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SEMINARS & TRAINING

The Cyprus Securities and Exchange Commission, in its effort to make the utmost contribution to the proper and reliable functioning of the Cyprus Capital Market, decided and proceeded with the creation of the investor education and information program.

The Cyprus Securities and Exchange Commission places great emphasis on timely, reliable and equitable information to the investing public and continuously strives to ensure the smooth functioning and development of the Cypriot capital market through the establishment of modern operating structures.

The Cyprus Securities and Exchange Commission considers investor information and training aimed at improving financial literacy as well as helping investors form an informed view of the available investment options and the investment risks involved so that they can take action. appropriate decisions to manage their funds.

Caution: “Knowledge is the investor’s security”.

The investor education and information program includes the following activities:

1. Contact using any of the options below where investors can ask their questions on various brokerage issues that concern them.
2. Written replies by post, email contact@cysecgroups.com
3. Information via the Commission’s website http://cysecgroups.com
4. Fact Sheets
5. Organization of Training Seminars

Project Objectives educating and informing the investing public are:

  • Inform investors about their rights and obligations
  • To help raise awareness of the risks involved in investor investment decisions
  • Investors acquire the knowledge they need to be able to form an up-to-date view and evaluate their investment options to the best of their ability.
  • Increase confidence in the institution
  • Establish investor information channels to and from investors

The Commission’s effort is to keep investors informed and educated. Investors need to be aware of the key features of the capital market as well as the investment risks involved and believe that “the informed investor is the right investor”.

The Commission welcomes your comments, ideas and suggestions but emphasizes that the information provided on its website and all information provided in its publications is purely educational information and should in no way be construed as advisory.

1. THE CYPRUS SECURITY COMMITTEE
The Cyprus Securities and Exchange Commission was established in accordance with Article 5 of the Securities and Exchange Commission (Recommendation and Responsibilities) Law of 2001 (Law 64 (I) / 2001) as a legal entity governed by public law. The Commission acts as an independent supervisory authority and has the responsibility of overseeing the capital market, ensuring that it operates smoothly, overseeing the implementation of brokerage legislation, and protecting the investing public.

The Cyprus Securities and Exchange Commission is governed by a five-member Board consisting of the Chairman and the Vice-President who provide their services in full and exclusive employment and three other members. At the Council meetings a representative of the Governor of the Central Bank shall be present who shall have the right to put items on the agenda, to participate in the discussions and to express opinions, but shall be deprived of the right to vote.

The Commission, in accordance with the Legislation, sets out the general rules for the organization and operation of the capital market, issues instructions on how to apply these rules and takes steps to ensure the proper functioning of the market.

2. BANKING INSTITUTION

A Cyprus Stock Exchange operates in Cyprus, the Cyprus Stock Exchange (CSE).

The Stock Exchange is defined as a formal and organized market through which transactions are executed (brokerage transactions). It trades in company stocks, corporate and government securities, stock options, rights and more. Price formation is the result of supply and demand from the investing public. The Stock Exchanges are regarded as the main drivers of economic growth and as a means of channeling savings into the country’s most productive investments.

The CSE commenced its operations on March 29, 1996. The relevant CSE law and regulations were passed by parliament from 1993 to 1995, and a number of amendments were then made to improve and adapt to new market conditions. The informal stock market has been operating since 1979, under the auspices of the CCCI.

2.1 Purposes of the Stock Exchange
1. To enable Companies to grow by raising funds from investors.
2. Protect the investing public through legislation and ensure the smooth and smooth functioning of the Stock Market
3. Encourage and promote investment, take the necessary steps to develop the value market as well as control and regulate transactions. for securities.
4. Ensure full and equal information for all investors, avoiding misleading markets and suppressing fraudulent and inappropriate brokerage methods.
5. The preparation and submission for approval of those necessary to achieve the purposes of the Exchange Regulations and the execution of any other action necessary for that purpose.
6. Expand the Stock Market by introducing new companies from Cyprus and abroad.
7. Introduction of new stock products.

