MiFID appropriateness assessment questionnaire for legal person

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General information

In order to implement Directive 2014/65/ EU of the European Parliament and of the Council (MiFID II), its implementing acts and the national legislation transposing the Directive into national law, investment firms must ensure a high level of investor protection. Investment products and services offered in financial instruments markets are often complex and require some expertise, while trading with financial instruments involves a risk that can result in significant losses or unexpectedly high returns.

AS Redgate Capital (hereinafter Redgate) must act honestly, fairly and professionally and in accordance with the best interests of the client, while providing services to customers. In order to provide investment services in the best interests of the client, Redgate must assess whether a particular investment product or service or financial instrument is appropriate for the client. To do this, Redgate must gather information about the client's knowledge and experience with respect to the relevant investment product, service or financial instrument. For the above reasons, we kindly ask you to fill in the following questionnaire.

After completing the questionnaire, we will evaluate your answers and provide you with the related results. The results are recorded and taken into account when offering investment services / products to legal entity you represent.

We hereby emphasize that the fact that Redgate may consider any product or service to be suitable on the basis of this questionnaire, does not constitute an investment recommendation, investment advice or offer for acquiring securities or the use of the investment services.

Information about representative

First name(s) of the representative*

Surname of the representative*

Personal identification code*

Role of the representative

Contacts

Phone*

E-mail*

Knowledge and experience

Representative's education*

Is your education or profession related to investing?*

YES
NO

Is your education or profession related to investing?

Is one or more of the following statements true:

You have a higher education, specializing in investment or financial markets*

YES
NO

You have a higher education, specializing in investment or financial markets

You have worked on a position related to investments in securities within the previous 5 years*

YES
NO

You have worked on a position related to investments in securities within the previous 5 years

General understanding of investment risks

Which investment strategy is the most risky?

Investing in one quality share (e.g. Apple Inc.)
Investing in an investment fund that invests 50% of the fund's assets in shares included in the S&P 500 stock index and 50% of the fund's assets in investment grade bonds
Investing in a portfolio of 20 quality shares (so-called blue-chip)
Don't know / can't answer

Which strategy is riskier?

Investing all your free money at once
Investing free money in several parts in smaller amounts
Don't know / can't answer

Which instruments would you like to invest in?

Bonds*

YES
NO

Bonds

Shares*

YES
NO

Shares

Units or shares in UCITS and exchange traded funds (ETFs)*

YES
NO

Units or shares in UCITS and exchange traded funds (ETFs)

Complex investment funds, whether listed or not*

YES
NO

Complex investment funds, whether listed or not

Structured investment products*

YES
NO

Structured investment products

Other instruments with complex structure (e.g. derivatives, instruments related to commodities etc.)*

YES
NO

Other instruments with complex structure (e.g. derivatives, instruments related to commodities etc.)

Knowledge about financial instruments

Do you know the characteristics and the risks associated with the asset class?

Bonds*

I am not familiar with the characteristics or risks of the asset class
I have some knowledge of product characteristics and risks
I know the product characteristics and risks thoroughly

Shares*

I am not familiar with the characteristics or risks of the asset class
I have some knowledge of product characteristics and risks
I know the product characteristics and risks thoroughly

Units or shares in UCITS and exchange traded funds (ETFs)*

I am not familiar with the characteristics or risks of the asset class
I have some knowledge of product characteristics and risks
I know the product characteristics and risks thoroughly

Complex investment funds, whether listed or not*

I am not familiar with the characteristics or risks of the asset class
I have some knowledge of product characteristics and risks
I know the product characteristics and risks thoroughly

Structured investment products*

I am not familiar with the characteristics or risks of the asset class
I have some knowledge of product characteristics and risks
I know the product characteristics and risks thoroughly

Other instruments with complex structure (e.g. derivatives, instruments related to commodities etc.)*

I am not familiar with the characteristics or risks of the asset class
I have some knowledge of product characteristics and risks
I know the product characteristics and risks thoroughly

Your previous investment experience

Bonds

Shares

Units or shares in UCITS and exchange traded funds (ETFs)

Complex investment funds, whether listed or not

Structured investment products

Other instruments with complex structure (e.g. derivatives, instruments related to commodities etc.)

