Regulations

Supervision

Intercapital Markets AD is authorized and regulated by the Bulgarian Financial Supervision Commission under License Number RG-03-0204/24.02.2006. This license gives us authorization to receive instructions and execute trades with all types of financial instruments and on all available stock exchanges, as well as execute trades on discretionary basis for clients under Asset Management Agreement.

Polish Branch

The Polish branch of Intercapital Markets AD also falls under Bulgarian Financial Supervision Commission regulation and is as well being supervised by the Polish Financial Supervision Authority.

Protection of Client's funds

Intercapital Markets AD holds all clients assets in segregated accounts. The purpose of this policy, called Client Money Rules, is to protect ICM customers' money. It ensures a clear separation between money that belong to Intercapital Markets AD and money that belongs to our customers, which are protected from 3rd party claims towards ICM AD.

In addition, all clients funds are protected by the Bulgarian Investor Compensation Fund. The Fund provides compensation in case when an investment intermediary is not able to pay out its liabilities to its clients due to reasons directly related to its financial state. The Fund pays out compensation to every client of an investment intermediaries up to 90% of the amount of the receivable, but not more than 40 000 BGN (up to 20 460 EUR).

MIFID II Directive

In order to meet the requirements imposed by the MIFID II Directive, we would like to inform that from January 3rd, 2018, regulations regarding the provision of brokerage and investment services enter into the Polish legal order.

The two main assumptions underlying the MiFID II Directive are ensuring investor protection and increasing the transparency of investment firms. Entities offering products and financial services should focus more on their adjustment to the investment profile of the client. Filling the customer information form allows to determine the propensity to risk and to protect the client against an inappropriate financial product.

Main changes resulting from the entry into force of the provisions of MIFID II:
- increasing the information obligation of entities conducting brokerage activities,
- expanding the adequacy of adaptation of the service with questions regarding customer's tolerance to risk, financial situation and indication of the preferred horizon and investment objective,
- preparation of reports related to transactions concluded and periodic reports,
- informing the client about the anticipated costs of services and financial instruments before concluding the contract, submitting periodic reports on the costs incurred in a given year during the term of the contract.
- the need to obtain and maintain the validity of the LEI code by an investor with legal personality, being an organizational unit without legal personality or a natural person running a business, if the investor intends to use brokerage services on organized markets.