Investment Advice and RTO Agreement

Terms and Conditions for Investment Advice & Reception and Transmission of Orders (RTO) Services

  1. Introduction

Welcome to J. Knobel Investor Services Limited. As a tied agent of Mega Equity Securities and Financial Services Public Limited, we are committed to providing personalized investment advice and reception and transmission of orders (RTO) services tailored to your financial needs. By accessing our services, you acknowledge and agree to the following terms and conditions.

These Terms and Conditions outline the scope of services, your obligations as a client, and how we handle your data in compliance with regulatory requirements, including the European Securities and Markets Authority (ESMA) and the Cyprus Securities and Exchange Commission (CySEC) guidelines.

  1. Definitions
  • Tied Agent: J. Knobel Investor Services Limited, authorized to provide investment advice and RTO services on behalf of Mega Equity Securities and Financial Services Public Limited.
  • Principal: Mega Equity Securities and Financial Services Public Limited, the investment firm holding regulatory authorization and responsibility for client account management, onboarding, and execution of orders.
  • Suitability Assessment: The assessment conducted to evaluate your financial situation, investment objectives, risk tolerance, and experience, forming the basis of the investment advice we provide.
  • RTO (Reception and Transmission of Orders): The process where we receive and transmit your investment instructions to Mega Equity Securities and Financial Services Public Limited for execution.
  • Durable Medium: Any medium that ensures the information is accessible for future reference (e.g., PDF reports), in compliance with ESMA guidelines.
  1. Scope of Services

3.1 Investment Advice

We provide personalized investment advice based on the information you provide in the suitability assessment. This advice is tailored to your risk tolerance, investment objectives, financial situation, and experience level.

3.2 Reception and Transmission of Orders (RTO)

In addition to investment advice, we offer RTO services, allowing us to receive and transmit your orders to Mega Equity Securities and Financial Services Public Limited for execution. This means that while we recommend investment opportunities, all trades and transactions will be executed by our principal firm.

  1. Suitability Assessment

4.1 Purpose of the Assessment

The suitability assessment is an essential step before we provide any investment advice. It helps us understand your risk profile, financial goals, and preferences. The information you provide must be accurate and complete to ensure we offer appropriate recommendations.

4.2 Client Responsibility

You are responsible for providing accurate, up-to-date information during the suitability assessment process. Any significant changes in your financial situation or investment objectives must be communicated to us immediately.

  1. The Investment Advice Process

5.1 Tailored Recommendations

Once the suitability assessment is completed, we will provide investment advice tailored to your needs. This advice will reflect your:

  • Risk tolerance
  • Financial goals
  • Investment experience
  • Time horizon

The advice will be based solely on the information you provide in the suitability assessment. If there are discrepancies or missing information, our recommendations may not fully reflect your needs, and we may require additional details.

5.2 Model Portfolio

As part of our investment advice, we may recommend a model portfolio, which includes an allocation of asset classes such as stocks, bonds, real estate, and alternative investments. The recommended portfolio will align with your risk profile and investment goals.

  1. Independent and Non-Independent Investment Advice

6.1 Independent Advice

When providing independent advice, we consider a broad range of financial instruments from different providers across the market. This approach ensures that our recommendations are not limited to specific financial products or tied to any particular issuer. Independent advice is based on an unbiased analysis of a wide range of options, allowing us to recommend the best solutions for your needs without being restricted by any particular set of products.

6.2 Non-Independent Advice

Non-independent advice applies when our recommendations are restricted to a more limited selection of financial instruments, such as when we propose a model portfolio. These model portfolios are curated and constrained in terms of the financial instruments available, such as stocks, bonds, or other assets. Since the range of options is limited, this type of advice is classified as non-independent. This limitation allows us to focus on specific strategies or products that align with your risk profile and investment goals, but it does not encompass the full range of available products on the market.

6.3 Disclosure of Advice Type

Before we provide you with any investment advice, we will inform you whether the advice is being provided on an independent or non-independent basis. This allows you to understand the scope of the advice and the range of products being considered in our recommendations.

