Retail customers, as well as segregated holding of customers’ funds and the prescribed in the Investor Protection Law of the Republic of Latvia compensation in amount of 20 000 euro.
Professional customer is a customer who possesses enough experience, knowledge and competence to independently make an investment decision and properly assess the risks assumed.
When accepting orders from a Professional customer to conduct transactions in financial instruments or when accepting such orders and transmitting them for execution, Renesource Capital ensures, as possible, best execution of a customer’s transaction, taking into account such factors as:- price / rate of transaction;
- expenses related to its execution;
- speed of execution;
- possibility of settlement;
- transaction size etc.
In accordance with the Investor Protection Law of the Republic of Latvia no compensation is provided for Professional customers in cases where a credit institution or investment brokerage registered and licensed in the Republic of Latvia is not able to meet its obligations to the investor in full and within the prescribed term.
Renesource Capital can grant a Professional customer status in two cases:
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Professional customer status in accordance with the requirements of article 1241 of the Financial Instrument Market Law of the Republic of Latvia in regard to a customer’s status |
Professional customer status at customer’s request, based on a customer’s application and an agreement with the Company |
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Renesource Capital is entitled to grant Professional customer status to any customer who has made such request. The Company assesses the customer’s competence, knowledge and experience with the purpose of receiving the proper confirmation, and the customer has to comply with at least two of the three following requirements:
Professional customer status may be granted in general or in respect of separate investment services, transactions or a specific transaction or a financial instrument. A customer wishing to receive a Professional customer status shall submit an application to the Company indicating the type of investment services, transaction or financial instrument in respect of which he wishes to obtain the Professional customer status. Prior to granting the Professional customer status, Renesource Capital shall warn the customer in writing on the investor protection rights that will be lost. The customer shall sign a confirmation to certify that such warning was received and that the customer is aware of the possible consequences of lost rights. Renesource Capital and the customer shall sign an agreement about granting the new status to the customer. |
The Company grants Eligible counterparty status to a customer which complies with at least one of the following requirements:
- A brokerage company;
- a credit institution;
- an insurance company;
- an investment management company;
- a pension fund and its management company;
- a national government;
- a central bank;
- a transnational organization;
- a governmental institution that manages the public debt;
- an other financial institution that has a license and performs its activities in accordance with the regulatory acts of a EU member state or another country which govern financial services.