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- EVER financial AD -

Protection Of The Financial Instruments & Funds Of The Clients

I. Introduction

  1. This Information on the Protection of Financial Instruments and Funds of the Clients of Ever Financial AD. Trading in Contracts for Differences on an Over-the-Counter Market (hereinafter referred to as the “Information”) has been developed on the basis and in accordance with the provisions of Articles 49 and 63 of Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65 / EU of the European Parliament and of the Council as regards organizational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (Delegated Regulation 2017/565), Articles 92 – 95 of the Markets in Financial Instruments Act (MFIA) and Articles 3 – 10 of Ordinance No. 58 of 28 February 2018 on the requirements for the protection of clients’ financial instruments and funds, for product management and for the provision or receipt of fees, commissions, other monetary or non-monetary benefits (Ordinance No. 58), and in accordance with the requirements of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2314 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61 /EU (MiFID II) and in particular with Article 16, Paragraphs 8 – 11.
  2. The information has been prepared in accordance with the nature, scale and complexity of the business activities carried out by Ever Financial AD.
  3. The information is applicable to the contracts between Ever Financial AD and its clients that regulate trading in contracts for differences (CFDs) on an over-the-counter market (OTC market).
  4. Ever Financial AD does not offer its clients trading in financial instruments other than CFDs on a market other than the OTC market.
  5. Ever Financial AD offers its clients the following types of CFDs:

a) CFDs on securities and exchange-traded funds;

b) CFDs on indices;

c) CFDs on futures;

d) CFDs on currency pairs and precious metals;

e) CFDs on exchange-traded options.

6. The main features of CFDs offered by Ever Financial AD are:

a) the creator and distributor of CFDs that are offered for trading by Ever Financial AD is the investment intermediary itself;

b) An CFD offered for trading by Ever Financial AD is not a transferable security and is not held in a depositary institution but in an analytical account with the investment intermediary;

c) neither party physically acquires the CFD itself, nor the underlying asset on which it is based;

d) neither party is obliged to purchase, sell, deliver or physically receive the respective underlying asset of the CFD;

e) the rights and obligations of each of the parties to the CFD are solely to make or receive payments in accordance with the order submitted, as the results of the execution of the orders are reflected accordingly in its positions in assets and/or funds;

f) CFD transactions are not subject to centralized clearing.

II. Protection of Clients’ Financial Instruments and Funds.

  1. Ever Financial AD, as an investment intermediary, which holds financial instruments and funds of clients, takes measures to protect its clients’ rights of ownership of those assets.
  2. Ever Financial AD has separated its financial instruments and funds from those of its clients.
  3. Ever Financial AD keep records and accounts of its clients’ financial instruments and funds, which:

a) enable it any time to distinguish assets held for one client from assets held for any other client, and from its own assets;

b) accurately reflect the financial instruments and funds held for clients;

c) can be used for documentary traceability (audit trail).

10. The Investment Intermediary (II) maintains analytical accounts of all financial instruments and funds of its clients. Ever Financial AD takes the necessary measures to ensure that all clients’ financial instruments can be clearly distinguished at any time from the investment intermediary’s financial instruments, through accounts held with different names in the investment intermediary’s accounting records or through equivalent measures that achieve the same level of protection.

11. Ever Financial AD does not and cannot use the financial instruments (CFDs) of its clients for its own account, for the account of its other clients or for the account of any other person.

12. Ever Financial AD does not and may not use clients’ funds on its own account except with the express consent of the client.

13. When Ever Financial AD is able to set-off, establish collateral, and other actions (including the exercise of lien) with respect to the client’s financial instruments and/or funds, the investment intermediary shall indicate in the contract and/or the General Terms and Conditions applicable thereto all relevant information relating to the rights or actions relating to clients’ assets.

14. Ever Financial AD shall not be liable to its creditors with the financial instruments and funds of its clients. Enforcement on the funds and financial instruments of clients for the purposes of covering obligations of Ever Financial AD shall not be allowed.

