FAQs: IBIE Account Migration

概観: 

This is an important document regarding the proposed transfer of your account from IBLUX to IBIE that requires your attention. Please read the entirety of this document ahead of taking any action referred to in the Covering Letter sent to you via email.

Background: 

Please take time to read this FAQs, which summarises some of the key changes to the regulatory framework which will be brought about by the Proposed Transfer (as described below) and provides answers to some of the more general questions that you may have. The FAQs should be read in conjunction with the Covering Letter and the documents that are attached to the Covering Letter. If you require any further information, please get in touch with us using the contact details provided in the Covering Letter.

This FAQ is split into three parts.
 
  • Part A sets out key information in relation to the Proposed Transfer (as described below).
  • Part B covers key legal and regulatory topics that arise as a result of the Proposed Transfer (as described below).
  • Part C aims to answer any other questions that you may have and provides some further and more practical information in relation to what will and will not be changing following the Proposed Transfer (as described below).
 
PART A – THE PROPOSED TRANSFER
 
1.     What is the situation currently and why do things have to change?
 
Interactive Brokers Luxembourg SARL was granted authorisation by the Luxembourg Financial Sector Supervisory Commission (Commission de Surveillance du Secteur Financier, CSSF) to operate as an investment firm in November 2019. At that time, the CSSF imposed a limit of 10,000 accounts on IBLUX, which we accepted with the hope that this limit would be relaxed. As time has passed, we have recognised that our initial aspiration to grow a European business via IBLUX no longer makes sense since the bulk of Interactive Brokers’ European business has moved to other Interactive Brokers entities over the past four months in recognition of Brexit. Therefore, in the coming months, we will cease IBLUX’s regulated business, and as a result, we will need to make some changes in relation to which legal entity does business with you.
 
2.     What are the “changes” envisaged above?
 
We propose to transfer the business that you currently conduct with IBLUX to our Irish affiliate, Interactive Brokers Ireland Limited (“IBIE”).  In other words, it is our intention that all of your accounts, investments and services currently provided to you by IBLUX will instead be provided by IBIE (for convenience we will refer to this as the “Proposed Transfer”).
 
3.     When will the Proposed Transfer occur?
 
The Proposed Transfer will occur soon after 30th June 2021. We will alert you just before processing the transfer of your account.
 
4.     Who is IBIE? What sort of a firm is it?
 
IBIE was granted authorisation by the Central Bank of Ireland to operate as an investment firm in December 2020. IBIE’s regulatory status and profile will be very similar to IBLUX’s. This is because both IBIE and IBLUX are authorised pursuant to the second Markets in Financial Instruments Directive (Directive 2014/65/EU). This is an EU-wide piece of legislation the purpose of which is to, as much as possible, harmonise how investment firms are regulated across the EU.
 
This does not mean there are not some differences between the legislation that applies to your relationship with IBLUX at present and that which will apply once your account is transferred to IBIE.  We explain this in more detail in Part B of this FAQs.
 
5.     What are IBIE’s legal details?
 
Interactive Brokers Ireland Limited is registered as a private company limited by shares (registration number 657406) and is listed in the Register of Companies maintained by the Irish Companies Registration Office. Its registered address is 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland.  We are still finalising IBIE’s day-to-day contact details, and we will be in touch with these details in due course. 
 
6.     Who will regulate IBIE and what are their contact details?
 
As set out above the Central Bank of Ireland is the competent regulator for IBIE (in the same way that the Luxembourg Financial Sector Supervisory Commission (“CSSF”) is the competent regulator for IBLUX).  The Central Bank of Ireland’s contact details are set out below:
 
Location
The Central Bank of Ireland
New Wapping Street
North Wall Quay
Dublin 1
D01 F7X3
 
Contact Numbers
Phone: +353 (0)1 224 6000
Fax: +353 (0)1 224 5550
 
Postal Address
Central Bank of Ireland
P.O. Box 559
Dublin 1
 
Public Helpline
E-mail: enquiries@centralbank.ie
Lo-Call: 1890 777 777
Phone: +353 (0)1 224 5800
 
7.     Where does IBIE fit with respect to the broader Interactive Brokers group?
 
IBIE is a wholly-owned subsidiary that sits within the broader Interactive Brokers Group.
 
8.     What does the Proposed Transfer mean for me? Will there be any material impacts?
 
We do not anticipate any material impacts for you as a result of the Proposed Transfer.  Nonetheless, it is very important that you read this FAQs carefully and in full and make sure that you understand what the changes are for you.
 
9.     What do I have to do if I want to continue doing business with Interactive Brokers?
 
If you would like to continue to do business with Interactive Brokers, we require your cooperation and action.
 
