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FINANCIAL RESPONSIBILITY OF iOption Ltd.
iOption Ltd. complies with all international regulations and requirements of a broker-dealer.
iOption adheres to strict regulatory standards and takes steps to safeguard clients’ funds and financial instruments. This means that your money is in safe hands and thus ensures that you can focus all your attention on your trading.We are committed to ensure our clients have the tools they need to successfully execute online trading. Advanced trading tools, professional customer / technical support and a secure trading environment are but a few of the tools we put at your disposal.
Broker-dealers must meet certain financial responsibility requirements, including:
1
Maintaining minimum amounts of liquid assets, or net capital.
2
Taking certain steps to safeguard the customer funds and securities.
3
Making and preserving accurate books and records.
Net Capital Rule
The purpose of this rule is to require a broker-dealer to have at all times enough liquid assets to promptly satisfy the claims of customers if the broker-dealer goes out of business. Under this rule, broker-dealers must maintain minimum net capital levels based upon the type of securities activities they conduct and based on certain financial ratios.
Customer Protection Rule
This rule protects customer funds and securities held by broker-dealers. Under the rule, a broker-dealer must have possession or control of all fully-paid or excess margin securities held for the account of customers, and determines daily that it is in compliance with this requirement. The broker-dealer must also make periodic computations to determine how much money it is holding that is either customer money or obtained from the use of customer securities. If this amount exceeds the amount that it is owed by customers or by other broker-dealers relating to customer transactions, the broker-dealer must deposit the excess into a special reserve bank account for the exclusive benefit of customers. This rule thus prevents a broker-dealer from using customer funds to finance its business.
Required Books, Records, and Reports
Broker-dealers must make and keep current books and records detailing, among other things, securities transactions, money balances, and securities positions. The annual statements generally must be certified by an independent public accountant.
OTHER REQUIREMENTS
In addition to the provisions discussed above, broker-dealers must comply with other requirements. These include:
1
Clients Categorisation.
2
Client's Complaints.
3
Conflicts of Interest.
4 Safeguarding of clients’ personal and financial information.
5
Risk Disclosure.
6
Executing clients’ orders.
7
Maintaining clients documents (Know Your Client - KYC).
The current EU legislation, the so-called Third Anti-Money Laundering Directive (hereinafter, the 3rd AMLD), has been in force since 2005. It provides a European framework built around the international Financial Action Task Force (FATF) standards (see IP/04/832).
The Directive applies to banks and the whole of the financial sector as well as to lawyers, notaries, accountants, real estate agents, casinos and company service providers. It's scope also encompasses all dealers in goods (such as dealers in precious metals and stones), when payments are made in cash in excess of €15,000.
Those subject to the Directive need to:
Identify and verify the identity of their customers and of the beneficial owners of their customers (for example, by ascertaining the identity of the natural person who ultimately owns or controls a company), and to monitor the transactions of and the business relationship with the customers;
Report suspicions of money laundering or terrorist financing to the public authorities - usually, the financial intelligence unit.
Take supporting measures, such as ensuring the proper training of personnel and the establishment of appropriate internal preventive policies and procedures.
The Directive introduces additional requirements and safeguards (such as the requirement to conduct enhanced customer due diligence) for situations of higher risk (e.g. trading with correspondent banks situated outside the EU).
Internet and Website Security
iOption uses SSL (Secure Sockets Layer) technology to ensure that all payments made across the iOption platform are as secure as possible. This automatic system is used by banks and major financial companies, and you will receive an instant notification if, for some reason, your browser is unable to support it.
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