15. The set-off, establishment of collateral and other actions in relation to a client’s financial instruments and/or funds is invalid towards the client, as a result of which a third party acquires the right to dispose of the client’s financial instruments and/or funds for the purpose of recovering a debts that is not related to the client’s obligation or to the services provided by the client’s investment intermediary. This does not apply in cases where such actions result from the applicable law in a third country where the client’s financial instruments and/or funds are held.

16. The II shall set out in the contract and/or in the general terms and conditions applicable thereto and/or this information whether it holds the client’s funds in a third country, in accordance with the applicable legislation of which actions related to set-off, establishment of collateral and other actions with respect to a client’s financial instruments and/or funds are permitted, which will result in a third party acquiring the right to dispose of the client’s funds in order to recover a debt that is not related to the client’s obligation or the services provided by the investment intermediary to the client.

17. Ever Financial AD does not hold the financial instruments (CFDs) of the client in a third country, neither in a person other than itself nor in a country other than Bulgaria.

18. The financial instruments of a client or prospective client cannot be held on an omnibus account by Ever Financial AD or a third party. If Ever Financial AD will hold the client’s funds in such a third country, it shall specify in the contract with the client all relevant information regarding the rights or actions concerning clients’ assets.

19. When Ever Financial AD is informed of the existence of actions for offsetting, establishing collateral and other actions in respect of the client’s funds, as a result of which a third party acquires the right to dispose of the client’s financial instruments and/or funds to recover a debt that is not related to the client’s obligation or to the services provided by the client’s investment intermediary, where such actions stem from the applicable law in a third country where the client’s funds are held, the investment intermediary informs the client thereof through the durable medium stated by it or through its website, and provide the client with all relevant information regarding the rights or actions relating to clients’ assets.

20. Ever Financial AD immediately records in the contract with the client and its own accounts the collateral established or the set-off made or other actions in respect of the client’s funds in the accounts in order to ensure the clarity of the client’s funds status, including in the case of insolvency proceedings.

21. Ever Financial AD informs the client or potential client through the durable medium stated by them or through its website about the cases when that client’s funds can be held by a third party on behalf of the investment intermediary, and about the responsibility of the investment intermediary under the applicable national laws regarding any acts or omissions of the third party, as well as the consequences for the client of the eventual insolvency of the third party.

22. Ever Financial AD informs the client or potential client through the durable medium stated by them or through its website, when the accounts in which that client’s funds are held, are subject to or will be subject to the laws of a jurisdiction other than a EU Member State, and it points out that the rights of the client or potential client related to those funds may be different accordingly.

23. Ever Financial AD will not conclude contracts for securities financing transactions within the meaning of Article 3(11) of Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 with respect to the financial instruments held by it on behalf of a client, or otherwise use those financial instruments for its own account or for the account of another person or a client of the investment intermediary.

24. Ever Financial AD will not enter into title transfer financial collateral agreements with the client (retail and professional clients and eligible counterparties) in order to secure current, future, actual, contingent or prospective obligations of the client.

25. Ever Financial AD establishes the necessary organization to minimize the risk of losing or reducing the client’s financial instruments and funds or restricting or losing their rights in relation to those assets as a result of misuse, abuse, fraud, poor administration, inadequate record keeping or negligence in respect of the assets.

26. Ever Financial AD appoints an employee who is responsible for meeting the obligations of the investment intermediary related to the protection of clients’ financial instruments and funds.

III. Depositing Clients’ Financial Instruments and Funds.

  1. The financial instruments offered for trading by Ever Financial AD are CFDs, which by their nature are non-transferable securities and are not held in a depository institution but in an analytical account with the investment intermediary. In view of this, Ever Financial AD does not deposit clients’ financial instruments with a depository institution under Article 94, Paragraph 1 of the MFIA, and hold them in the analytical accounts of its clients kept by it.
  2. Ever Financial AD does not keep the funds of its clients.
  3. The II deposits the clients’ funds into an account or accounts separately from all accounts used to hold the investment intermediary’s funds in a person specified below.
  4. Ever Financial AD may deposit its clients’ funds into:

-> a central bank;

-> a credit institution licensed under the Credit Institutions Act, respectively in accordance with the requirements of Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC;

-> a credit institution licensed in a third country;

-> a qualifying money market fund.

