Following the implementation of the Second Markets in Financial Instruments Directive (MiFID II) and in accordance with the provisions of the Financial Services and Activities and Regulated Markets Law L. 87(Ι)/2017 (hereinafter collectively referred to as the “Law”), IQOption Europe Ltd (the “Company”) is required to establish and provide its clients and potential clients a Conflicts of Interest Policy (the “Policy”) and take all reasonable steps to implement effective procedures for the identification, prevention and management of conflicts of interest.
In this Policy, except where the context otherwise requires, the following terms shall have the following meaning:
Company shall mean IQOption Europe Ltd, a Cyprus Investment Firm with registration number HE327751 formed under the Laws of Cyprus and regulated by the ‘Cyprus Securities and Exchange Commission (CySEC)’ with license number 247/14 and with its registered office at Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus.
Client(s) shall include all existing and potential Clients of the Company, regardless of their categorisation.
Conflict of Interest entails a situation in which the concerns or aims of two parties are incompatible i.e. in conflict with each other. For the purpose of this Policy, and in general terms, Conflict of Interest will be considered to exist in situations where the Company may make financial gain when providing investment services and/or ancillary services (or a combination thereof) which is in turn detrimental to one or more Clients.
Inducements shall mean incentives (i.e a fee, commission or non-monetary benefit) that persuade or lead someone to act in a particular way and/or make particular decisions.
Relevant Persons shall include directors, partners, managers or appointed representatives, employees, business introducers (affiliates), legal or natural persons involved in the provision of services to the Company, in particular those who provide services under an outsourcing agreement, and any other related parties.
The Policy sets out the Company’s procedures and clearly identifies circumstances which may give rise to conflicts of interest, where the Company cannot ensure, with reasonable confidence, that risk of damage to client interests will be prevented.
The Policy identifies the possible types of conflict of interest that arise in the course of the Company providing investment and ancillary services (or a combination thereof) and whose existence may damage the interests of a client, as well as the procedure for such identification and the measures taken by the Company to prevent, manage or limit such conflicts.
The Policy is set out in writing and appropriate to the size and organisation of the Company, and the nature, scale and complexity of its business.
The Policy applies to the Company and its directors, managers, employees, affiliates and any other persons directly or indirectly linked by control to the Company (“relevant persons”), whether as a result of providing investment or ancillary services or investment activities or otherwise. By way of minimum criteria, the Company takes into account the following situations:
In addition, the Company takes into account the situations and Conflicts of Interest arising as a result of the structure and business activities of other members of the group and/or related parties.
The Policy identifies the procedures and measures taken by the Company which are designed to ensure that relevant persons engaged in different business activities involving a conflict of interest (as specified above) carry on those activities at a level of independence appropriate to the size and activities of the Company, and to the materiality of the risk of damage to the interests of clients.
The Policy’s procedures are aimed at:
If the adoption or practice of any of the above measures/procedures does not ensure that requisite degree of independence, the Company adopts such alternative or additional measures/procedures as are necessary and appropriate for those purposes.
Taking into consideration the services the Company offers; potential sources of Conflicts of Interest may arise as a result of:
The Investment services and/or ancillary services (or a combination thereof) provided by the Company to, for, with, and/or on behalf of its Clients:
Inducements, commissions, remuneration, gifts etc.
It should be noted that the above scenarios do not necessarily give rise to a ‘Conflict of Interest’ or to any material damage to the Client, but are disclosed in the interest of full transparency. The above scenarios should be considered in relation to the procedures and measures implemented by the Company in order to manage or limit their impact.
The Company maintains and operates effective organisational and administrative procedures in order to manage and prevent any conflict of interest that may arise and may constitutes or gives rise to a risk of damage of our clients’ interests.
This section of the Policy will outline the measures taken by the Company in general, as well as in respect of the above list of identified possible Conflicts of Interest (where applicable):
Measures in relation to the Investment services and/or ancillary services of the Company:
The Company’s internal systems automatically execute Client orders/transactions in the order they are received.
**The prices quoted for our Financial Instruments are derived from the prices obtained from the regulated exchanges these Instruments are traded on, or based on prices received from reputable price feed providers and regulated liquidity providers.
Measures in relation to Inducements, commissions, remuneration, gifts etc.
Affiliate Remuneration: The Company remunerates its affiliates (business introducers) on the basis of client transactions (% commission), as such the remuneration may give rise to conflicts of interest that may negatively affect the Client and incentivise affiliates towards aggressive marketing tactics or the provision of misleading information to increase their own commission.