2.2 Benefits of Companies from Listing
1. Raising the capital they need at lower cost of financing to grow and expand their business.
2. Limits their reliance on traditional funding mechanisms.
3. Strengthening and expanding the capital and shareholder base to better address competition.
4. Improvement of management and strategy methods as control shifts from the family environment to a large number of shareholders with pressure for positive results and improved investment flows.
5. Opportunity to list their securities in other stock exchanges. As a result, they further expand their equity and activities in other markets.
6. Better visibility and prestige because listing a company is considered a gain.
7. Better return on investment abroad with better returns.
8. The stock market value of a company represents its true value and shows how strong it is. Its shareholders have the option at any time to liquidate their investment, making it more difficult to invest in private equity or even real estate.

2.3 Disadvantages of listing on the Exchange
1. Reduction of the degree of control by owners.
2. Supervisory control by the Securities and Exchange Commission and the CSE authorities.
3. Companies’ continuing obligation to inform the investing public. Semi-annual, Preliminary and Annual Reports.
4. Statement on any transaction of a shareholder, officer or manager.
5. Increased expenses related to the disclosure of the company.

2.4 Factors affecting the CSE and the prices of the shares
1. The state of the Cypriot economy, the growth rate of the economy, interest rates, macroeconomic indicators (inflation), tourism etc.
2. Political stability, the problem of Cyprus various wars of neighboring countries.
3. Prospects and developments of listed companies such as acquisitions, mergers and concessions from the Company to significant shareholders.
4. The course of other stock markets due to globalization and the course of the Athens Exchange (ASE) in particular affect the course of the CSE.
5. Various rumors play an important role in a stock market and investors need to be very careful not to be distracted by the rumors circulating but to base their investment choices on official and confirmed corporate data and prospects. Rumors are the easiest and most dangerous way to scour investors. The use of confidential information for personal gain is a criminal offense which carries a term of imprisonment of up to two years and / or a fine of up to five thousand pounds.
2.5 Products traded on the CSE

2.5.1 Shares
Shares are the ownership of a company. The shares are the most traded securities in the CSE. It is the unit that divides a company’s share capital, giving its holder the right to vote and the right to participate in the profits resulting from its operations. They also participate proportionately in new capital issues (rights issues).

A common stock is the most common type of stock and includes all the basic rights of a shareholder, such as the right to participate in profits, the issue of new shares, the proceeds of liquidation, and the right to vote in the general meeting of the company and to participate in its management.

The preference share simply offers an advantage over the holders of dividends, dividend and receipt of the liquidation proceeds in the event of the dissolution of the business, but usually lacks the right to vote and participate in the management of the business.

The nominal value of the share is calculated on the first issue of the shares, dividing the value of the share capital of the company by the number of shares it originally issued. The nominal value may change after a decision of the Company’s General Meeting.

The book value of the share reflects its fair value and results by dividing the company’s equity by the number of shares in the company.

The stock market value of the stock is formed daily at the Cyprus Stock Exchange meeting through supply and demand.

2.5.2 Warrants Share warrants
are an alternative way for a company to increase its share capital. The warrant holder has the right and not the obligation to buy a specified number of shares at a predetermined price (exercise price) on specified dates until their expiration. The warrants do not provide any dividend or other income and if they are not exercised until their expiration date, they expire and lose all their value. Their trading price is directly related to the course of the stock and usually fluctuates in higher percentage margins than the stock.

2.5.3 Rights
Listed companies choose to increase their equity by issuing rights issue to existing shareholders (in proportion) at a price lower than the price traded on the CSE. The Rights are traded on the CSE for a fixed period of time.

2.5.4 Bonds or Bond Loans
It is an alternative form of lending for issuers who pledge to return to their debtors their nominal value plus a fixed or floating rate at regular intervals until their maturity. There are various types of debt securities that vary according to their repayment terms. The convertible securities additionally give the holder the right to convert them if he wishes to the shares of the company under conditions specified at the time of issue. The securities are issued by the Government, public corporations, Semi-Governmental Organizations and Local Government Organizations.

