The Cyprus Securities and Exchange Commission (the “CySEC”) has issued Circular C168 which introduces specific changes to aspects in relation to the provision of CFDs and other speculative products, such as rolling spot forex, to retail investors under MiFID (Law 144(I)/2007), which is in line with the updated version of the Q&A published by the European Securities Markets Authority (ESMA/2016/1454) on October 11, 2016.
The CySEC has mandated the industry to default the leverage choice to retail clients to 1:50 provided that they pass the Appropriateness test (“the Test”) as defined in Chapter C of Part V of the Law 144(I)/2007. Clients that do not pass the Test will be subject to lower leverage default rates (i.e. 1:20). However, this new requirement for CIFs is not a cap on leverage. Clients that explicitly ask for higher leverage and fully understand and accept the risks envisaged from their decision will be able to trade with higher leverage and lower margin requirements.
In line with the aforementioned Circular, all Cyprus Investment Firms will have to implement the necessary changes until 30th of January 2017. For the purposes of this requirement, we are obliged to perform the Test for all of our clients and define the leverage level that is appropriate or/and acceptable by them.
For pre-existing clients, in order to be able to assess whether the investment service or product envisaged is appropriate for them, Alfa-Forex needs to collect additional information regarding clients’ knowledge and experience in the investment field relevant to the specific type of product or service offered. For this purpose, please contact our Customer Support team to provide you with the new client questionnaire. Should you wish not to provide the relevant information regarding your knowledge and experience, Alfa-Forex will consider that it has no adequate information to assess and perform the appropriateness test. As a result you consent to maintain the existing level of leverage and fully understand and accept the risks arising from this decision.
If you want to continue to trade with higher leverage please fulfill a ticket in your Personal area with the subject "Appropriateness Test" and text:
I have read and fully understand all information provided in this news feed https://alfaforex.com/en/about/news/maksimalnoe-kreditnoe-plecho-i-test-na-sootvetstvie. I do not wish to provide any additional information regarding my knowledge and experience, and I give my written consent to maintain the existing level of leverage provided to me. With this decision, I acknowledge and accept all risks involved.
For more details contact your personal manager by dialing 7 495 785-96-69 (ext. 1).