Please indicate which of the following statements is true (there may be more than one true statement )

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Bonds

Bonds traded on a regulated market can be sold at any time before maturity without incurring losses
Unlisted bonds are primarily characterized by low liquidity and low trading activity
In the event of the issuer's bankruptcy, the claims of the holders of covered bonds are always satisfied with last ranking
Duration measures the bond's sensitivity to interest rates and is used to assess interest rate risk. The higher the duration, the more sensitive the bond is to changes in interest rates and the higher the interest rate risk
If the price of a bond increases, the yield of the bond also increases

Bonds

Please indicate whether the following statements are true (there may be more than one true statement)

In the event of liquidation or bankruptcy of the issuer, the claims of the holders of subordinated bonds will be satisfied with the latter ranking than the claims of the holders of regular bonds, only the shareholders' claims are satisfied with the latter ranking than those of subordinated bond holders*

TRUE
FALSE
DON'T KNOW

Unlisted bonds are primarily characterized by high liquidity and high trading activity*

TRUE
FALSE
DON'T KNOW

If the price of the underlying asset of a derivative linked to a structured bond increases by 1%, the value of the derivative positively correlated to the price increase of the underlying asset increases by more than 1%*

TRUE
FALSE
DON'T KNOW

Duration measures the bond's sensitivity to interest rates and is used to assess interest rate risk. The higher the duration, the more sensitive the bond is to changes in interest rates and the higher the interest rate risk*

TRUE
FALSE
DON'T KNOW

The market price of a convertible bond does not depend on the price of the underlying share*

TRUE
FALSE
DON'T KNOW

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Shares

A share is essentially a loan granted to a company in the form of a security, the interest of which is dividends
The acquisition of common shares entitles the investor to vote at the general meeting of shareholders and to receive a proportionate share of any dividend payments. At the same time, the risks associated with the company's operations are reflected in the fluctuation of the share price, which means that the shareholder may gain both profit and loss.
An unlisted share is a financial instrument that is not traded on a regulated market (e.g stock exchange) and instead is traded between market participants over-the-counter (OTC). Therefore, there may be limited or no information on the transaction price or quantities of a share
As a rule, both bid and ask quotes are published by stock-exchanges. The difference between the bid and ask price is called the spread. however, the average of the bid and ask quotations is denoted by the term mid-price
Unlisted shares are also called bearer shares or treasury shares

Shares

Please indicate whether the following statements are true (there may be more than one true statement)

A share is essentially a loan granted to a company in the form of a security, the interest of which is dividends*

TRUE
FALSE
DON'T KNOW

The acquisition of common shares entitles the investor to vote at the general meeting of shareholders and to receive a proportionate share of any dividend payments. At the same time, the risks associated with the company's operations are reflected in the fluctuation of the share price, which means that the shareholder may gain both profit and loss*

TRUE
FALSE
DON'T KNOW

An unlisted share is a financial instrument that is not traded on a regulated market (e.g. stock exchange) and instead is traded between market participants over-the-counter (OTC). Therefore, there may be limited or no information on the transaction price or quantities of a share*

TRUE
FALSE
DON'T KNOW

As a rule, both bid and ask quotes are published by stock-exchanges. The difference between the bid and ask price is called the spread. However, the average of the bid and ask quotations is denoted by the term mid-price*

TRUE
FALSE
DON'T KNOW

The preferred shares give the shareholder a greater decision-making right at the general meeting of shareholders than the common shares*

TRUE
FALSE
DON'T KNOW

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Units or shares in UCITS, excluding structured UCITS

A UCITS is an investment fund regulated by a EU directive, which is subject to strict rules regarding, for example, investment strategy, risk diversification, etc.
While investing in UCITS, it must be taken into account that bond funds have a higher risk than equity funds because the equity risk in a UCITS is diversified.
The fund unit's net asset value (NAV) of a UCITS is always expressed in euros
The fund unit's net asset value (NAV) of a UCITS is the value of securities, cash and other assets and rights included in the fund's assets, less liabilities (e.g fees and expenses paid on account of the fund) and the difference is divided by all issues issued and the number of units not redeemed
The alpha ratio indicates the relative volatility of the fund unit's net asset value relative to the benchmark index i.e the relative risk of the fund unit

Units or shares in UCITS and exchange traded funds (ETFs)

Please indicate whether the following statements are true (there may be more than one true statement)

A UCITS is an investment fund regulated by a EU directive, which is subject to strict rules regarding, for example, investment strategy, risk diversification, etc.*

TRUE
FALSE
DON'T KNOW

Exchange-traded funds (ETFs) can be bought or sold on the stock market in the same way as common stocks, but they generally have higher expenses and less liquid than ordinary mutual funds*

TRUE
FALSE
DON'T KNOW

Inverse ETFs allow investors to profit from a falling market without actually having to short-sell securities*

TRUE
FALSE
DON'T KNOW

The fund unit's net asset value (NAV) of a UCITS is the value of securities, cash and other assets and rights included in the fund's assets, less liabilities (e.g. fees and expenses paid on account of the fund) and the difference is divided by all issues issued and the number of units not redeemed*

TRUE
FALSE
DON'T KNOW

Leveraged exchange-traded funds (ETFs) use financial derivatives and debt to amplify the returns and are therefore well suited for long-term investment, as the derivatives or debt instruments used for leverage usually have no expiration date*

TRUE
FALSE
DON'T KNOW

Hidden

Complex investment funds, whether listed or not

An alternative investment fund (AIF) provides retail investors with easy access to asset classes in which investing is otherwise difficult or impossible for the retail investor
Closed-end funds are never traded on a regulated market
An alternative investment fund may not be offered to a retail client (non-professional investor).
The market price of a share or unit of an alternative investment fund (AIF) traded on a regulated market is always equal to the net asset value of the share or unit
A closed-ended fund is an alternative fund which units or shares are not redeemed at the request of unit-holders, shareholders or partners before dissolution of the fund

