Structure of the document.
The sections and their scope are listed below — the full wording is to be drafted by the company's legal counsel.
Clauses of the agreement
Definitions and interpretation
Terms used in the agreement.
Subject matter of the agreement
JB Management provides the client with access to trading in contracts for difference on the terms set out in the agreement. The company acts on an execution-only basis and does not provide portfolio management or investment advice.
Conclusion of the agreement
The agreement is deemed concluded once the client has accepted the terms during registration and has successfully completed the identification procedure. JB Management may decline to enter into the agreement without giving reasons.
Client categorisation
How clients are classified as retail or professional, the differences in the level of protection, the procedure for changing category and the consequences of such a change.
Appropriateness assessment
The company assesses whether the products offered are appropriate to the client's knowledge and experience. If the result is negative, the client receives a warning.
Trading account
Account opening procedure, account types, account currency, prohibition on use of the account by third parties, the client's responsibility for safeguarding login credentials.
Dealing
How orders are placed and executed, grounds for rejecting an order, minimum and maximum volumes, pending orders, quoting procedure, actions taken in the event of a manifest pricing error.
Margin requirements
How required margin is calculated, the client's obligation to maintain a sufficient margin level, the margin close-out mechanism at fifty per cent, negative balance protection for retail clients.
Fees and charges
Spread, volume commission, swaps, inactivity fee, currency conversion costs. Procedure for changing tariffs and the notice period given to the client.
Deposits and withdrawals
Accepted methods, the return-to-source rule, prohibition on third-party payments, processing times, the company's right to request additional documents.
Safeguarding of client funds
Segregation, placement with credit institutions, participation in the investor compensation fund.
Corporate actions
Adjustments to share CFDs: dividends, stock splits, mergers.
Client representations and warranties
The client confirms that they act on their own behalf, that the funds lawfully belong to them, that they are not resident in a restricted jurisdiction and that they are at least eighteen years of age.
Prohibited practices
Exploitation of software or technical faults, latency arbitrage, trading on manifestly erroneous prices, coordinated activity across several accounts, abuse of rights. Consequences of such practices being detected.
Limitation of liability
The company is not liable for losses caused by circumstances beyond its reasonable control: connectivity failures on the client's side, actions of third parties, force majeure, suspension of trading in the underlying market.
Conflicts of interest
Reference to the relevant policy.
Notices and communications
How notices are served, recognition of electronic correspondence as a proper channel, the client's obligation to keep contact details up to date.
Amendments to the terms
The company may amend the terms on not less than [N] days' notice. Continued use of the services after the amendments take effect constitutes acceptance of them.
Suspension and closure of the account
Grounds for suspending operations: suspected breach, a regulatory instruction, incomplete verification. Procedure for closing the account at the client's initiative and at the company's initiative. Procedure for returning the remaining balance.
Dormant and unclaimed accounts
When an account is deemed dormant, the inactivity fee, steps taken when the client cannot be contacted.
Governing law and dispute resolution
The agreement is governed by the law of the company's country of incorporation. Pre-action settlement procedure, competent court, recourse to the financial ombudsman.
Schedules
Contract specifications, tariffs, list of restricted jurisdictions.