  1. Ever Financial AD does not deposit its clients’ funds in a qualifying money market fund.
  2. Ever Financial AD does not deposit clients’ funds with a credit institution or qualifying money market fund, which are in the same group as the investment intermediary.
  3. Ever Financial AD deposits its clients’ funds with the following commercial banks (credit institutions): Unicredit Bulbank.
  4. Ever Financial AD takes due care in the selection / periodic review and evaluation of a credit institution in which it deposits its clients’ funds, and when determining contract provisions with it, it takes into account the experience and market reputation of the credit institution with a view to ensuring the protection of clients’ rights, as well as any legal and regulatory requirements or market practices relating to the holding of clients’ funds that could adversely affect clients’ rights.
  5. In relation to the acts or omissions of the persons to whom the funds have been deposited, and the consequences for the clients of the insolvency of those persons, the liability of these persons and of Ever Financial AD are determined in accordance with national laws.
  6. Ever Financial AD reconciles the accounts and records it maintains with those of commercial banks, where the assets of the investment intermediary and its clients are held, and that reconciliation is on a daily basis.

IV. Statements of Client’s Financial Instruments or Funds

  1. Ever Financial AD sends, once a quarter, to each client trading on a regulated market for which it holds financial instruments or funds, a statement on a durable medium for those financial instruments or funds, unless such statement is provided in another periodic statement.
  2. Ever Financial AD provides, at the request of the client, such a statement more often for a fee determined on a commercial basis.
  3. The clients of Ever Financial AD, who trade through the electronic platform to which the II provides access, have permanent access in real time to the information about the client’s financial instruments and funds held by the II. The information is available in the client profile on the platform.
  4. The statement of client’s asset contains the following information:

a) details of any financial instruments or funds held by the investment intermediary for the client at the end of the period covered by the statement;

b) the extent to which any financial instrument or funds of the client have been the subject of securities financing transactions;

c) the extent of any benefit that has accrued to the client by virtue of participation in any securities financing transactions, and the basis on which that benefit has accrued;

d) an explicit indication of assets or funds that are subject to the MiFID II rules and its implementing measures and those that are not, such as those that are the subject of a title transfer collateral agreement;

e) an explicit indication of assets that are affected by certain peculiarities with respect to ownership rights, for example which are subject to a security interest;

f) the market value or the estimated value, if not available, of the financial instruments included in the statement explicitly stating that the absence of a market price may be indicative of a lack of liquidity, and the estimated value is determined on a best effort basis.

41. In cases where the client’s portfolio contains proceeds from one or more unsettled transactions, the information referred to in subitem (a) may be based either on the date of the transaction or on the settlement date, provided that the same basis is used consistently to all such information in the statement.

42. The periodic statement of the clients’ assets is not provided when Ever Financial AD provides its clients with access to an online system meeting the criteria for a durable medium, if the latest statements of the client’s financial instruments or funds of is readily accessible by the client and the investment intermediary has evidence that the client has carried out access to that statement at least once in the relevant quarter.

V. Conclusion

  1. (amended with decision by the BD from 09.10.2020, 18.02.2022 and from 15.02.2024) The latest version of this Information is available to clients in the offices of Ever Financial AD, as well as on its website (www.ever.bg, www.24yield.com). Ever Financial AD informs its clients through its website about any significant changes in the Information or about the adoption of a new one.
  2. This document was approved by the Board of Directors of Ever Financial AD at a meeting held on 5 June 2018 and is effective from the same date. This document is amended with a decision of the Board of directors from 09.10.2020, 18.02.2022, 24.08.2022 and from 15.02.2024.
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