Specifically, we need you to consent and agree to the Customer Agreement and other Documents available under the Important Information section of the Proposed Transfer process and to the regulatory matters outlined in the Covering Letter, the Important Information and Consent sections of the Proposed Transfer process.  You can do this by following the instructions in the Covering Letter.
 
To be clear, you do not have to consent to the Proposed Transfer if you feel that you may be adversely affected by it. However, you should be aware that if you decide to decline or do nothing, IBLUX will not be able to keep servicing your account after its license is relinquished. As part of the process, your account may be restricted, and your account may be forced closed. You have the ability to transfer the positions in your account to another broker within 30 days of receiving the communication inviting you to transfer your account. If you wish to decline, please follow the instructions in the Covering Letter.
 
In either case, we ask that you read the entirety of this FAQs and the Covering Letter before deciding to consent to or decline the Proposed Transfer.
 
10.What happens next?
 
If you consent to the transfer, please complete all actions detailed in the Covering Letter and we will prepare your account for the Proposed Transfer.  Following the Proposed Transfer, IBIE will write to you with further information about your new relationship with them.
 
PART B – LEGAL AND REGULATORY CHANGES THAT YOU SHOULD BE AWARE OF
 
1.     What terms and conditions will govern my relationship with IBIE following the Proposed Transfer? Are these different to the ones that currently apply?
 
Trades that you conduct after the Proposed Transfer will be governed by the new Customer Agreement between you and IBIE.  A copy of the new Customer Agreement is available in the Important Information section of the Proposed Transfer process.  Please see the response to Question A3 above in relation to the timing for the Proposed Transfer.
 
2.     What conduct of business rules (including best execution) will apply to my relationship with IBIE? Are there any material differences that will apply to my relationship with IBIE compared to those that apply to my existing relationship with IBLUX?
 
The Luxembourg conduct of business rules currently apply to your account with IBLUX. These rules are based heavily on the recast Markets in Financial Instruments Directive, the Markets in Financial Regulation and various delegated directives and regulations (collectively, “MiFID”).  
 
Similar to the Luxembourg conduct of business rules, the Irish conduct of business rules are based on MiFID.
 
3.     How will my investments that I custody with IBIE be held from a legal/regulatory perspective? Are there any material differences that will apply to my relationship with IBIE compared to those that apply to my existing relationship with IBLUX?
 
Luxembourg custody rules currently apply to your accounts with IBLUX. These rules are based heavily on MiFID.  
 
Going forward, Irish custody rules will apply to your relationship with IBIE.  Like the Luxembourg custody rules, the Irish conduct of business rules are based on MiFID.  Please consult the Client Assets Key Information Document attached in the Important Information section in relation to the Irish custody regime.
 
4.     How am I protected against loss? Are there any material differences that will apply to my relationship with IBIE compared to those that apply to my existing relationship with IBLUX?
 
Ireland’s compensation scheme is similar to the compensation scheme you have access to in Luxembourg. The purpose of the Irish Investor Compensation Scheme is to pay compensation to you (subject to certain limits) if you have invested money or investment instruments in either of the following cases:
 
  • A firm goes out of business and cannot return your investments or money; and
  • A Central Bank of Ireland determination or a court ruling has been made under the Investor Compensation Act 1998;
 
The Investor Compensation Company DAC (ICCL) administers the scheme. IBIE will be a member of the scheme.
 
The scheme covers investment products including:
 
  • Public and private company shares
  • Units in collective investment schemes
  • Life insurance policies (including unit-linked funds)
  • Non-life insurance policies
  • Tracker bonds
  • Futures and options
 
Usually, you can only make a claim after a firm goes out of business and its assets have been liquidated and distributed to those who are owed money. Please check the details of the schemes for any limits that apply – not all losses will be covered as there are maximum levels of compensation.  The ICCL will pay you compensation for 90% of the amount you have lost, up to a maximum of €20,000.
 
5.     How do I make a complaint to IBIE? Are there any material differences that will apply to my relationship with IBIE compared to those that apply to my existing relationship with IBLUX? What if my complaint relates to something that happened while I was a customer of IBLUX?
 
The new Customer Agreement sets out how to lodge a complaint with IBIE.  The complaints handling procedures are materially similar to those that apply to your existing relationship with IBLUX.  If the substance of your complaint relates to something that happened prior to the Proposed Transfer, then you should address your complaint to IBLUX.  
 
