Legal entity
[LEGAL ENTITY]
JB Management is the trading name of [LEGAL ENTITY], an investment firm licensed by [REGULATOR] under number [LICENCE No.]. The company is subject to the MiFID II directive and the related EU investor protection rules.
supervision
Registration number
[N]
Registered office
[ADDRESS]
Regulator
[REGULATOR]
Licence number
[LICENCE No.]
Date of issue
[DATE]
Register check — link to the regulator's public register
Applicable regulation — MiFID II, MiFIR, IFR and IFD, GDPR, anti-money laundering directives
Countries served — 30 countries of the European Economic Area
custody of funds
Segregation of funds
Client money is held in separate bank accounts, ring-fenced from the company's operating funds. JB Management does not use client funds to finance its own operations. In the event of the company's insolvency, client funds do not form part of the insolvency estate.
Partner banks
Client accounts are held with Tier-1 credit institutions in the European Economic Area. The list of banks is available on request.
Daily reconciliation
Client account balances are reconciled against the company's liabilities to clients every business day. The reconciliation results are reviewed by the external auditor and the regulator.
protection
Retail clients of JB Management are protected against a negative balance. The aggregate loss across all positions cannot exceed the funds on the trading account. If a sharp price move or a price gap pushes the balance below zero, the negative amount is written off by the company and is not charged to the client.
This requirement was introduced by ESMA in 2018 and is enshrined in the national legislation of EU member states. It applies only to retail clients; professional clients do not have this protection.
Investor compensation fund
cover per client if (brand) is unable to meet its obligations
Covers unfulfilled obligationsDoes not cover trading risk
Default by the company on its obligations- Broker insolvency
- Failure to return client funds
Trading losses from market risk- Loss from an unsuccessful trade
- Consequences of the client's own decisions
esma limits
Major currency pairs
1:30margin 3.33%
Minor currency pairs, gold, major indices
1:20margin 5%
Other commodities and minor indices
1:10margin 10%
Individual shares and other underlying assets
1:5margin 20%
Cryptocurrency CFDs
1:2margin 50%
Major currency pairs are those made up of the US dollar, euro, Japanese yen, pound sterling, Canadian dollar and Swiss franc.
automatic risk control
If the total margin level on the account falls below 50 per cent of the required initial margin, JB Management is obliged to close one or more open positions. The rule is applied to the account as a whole, not to individual positions. This, too, is an ESMA requirement: the mechanism prevents losses from growing without limit.
Required initial margin
Automatic position close-out
0%Margin level relative to initial margin100%
MiFID II
MiFID II divides clients into categories with different levels of protection.
| Protection | Retail client | Professional client |
|---|---|---|
| ESMA leverage limits | | |
| Negative balance protection | | |
| Compensation fund cover | | |
| Standardised risk warnings | | |
| Ban on deposit bonuses | | |
To qualify as a professional client, you must meet at least 2 of the following 3 criteria
You have carried out transactions of significant size at an average frequency of ten per quarter over the previous four quarters;
Your portfolio of financial instruments and cash deposits exceeds EUR 500,000;
You work or have worked in the financial sector for at least one year in a professional position requiring knowledge of the transactions concerned.
Moving to professional status is not an upgrade in conditions. It is a deliberate trade-off of protections for leverage. Before applying, consider whether you really need that trade-off.
boundaries
We do not offer retail clients deposit bonuses or monetary incentives to trade, as this is prohibited by ESMA.
We do not guarantee returns or promise any specific profit.
We do not give personal investment recommendations. Our analysis is for information only and does not take into account the financial situation of any individual client.
We do not manage client funds under a power of attorney.
We do not accept payments from third parties, only from accounts held in the name of the trading account holder.
We do not make cold calls urging clients to increase their deposit.
F & Q
Open the public register of [REGULATOR] and search for [LEGAL ENTITY] by licence number [LICENCE No.]. The entry lists the permitted activities, the licence status and the countries in which the company is authorised to provide services.
Client funds are held separately from the company's assets and do not form part of the insolvency estate. Clients are additionally covered by the compensation fund for up to EUR 20,000 per person should the company default on its obligations.
Not for retail clients. Negative balance protection caps losses at the funds on the trading account. Professional clients do not have this protection.
Leverage of 1:30 is the maximum for retail clients at every broker regulated in the EU. Higher leverage is offered by firms licensed outside the European Economic Area. When dealing with them, clients do not benefit from the European protections: segregation of funds, the compensation fund and negative balance protection.
The automatic closing of positions when the account equity falls to half of the required initial margin. The rule is calculated for the account as a whole.