Complex investment funds, whether listed or not

Please indicate whether the following statements are true (there may be more than one true statement)

An alternative investment fund (AIF) provides retail investors with easy access to asset classes in which investing is otherwise difficult or impossible for the retail investor*

TRUE
FALSE
DON'T KNOW

Closed-end funds are never traded on a regulated market*

TRUE
FALSE
DON'T KNOW

An alternative investment fund may not be offered to a retail client (non-professional investor)*

TRUE
FALSE
DON'T KNOW

The market price of a share or unit of an alternative investment fund (AIF) traded on a regulated market is always equal to the net asset value of the share or unit*

TRUE
FALSE
DON'T KNOW

A closed-ended fund is an alternative fund which units or shares are not redeemed at the request of unit-holders, shareholders or partners before dissolution of the fund*

TRUE
FALSE
DON'T KNOW

Structured investment products

Please indicate whether the following statements are true (there may be more than one true statement)

It's common for structured investment products to include derivatives as part of their composition*

TRUE
FALSE
DON'T KNOW

Structured investment products can never be sold before maturity*

TRUE
FALSE
DON'T KNOW

Structured investment products are not subject to the issuer's credit risk (issuer default risk)*

TRUE
FALSE
DON'T KNOW

The price of a structured investment product is not exclusively determined by the value of the underlying asset*

TRUE
FALSE
DON'T KNOW

A principal-protected structured investment product provides capital protection as well as opportunity to participate in price gains of the underlying asset (such as a single financial instrument, a set of instruments, or a market index)*

TRUE
FALSE
DON'T KNOW

Hidden

Instruments with complex structure (e.g. subordinated bonds, structured bonds, preferred shares, etc.)

In the event of liquidation or bankruptcy of the issuer, the claims of the holders of subordinated bonds will be satisfied with the latter ranking than the claims of the holders of regular bonds, only the shareholders claims are satisfied with the latter ranking than those of subordinated bond holders
The preferred shares give the shareholder a greater decision-making right at the general meeting of shareholders than the common shares
A structured bond is a debt obligation whose performance is related to the performance of the underlying asset, group of underlying assets or index
If the price of the underlying asset of a derivative linked to a structured bond increases by 1%, the value of the derivative positively correlated to the price increase of the underlying asset increases by more than 1%
The market price of a convertible bond does not depend on the price of the underlying share

Other instruments with complex structure (e.g. derivatives, instruments related to commodities etc.)

Please indicate whether the following statements are true (there may be more than one true statement)

Exchange-traded commodities (ETC) are similar to ETFs, but the underlying assets are mostly different commodities such as metals, energy and livestock*

TRUE
FALSE
DON'T KNOW

Financial derivative is a security with a price that is dependent upon or derived from one or more underlying assets (e.g. shares, bonds, commodities, currencies, interest rates or market indices) and derivatives are used for two main purposes to hedge investments and to speculate*

TRUE
FALSE
DON'T KNOW

The subscription right gives the right to subscribe the company's shares or bonds in priority order for a limited period of time and becomes worthless after it is not used and/or expires*

TRUE
FALSE
DON'T KNOW

In securities markets, you can invest in commodities via 1) commodity futures contracts 2) exchange traded funds specialized on commodities (ETCs) 3) shares of companies that produce commodities*

TRUE
FALSE
DON'T KNOW

With buying simultaneously shares and call-options, investor can hedge the risk of the share's market price falling below the strike price of the option*

TRUE
FALSE
DON'T KNOW

Client confirmations

The information provided, enables AS Redgate Capital to assess in advance the appropriateness of the investment product or service or instrument to the client.

I understand and agree that:

Not submitting the information needed for assessment of appropriateness or not submitting correct, complete or accurate information, will make it difficult or impossible for AS Redgate Capital to assess whether specific investment products/ services are appropriate to the client;
The information provided in or in connection with the questionnaire will be used and processed by AS Redgate Capital in accordance with legislation and Terms and conditions of processing personal data;
The client undertakes to inform AS Redgate Capital immediately about the changes in the submitted data;
The provision of the service includes the processing of personal data by AS Redgate Capital and the authorized processors of personal data involved in the provision of services.

Additional information on the processing of personal data submitted by the Client and assistance in exercising your rights can be requested from the Data Protection Officer of AS Redgate Capital from the e-mail address: privacy@redgategroup.eu

Consent*

I declare that the information provided by me in the questionnaire is true, accurate and complete and I also confirm that I have read and agree to the above information and relevant internal regulations of AS Redgate Capital.*

Consent*

I have read the Terms and conditions of processing personal data and I grant AS Redgate Capital the right to process and store the submitted data.*