6.     After the Proposed Transfer, will I still have access to the CSSF to file a complaint?
 
In case of a complaint, investors should follow the complaints procedure as referred to in the Customer Agreement.  Once the Proposed Transfer has taken place, the CSSF will cease to have jurisdiction over any complaints that you may have in respect of IBLUX.  However, please be aware that Ireland has a dispute resolution scheme in the form of the Financial Services and Pensions Ombudsman (“FSPO”). The FSPO is a free and independent statutory dispute resolution scheme for financial services.  You may be eligible to make a complaint to the FSPO if you are an “eligible complainant”.  Details of who are “eligible complainants” can be found on www.fspo.ie. The FSPO can be contacted at:
 
Postal Address
Financial Services and Pensions Ombudsman
Lincoln House,
Lincoln Place
Dublin 2
D02 VH29
 
Telephone
+353 (0)1 567 7000
 
Email
 
7.     How will my personal data be processed and protected? Are there any material differences that will apply to my relationship with IBIE compared to those that apply to my existing relationship with IBLUX in this context?
 
Your data will be processed and protected in accordance with the Interactive Brokers Group Privacy Policy which can be found at: https://www.interactivebrokers.com/en/index.php?f=305. There will be no material change.
 
PART C – OTHER PRACTICAL QUESTIONS AND NEXT STEPS
 
1.     Who should I contact before the Proposed Transfer takes place and after the Proposed Transfer if I have any questions in the ordinary course?
 
Generally speaking, you should contact IBLUX with any questions that you may have prior to the Proposed Transfer, and you should contact IBIE with any questions that you may have following the Proposed Transfer taking place.  Regardless of who you contact at Interactive Brokers, we will ensure your query is promptly dealt with and we will help you to connect with the right person or department.
 
2.     Will the range of products offered be the same?
 
IBIE will offer the same range of products as IBLUX plus some additional products such as (i) Bonds; (ii) OTC Precious Metals, and (iii) OTC Metal Futures. IBIE will also offer the ability to participate in the Stock Yield Enhancement Programme. Please review the Stock Yield Enhancement Programme Agreement if you are interested in participating.
 
 
3.     I currently trade OTC derivatives with IBLUX – what will happen to my open positions?
 
Your open positions will be transferred to IBIE and you will face IBIE rather than IBLUX.  You will no longer have any legal relationship with IBLUX in relation to those positions.  Please follow the link to the PRIIPs KID landing page in the Covering Letter to consult the applicable Key Investor Information Document.
 
4.     What happens to any security I have granted to IBLUX as part of a margin loan?
 
If you have granted security or collateral to IBLUX this will transfer to IBIE upon the Proposed Transfer taking place.
 
We do not anticipate you needing to take any steps to reflect the change in beneficiary, although we may need to take some administrative steps of our own to update security registers with the change in details. This should, however, not affect our priority or otherwise affect the date from which the security is valid.
 
5.     Will I have access to the same trading platform or be subject to any software changes following migrations?
 
The migration will have no impact upon the software you use to trade or administer your account. The technology will remain the same as it is today.
 
6.     Will all account balances be transferred at the same time?
 
All balances, with the exception of accruals (e.g., interest, dividends) will be transferred at the same time.  Once accruals have been posted to cash, they will automatically be swept to the migrated account.  
 
7.     What will happen to my current account following migration? 
 
Once all accruals have been swept, your current account will be closed and inaccessible for trading purposes.  You will still be able to access this closed account via the Client Portal for purposes of viewing and printing archived activity and tax statements.
 
8.     Will IBKR’s commissions and fees change when my account is migrated? 
 
No. IBKR commissions and fees do not vary by the broker your account is maintained with.
 
9.     Will my trading permissions change when my account is migrated? 
 
No. Your trading permissions will not change when your account is migrated.
 
10. Will open orders (e.g., Good-til-Canceled) be carried over when my account is migrated? 
 
Open orders will not be carried over to the new account, and we recommend that clients review their orders immediately following the migration to ensure that the open orders are consistent with their trading intentions.
 
11. Will I receive a single, combined annual activity statement at year end? 
 
No. You will receive an annual statement of your existing account which will cover the period starting 1 January 2020 through the date of migration and a second annual statement for your new account which will cover the period starting from the migration date through the end of the year.
 
12. Will the current cost basis of positions be carried over when my account is migrated? 
 
Yes, this migration will have no impact upon the cost basis of your positions.
 
13. Will the migrated account retain the same configuration as the current account? 
 
The configuration of the account following migration will match that of the current account to the extent permissible by regulation. This includes attributes such as margin capability, market data, additional users, and alerts. In limited instances, an account will be migrated to a jurisdiction where the full scope of product eligibility cannot be offered. Client’s holding restricted products may migrate and maintain or close such positions but won’t be allowed to increase the position.
 
14. Will my login credentials change?
 
No. Your username, password, and any 2-factor authentication process in place for your existing account will remain active following migration. You will, however, be assigned a new account ID for your migrated account.