Client notification on the amendments of the Terms and Conditions of rendering investment services, commission rates and account codes on the derivatives market of Moscow exchange

Please be aware that starting from 10 December 2015 amendments of the Terms and Conditions of rendering investment services of AS KIT Finance Europe (hereinafter referred to as Terms and Conditions), as well as tariffs are coming into force.

These amendments mainly concern the algorithm of marginal lending, the introduction of new parameter such as risk rate, affecting the calculation of the initial and maintenance margin levels, assessment of a client's portfolio. These changes will allow more flexibility in assessing the market conditions of a wide range of instruments accepted as collateral or for short positions. In addition to the abovementioned changes additional grading (classification of clients) subject to acceptable marginal lending risk is introduced. Clients who have the right to get lower rates of risk (higher leverage) will be informed additionally. Other clients who have previously had the 2nd leverage (initial margin level - 33% and the threshold margin level - 25%) will continue to get the service on the updated standard conditions according to the Terms and Conditions and the risk rates without additional notification. Clients, who have no access to margin transactions, will continue investment activities without any changes.

You may find more information about the new margin trading terms on our website www.kfe.ee in the section Brokerage servises / Margin lending.

In addition to the securities market, a similar approach is also applied to the marginal lending in the FX market and the precious metals market of the Moscow Exchange.

We made some changes in the tariffs, in particular adjusted commission fees for securities transfers, reduced the minimum trading commission in the KIT-General tariff and introduced free of charge authorization for iQUIK / QUIK Android for clients with main trading terminal QUIK.

Please pay your attention to the introduction of fees for non-trade orders submitted by fax, email or in paper form starting from 01.01.2016. We kindly ask you to access Personal account in advance and use the service for document provision to KIT Finance Europe. We also have to inform that due to technical features and structuring of the accounts opened on the derivatives market of the Moscow Exchange (also known as FORTS), all clients, having a structure of accounts as 1500XXX (where XXX - free symbols) will be obliged to change them to new accounts before 01.01.2016. Information about the new accounts will be provided to you separately. KIT Finance Europe keeps the right to suspend the opening of new positions on old accounts and to carry out a forced transfer of open positions to new accounts. To avoid misunderstandings, we kindly ask you to carry out these activities by yourself.

You may find new documents at the website of KIT Finance Europe - www.kfe.ee

If you have any queries please do not hesitate to contact our client services department by sending an email to clients@kfe.ee

Thank you for your cooperation and apologize for any inconvenience.