Investor protection

Markets in Financial Instruments Directive (MiFID) is the Directive of the European Union, included into the legislation of the Republic of Latvia by the „Financial Instrument Market Law ” and the FCMC regulations. The Directive represents the set of requirements toward the whole European financial sector in order to create the unified European financial instruments market.

The main objective of the Directive is to ensure the unified regulatory regime governing trading of financial instruments across all member states of the EU. The main principles of MiFID are: increased protection of investors, provision of high-quality investment services and guarantee of market transparency.

Renesource Capital is the European investment company and it provides its services in compliance with the MiFID. Accordingly, the Company has all necessary protocols and policies which ensure full compliance with the provisions of the Directive. The aforementioned documents can be provided by a customer’s request, and they are also available in the “Documents” section of our website.

Financial instruments belonging to customers are held on Renesource Capital account in strict compliance with regulatory acts applicable to these FI and are kept on account opened in the name of the Company with the indication that the financial instruments belong to the customers of the Company (nominee account). Financial instruments belonging to many customers are held in a nominee account.

This being said, the Company maintains segregated accounting of FI belonging to its customers and ensures the opportunity to separate at any time the FI belonging to a specific customer from the FI belonging to other customers or to the Company itself.

1. Customer categorization

In accordance with the Law requirements, one of the statuses defined by the Law should be granted to any customer to whom the Company provides services in financial markets:

  • Retail customer;
  • Professional customer;
  • Eligible counterparty.

Customer’s statuses description, according to the Markets in Financial Instruments Directive (MiFID) of the European Union

2. Scope

Renesource Capital offers customers the opportunity to trade the following financial instruments: FOREX, CFDs, equities, funds shares, futures, options and over-the-counter energy swaps. You can find more information about the offered instruments and trading conditions in the corresponding sections

3. Best execition

Renesource Capital takes all reasonable steps to achieve the best possible result when executing customer orders. The term “best execution” is not limited to the execution price. It includes other factors such as speed and likelihood of execution of an order.

When processing customer orders, Renesource Capital company follows the specially developed Order Execution Policy. According to this Policy, the Company takes into account:

  • The customer’s status;
  • The characteristics of the customer order;
  • The characteristics of the financial instrument that is the subject of the order;
  • The characteristics of the execution venues or entities to which that order can be directed.
4. Execution venues

Renesource Capital executes customer orders in venues to which it has direct access or through through the ones made availabl by its business partners. Alternative order execution venues may be used with assistance of external brokers such as foreign banks, brokerage companies, investment companies and so on. However, in such cases, when selecting the business partner, Renesource Capital takes into account extra expenses, reputation of a partner, speed and likelihood of execution of a transaction and other significant factors to ensure the best possible result to the customer.

To see the list of the execution venues

5. Transaction where Best Execution has limited csope

In some instances evaluation of execution quality may be complicated, for example:

  • Single Venue Transactions: In instances where only one execution venue exists and there are no alternative pricing sources, time of execution becomes the main criteria for evaluation of execution quality.
  • Structured transactions: In instances of structured transactions in over-the-counter financial instruments, the possibility to evaluate execution quality is very limited. Such transactions include off-exchange transactions specifically structured to suit individual needs of a customer and off-exchange transactions that have no alternative pricing sources.
  • Specific instructions: In instances where a customer specifies additional (non-standard) conditions for order execution, the possibility to ensure best execution may be limited.
6. Direct market access

In cases where the Company provides a customer with direct market access using electronic trading platforms, Renesource Capital duties to ensure best execution are considered to be satisfied.

Risk Disclosure Statement. Margin transactions (Forex, contracts for difference CFD, futures and futures options, stock options, REPO transactions, transactions in over-the-counter derivatives and transactions using broker credit, including selling short) involve higher risk. The level of risk increases with the leverage ratio. As the result of margin transactions, relatively high profits are possible with low level of initial investments, as well as significant losses which may exceed the principal amount of investments or the amount of the collateral. Please ascertain whether margin transactions in their essence and content suit the risk profile that was assigned to you by AS IBS Renesource Capital and whether the content of margin transactions corresponds to your investment goals.

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