News

Existing clients do not need to submit additional access requests for currency pairs as the new instruments will appear in all clients’ trading platforms. Full list of new currency pairs has been provided.
In other news, margin rates will be substantially reduced from the 1st of February. Margin rates will be reduced to 6.9% p.a. for currencies other than ruble and 8% non-Ruble denominated securities.
Trade markets on betters terms now.

Investment advice
New edition of the Terms and conditions of rendering investment services (hereinafter – the Terms and Conditions) defines the provision of investment advisory services for Clients within which Appendix No. 4C (“Suitability and appropriateness test”) is also added.
OTC REPO
The OTC REPO transactions have been simplified. No separate additional agreement is needed any more. All the features of this service are described in the Appendix No. 13 of the Terms and Conditions.
FX trades from 1 currency unit and reduced rates
Due to increased number of available currency instruments (the list has been enlarged to 81 currency pairs), and opened access to OTC currency market, Chapter 9 of the Terms and Conditions has been amended. Starting from 1st February 2017 the minimum lot for many instruments (not related to Russian ruble) shall be 1 currency unit (for instance, EUR/USD – 1 USD). We have also amended the tariffs and considerably lowered the rates for more profitable customer transactions.
Reduced Margin lending rates in foreign currency
A significant decrease in interest rates charged for margin trades in USD, EUR and other currencies other than RUB has been implemented. Starting from 1st February 2017 the interest rate charged for AS KIT Finance Europe’s cash loans in EUR, USD and other currencies (except RUB) will be 6,9%, while the interest rate charged for securities loans in currency other than RUB will be 8% per annum .
CFD contracts on TWS trading platform
Trading in CFD contracts is now available for Clients via TWS trading platform. Please inform customer support about your inquiry and we will quickly provide access to these instruments.
Reduced commission for obtaining QUIK for free
We have decreased commission threshold to 100 USD for individual clients, which grants the right to receive international QUIK trading platform for free. iQUIK and QUIK Android mobile applications have become more affordable and are provided for free in case the main QUIK trading platform is already in use.
Russian Federation tax legislations
Due to changes in the Russian Federation tax legislations, and in order to facilitate your tax benefit claims, you will be required to provide to KIT Finance Europe additional documents listed in the Appendix No. 3 of the Terms and Conditions.
If you act in favor of the third parties, the requested documents are to be provided on the name of the end income recipient (beneficiary).
Please be aware that these changes will take effect from 1st January 2017 and in absence of the additional documents Russian tax agent will charge and withhold the amount of tax at a maximum rate implied by the Tax Code of Russian Federation.
Additional changes
We have unified and corrected tariff rates for trading operations. Unfortunately, we had to increase certain rates, although it shall be balanced by a reduction in minimum commissions charged as well as by a significant decrease in interest rates charged for marginal trading.
Changes in securities safekeeping tariff algorithm have been made. Rates are unchanged, but calculations will be carried out on a daily basis based on nominal (rather than market) value of securities for debt instruments.
We have also performed other modifications aimed at improving the quality of services, protecting the Clients and enhancing the transparency of instruments offered by AS KIT Finance Europe. We have changed legal proceedings place in case of conflict situation (section 20 of Terms and Conditions). These conditions apply to new customers and current customers that have signed the relevant additional agreement to contract.
New edition of the Terms and Conditions and tariffs can be found on our website www.kfe.ee in the section documents.
In case of additional questions or concerns, please do not hesitate to contact our client support service via clients@kfe.ee
We highly appreciate your cooperation. We wish you a Merry Christmas and a Happy New Year!

Sincerely yours,
AS KIT Finance Europe

What is changing?

Federal Law of the Russian Federation as of 28.06.2014 №173-FZ and the Decree of the Federal Tax Service of Russia № MMV-7-14 / 501 @ as of 9 November 2015 set out the obligation to the KIT Finance Europe to disclose the information to the Federal Tax Authorities of Russian Federation (FTS of RF) on the accounts owned by citizens of the Russian Federation or the accounts owned by legal entities directly or indirectly controlled by citizens of the Russian Federation.

When KIT Finance Europe is obligated to disclose the information to the FTS of RF?

The information should be disclosed yearly, by the 30th of September of the year, followed by the year when the account (deposit) was opened.

Therefore, KIT Finance Europe will disclose the information to the FTS of RF on all clients, who have entered into agreement on opening the account in 2015.

Who will be affected?

• Citizens of the Russian Federation;
• Entities directly or indirectly controlled by the Russian citizens (stake holding over 25%).

What information will be disclosed by KIT Finance Europe?

For individuals:

• FULL NAME
• INN
• Date and place of birth
• Residential Address in the Russian Federation and abroad (if any)
• Series and number of identity document
• Date of issue of this document
• The number of accounts, opening and closing dates, the type of account

For legal entities – registered in the Russian Federation:

• Legal name
• TIN and BIN
• GIIN (if any)
• Registered address in the Russian Federation
• The number of accounts, opening and closing dates, the type of account
• Information on the beneficiaries is not specified

For legal entities – not registered in the Russian Federation:

• Name
• TIN
• GIIN
• The registration number in the country of registration and date of registration
• Registered address in the country of registration
• The number of accounts, opening and closing dates, the type of account

+ Information on direct or indirect beneficiaries-Russian citizens-all the same as for individuals except the information on accounts.

The information about clients’ operations and assets will NOT be revealed to the FTS of RF.

What conclusions should be drawn from these regulations?

The FTS of RF will get the information on the accounts owned by citizens of the Russian Federation or the accounts owned by legal entities directly or indirectly controlled by citizens of the Russian Federation opened in 2015, if accounts owners have not previously provided this information.

Please note, the KIT Finance Europe is not a tax agent of Russian Federation and therefore does not pays the taxes and does not file a tax return for the clients. Clients are obligated to declare their income and fill the tax return forms themselves.

In order to assist clients in the collection of information for the tax purpose, upon on your request KIT Finance Europe will provide the account statement containing all the operations on the accounts for the required period.

Information in more details is available on https://www.nalog.ru/rn77/about_fts/docs/5852454/
http://www.consultant.ru/document/cons_doc_LAW_164843/

If you have any questions please do not hesitate to contact Customer Support at clients@kfe.ee

We look forward for the mutually beneficial cooperation.