Regulation and Compliance

Regulation and Compliance

At J. Knobel Investor Services Limited, we are committed to upholding the highest regulatory standards to protect our clients and ensure transparency in all our services. As a tied agent of Mega Equity Securities and Financial Services Public Limited, a fully regulated investment firm, we strictly follow guidelines set by the European Securities and Markets Authority (ESMA) and the Cyprus Securities and Exchange Commission (CySEC).

  1. Who We Are

J. Knobel Investor Services Limited operates as a tied agent of Mega Equity Securities and Financial Services Public Limited, an investment firm licensed and regulated by the Cyprus Securities & Exchange Commission (CySEC) license no. 011/03 under the Markets in Financial Instruments Directive (MiFID II). This relationship allows us to provide a range of investment services, including:

  • Investment Advice
  • Reception and Transmission of Orders (RTO)

We specialize in offering personalized financial advice tailored to your needs, while Mega Equity Securities and Financial Services Public Limited oversees the execution of orders, client account management, and custody of client assets.

  1. Our Role as a Tied Agent

As a tied agent, we introduce clients to Mega Equity Securities and Financial Services Public Limited and provide investment advice based on the information collected through our suitability assessment. While we are responsible for offering tailored advice, Mega Equity Securities and Financial Services Public Limited is responsible for the following:

  • Completing the KYC (Know Your Customer) and account onboarding process
  • Approving client accounts
  • Executing investment orders and managing the trading process
  • Holding and managing client funds and assets

By choosing to work with us, you benefit from the expertise and personalized service of a dedicated advisor combined with the security of a fully regulated and licensed financial firm.

  1. Regulatory Framework

We operate within the strict regulatory framework set forth by the Markets in Financial Instruments Directive II (MiFID II) and European Securities and Markets Authority (ESMA). MiFID II is the cornerstone of European regulation for financial markets, designed to increase transparency and protect investors.

Some of the key regulatory features we adhere to include:

  • Client Protection: Ensuring that the investment advice provided is suitable for each client based on their financial situation, risk tolerance, and investment objectives.
  • Best Execution: All orders transmitted for execution will be managed in the best interest of the client, ensuring competitive pricing and execution conditions.
  • Data Protection: Compliance with the General Data Protection Regulation (GDPR) ensures that your personal information is secure, confidential, and only used for the purposes outlined in our agreements.
  • Suitability Assessments: As per MiFID II regulations, we perform a thorough suitability assessment to ensure that any investment recommendations are aligned with your personal financial goals and risk profile.
  1. Independent and Non-Independent Advice

In compliance with regulatory requirements, we offer both independent and non-independent investment advice, depending on the scope of financial products we recommend. When recommending model portfolios, our advice is considered non-independent, as we limit the selection of financial instruments to a predefined range. However, when we provide recommendations considering a broader market view, the advice is independent, as it draws on a wider range of investment products.

We will always inform you whether the advice you are receiving is independent or non-independent, ensuring full transparency.

  1. Your Client Protections

As a client of J. Knobel Investor Services Limited, you are protected under the following regulatory safeguards:

5.1 Investor Compensation Fund (ICF)

Clients of Mega Equity Securities and Financial Services Public Limited are eligible for protection under the Investor Compensation Fund (ICF), which compensates clients in the event of the firm’s failure to meet its financial obligations. This fund provides coverage up to a certain amount, as outlined by CySEC regulations.

5.2 Risk Disclosure

Investments in financial instruments always involve risks, including the potential loss of capital. While we strive to provide advice suited to your financial situation, it is essential to understand that no investment is without risk. The suitability assessment ensures that the level of risk in your portfolio aligns with your risk tolerance and investment objectives.

  1. Fees and Commissions

As part of our transparent approach, we charge a commission of 0.6% on each transaction when using our investment advice and RTO services. No additional commissions will be added when your orders are transmitted to Mega Equity Securities and Financial Services Public Limited for execution. A full list of brokerage-related fees can be found in Appendix D of the account opening form, which can be downloaded here.

  1. Reporting and Durable Medium

We provide all important client documents, including the Suitability Report, in a durable medium (e.g., PDF), ensuring that you can access these documents at any time for reference. This is in line with ESMA guidelines to maintain transparency and accessibility for clients.

  1. Conflict of Interest Policy
  2. Knobel Investor Services Limited has implemented a Conflict-of-Interest Policy to ensure that any potential conflicts between our services and your interests are identified and managed appropriately. We are committed to maintaining objectivity in our advice and ensuring that our clients’ interests are prioritized in every decision.
  3. Complaint Handling Procedure

We aim to provide a seamless and professional service to all clients. However, if you are not satisfied with any aspect of our service, we have a formal complaints procedure in place. Please refer to our Complaint Handling Policy or contact us at complaints@jknobel.com for assistance.

  1. Contact Information

For more details regarding our regulatory status, or to request more information about our services, you can contact us at:

J. Knobel Investor Services Limited
55 Vyzantiou Street, Nicosia 2064 Cyprus
info@jknobel.com
Tel: +357 22 258 790

Alternatively, you can also visit the website of our principal, Mega Equity Securities and Financial Services Public Limited, to review their full regulatory status and licenses: https://megaequity.com/.

  1. Regulatory Disclosures
  • CySEC License: Mega Equity Securities and Financial Services Public Limited operates under the CySEC license number 011/03, and you can view their full regulatory details on the CySEC website.
  • MiFID II Compliance: All services provided comply with the rules and standards established under the Markets in Financial Instruments Directive II (MiFID II).
  • ESMA Guidelines: Our firm operates in strict adherence to the European Securities and Markets Authority (ESMA) guidelines, ensuring that all advice and services meet the regulatory requirements across Europe.
  1. Legal Disclaimer

This page is for informational purposes only and does not constitute investment advice or a solicitation to engage in investment activities. All investment decisions should be made based on the suitability assessment, and it is important that clients are aware of the risks involved in financial investments.