In particular, the commission of the Affiliate is paid in the following way:
For the purposes of paragraphs B and C of the section ‘’Measures in relation to Inducements, commissions, remuneration, gifts etc.’’, the following terms shall have the below meaning:
Active Trader means an Affiliate Client (as defined below) who has made at least one deposit and conducted at least one trade following such deposit via her/his IQOption Account;
Affiliate Client means a user that:
Referred Client means a client that has been referred by Affiliate in accordance with Tracking (as defined below) and such client has been referred for the first time, is not the Affiliate’s relative, spouse and/or a connected person to the Affiliate in any way;
Tracking means the tracking through IQOption’s website and/or any other online tracking tool that may be used from time to time by IQOption, in order to track which users and/or clients are referred for the registration of an IQOption Account through the Affiliate’s links and/or Affiliate Account;
When referring to the definition of Affiliate Client, Active Trader (as defined above) shall also be included;
Connected Person means any person associated (either directly and/or indirectly) with the Affiliate, including any member of the Affiliate’s family, any legal person (of any form or manner) whether incorporated or not, whether directly or indirectly controlled, controlling or under common control with the Affiliate;
IQOption Account means the Company’s trading account.
General criterias for the calculation of the Affiliate’s payment
Having regard to the Affiliates’ payment calculation, the Company’s system always takes into consideration the following three criteria:
In regards to all the products described in the paragraph “Remuneration” below, the following conditions are applied:
once every twenty four (24) hours: the Company’s revenues generated in relation to Affiliate Client are calculated; If criteria 1 and 2 (listed above) are met, and additionally the Company’s revenues generated in relation to Affiliate Clients’ activity exceed the already credited 2.5% value of the transaction/deal size, up to 70% of the amount (percentage depends on multiple factors, see below) of Company’s revenues derived from Affiliate Clients’ activity is credited to the balance of the Affiliate for each such Affiliate Client.
For any further clarification as to what constitutes ‘’revenue’’ for the purposes of this Agreement, reference can be made in section ‘’3. Identification of Potential Sources of Conflicts of Interest’’ subsection 3.1.3. of the present Conflicts of Interest Policy.
Based on the aforementioned information, the Affiliates’ remuneration is calculated on the basis of the below and is divided between the Affiliates registered before September 3, 2018 and Affiliates registered on or following the September 3, 2018 as presented below:
For Affiliates registered before September 3, 2018:
The commission shall be calculated on the below basis:
Notwithstanding the above, it is hereby understood that any such commission shall not exceed 50% of the total amount of net deposits of all of the Affiliate Clients at the relevant time.
For Affiliates registered on or following the September 3, 2018:
The commission shall be calculated on the below basis depending on the period passed since an Active Trader registered an IQOption Account of an Affiliate client so that the total revenue share (as set-out by instrument in the paragraph ‘General criterias for the calculation of the Affiliate’s payment’ and in relation to those products listed in that paragraph) percentage equals to:
Inactive Affiliates’ (as defined below) remuneration:
Upon the date an Affiliate is determined as an Inactive Affiliate by IQOption (the “Conversion”), the commission shall be calculated on the below basis:
Standard and Advanced Rate Remuneration
As it was stated above the Affiliates’ commission by default shall not exceed affiliate cap of 50% of net deposits (as defined in paragraph “General criterias for the calculation of the Affiliate’s payment” point 3). However, Affiliates who bring more than thirty (30) FTDs (i.e. 31 or more) over the past thirty (30) days get switched to advanced rate, which waives this limitation, meaning only Company’s revenues from an individual Affiliate Client’s activity is taken into consideration.
In order to mitigate this risk, the Company ensures the following:
The Company does not offer, solicit or accept any inducements other than those outlined as fees or commissions;
The Company does not allow its employees to accept any gifts or monetary benefits of any kind which may cause Conflict of Interest. Gifts of low value may be accepted, as long as the Company is informed and approves such gifts (this does not apply to monetary gifts like cash).
Measures in relation to the Company’s Group Structure/Outsourced Service Providers/Related parties:
Where the Company is aware of a conflict that may arise, and where the organisational and administrative arrangements established by the Company to prevent or manage this conflict are not sufficient to ensure, with reasonable confidence, that the risks of damage to the interests of the client will be prevented, then the Company will disclose such risk to its clients.
Where disclosure of such conflict is not sufficient to manage the conflict, the Company may choose in its absolute discretion not to proceed with the transaction or matter giving rise to the conflict.
The Company reserves the rights to review this Policy whenever it deems appropriate. More information regarding this Policy can be provided upon request to firstname.lastname@example.org
By accepting the Company’s Terms & Conditions, the Client accepts this Policy and the information contained within.