  1. Reception and Transmission of Orders (RTO) Services

7.1 Transmission to Principal Firm

Upon receiving your investment instructions, we will transmit these orders to Mega Equity Securities and Financial Services Public Limited for execution. Mega Equity Securities and Financial Services Public Limited will be responsible for executing all trades and managing your investment account.

7.2 No Execution Responsibility

We do not execute orders directly. Our role is limited to receiving your instructions and passing them to Mega Equity Securities and Financial Services Public Limited, who will handle the execution in accordance with their own terms and conditions.

  1. Fees and Commissions

8.1 Commission Charged by Tied Agent

For using our investment advice and RTO services, you will be charged a 0.6% commission on the total value of each transaction. This fee is applied for the services provided by J. Knobel Investor Services Limited as a tied agent.

8.2 No Additional Commissions for Order Execution

There will be no additional commissions added to your orders when we transmit them to Mega Equity Securities and Financial Services Public Limited for execution. The 0.6% commission is the only fee for our services.

8.3 Full List of Fees

For a complete breakdown of fees, including any charges related to your brokerage account, you are encouraged to review Appendix D of the brokerage account forms. You can download the relevant document at the following link:
Download Brokerage Account Forms.

  1. Client Agreement and Consent

By using our services, you confirm that:

  • You have completed the suitability assessment truthfully and to the best of your knowledge.
  • You understand that the investment advice provided will be based on the information you have supplied.
  • You acknowledge that our advice is subject to the completion of your onboarding process with Mega Equity Securities and Financial Services Public Limited.
  • You agree that any significant changes in your financial situation must be promptly communicated to us.
  • You consent to us providing investment advice and RTO services based on the suitability assessment.
  1. Legal and Compliance Information

10.1 Tied Agent Authorization

J. Knobel Investor Services Limited operates as a tied agent of Mega Equity Securities and Financial Services Public Limited, which is regulated by the Cyprus Securities & Exchange Commission (CySEC), license no. 011/03 under the Markets in Financial Instruments Directive (MiFID II) and ESMA guidelines.

10.2 Regulatory Compliance

All services we provide comply with the regulatory framework established by the European Securities and Markets Authority (ESMA) and the Cyprus Securities and Exchange Commission (CySEC). We maintain the highest standards of conduct to ensure your investments are managed in accordance with the law.

10.3 Data Protection

We take the privacy of your personal information seriously. Your data will be handled in accordance with applicable data protection laws, including GDPR. The suitability assessment data will only be used for the purpose of providing tailored investment advice and will be stored securely in a durable medium.

  1. Risks

11.1 Investment Risk

All investments involve risks, including the potential loss of capital. Our recommendations are based on your suitability assessment and risk tolerance, but we cannot guarantee returns or protect against market volatility. You should only invest if you understand and are comfortable with these risks.

11.2 No Guaranteed Returns

While we provide investment advice based on your profile, investment outcomes can vary. Past performance is not indicative of future results. Markets fluctuate, and returns on investments can never be guaranteed.

  1. Amendments and Updates

We reserve the right to amend these Terms and Conditions at any time. Any changes will be communicated to you, and your continued use of our services will indicate acceptance of the updated terms. We recommend checking this document regularly for updates.

  1. Termination of Services

You may terminate your relationship with us at any time by providing written notice. We may also terminate the provision of services if there is a breach of these terms or if we can no longer offer suitable advice based on your profile.

  1. Governing Law and Jurisdiction

These Terms and Conditions are governed by the laws of [Country/Cyprus]. Any disputes arising from these terms will be subject to the exclusive jurisdiction of the courts of [Country/Cyprus].

  1. Contact Us

If you have any questions or require further clarification, please contact us at:

J. Knobel Investor Services Limited

55 Vyzantiou Street, Nicosia 2064 Cyprus
info@jknobel.com
Tel: +357 22 258 790

Next Steps: Custom Agreement for Signature

Once you complete the suitability assessment and are onboarded with Mega Equity Securities and Financial Services Public Limited, you will receive a personalized version of these Terms and Conditions, including your specific details and suitability report. You will be asked to sign and return the agreement as part of your onboarding process.

By using our investment services, you acknowledge that you have read, understood, and agreed to these Terms. If you do not agree to these Terms, you should not use our services. These Terms may be updated from time to time, and the most current version will be available on our website.