Upon maturity, the issuer of corporate securities is obliged to pay the debtors ‘claims first (return on equity plus legal interest) regardless of the level of the Company’s profits and then to satisfy the shareholders’ claims.

2.6 Shareholder Benefits
The investor sees the stock market as an alternative form of investing the money he saves in order to pursue good returns. A yield that is usually higher than that offered by other investments such as bank deposits and government bonds.

A company provides its subscribers with various benefits such as dividend, dividend, bonus issue, warrants, rights issue and more. on a specific date (record day). The securities are traded without the benefits provided eight days before the above date, in accordance with the trading rules of the Stock Exchange. A title when negotiating with a benefit is used with the prefix “cum” while without the relevant benefit the prefix “ex” is used. That is to say, if it is a dividend, the securities traded on the dividend will be referred to as “cum-dividend” while if it is traded without dividends it will be referred to as “ex-dividend”.

2.7 Classification of Securities and Price Indicators
Securities listed on the Stock Exchange are classified as equity markets, for equity or one of the securities markets, for bonds or other similar securities, or for the purchase of UCITS Shares for UCITS shares.

The increase or decrease in the price of the securities is reflected in the price index of the Cyprus Stock Exchange. The CSE daily prepares the General Price Index as well as the sub-sectoral indices, which are calculated based on the average closing price of all listed shares.

The Cyprus Stock Exchange Council, with the agreement of the Hellenic Capital Market Commission, decided to separate the Public Companies, based on specific conditions and criteria, into the following markets:

1. Main Market
2. Parallel Market
3. Alternative Market
4. Investments Market
5. Major Projects
Market 6. Maritime Market
7. Special Category Market

The FTSE / CySE 20 index is based on FTSE’s internationally accepted standards and consists of the 20 most traded stocks. equities with the largest capitalization and widespread dispersion of their shares.

2.8 Common Platform of the Cyprus Stock Exchange (CSE) and the Athens Exchange (ATHEX)
The Cyprus Stock Exchange (CSE), in cooperation with the Athens Stock Exchange (ATHEX), has launched the creation of the Common Platform. Within the framework of the operation of the Common Platform, the two Stock Exchanges fully maintain their independence and autonomy, inter alia performing the cash settlement and clearing procedures of all transactions that will be executed at the securities listed therein. For the operation of the Common Platform, the CSE will use the electronic systems currently used by the ATHEX for trading in securities (OASIS) and for Clearing, Cash Settlement and Central Depository / Registry (SAT – Intangible Securities System).

The Common Platform is under the supervision of the Securities and Exchange Commission. The Shares, Stock and Stock Options will be traded in Euros, while all Bonds (Corporate and Government) and Treasury Bills will be traded in Cyprus Pounds, until Cyprus’s eventual accession to the Eurozone.

The following types of securities are traded in the CSE Securities Markets:
a) Shares
b) Warrants
c) Rights
d) Fixed Income Securities (Corporate and Government Bonds) )

2.9 Trading on the CSE
Transactions in listed securities on the CSE are conducted in cash unless they are covered by a margin account. All the securities are traded today through the Remote Connection system of the CSE electronic trading system, ie the orders are transferred from the CIF offices through the electronic system.

The opening hours of the Common Platform will be as follows:
Main Market from 10:00 to 17:00
Parallel, Alternative and Investment Market from 11:00 to 14:30
Special Category from 11:15 to 13:30

2.10 Variance Limit
The daily fluctuation limit is defined as the range in which a securities may be traded during a stock exchange.

The daily maximum price fluctuation of the values ​​of the Main Market, the Parallel Market, the Alternative Market, the Market of Investment Organizations outside the Stock and Bonds Market and the Bond Market will be scaled as follows:
a) price fluctuation will be + 10% or -10% of the starting value of the value (reference value).
(b) As long as the buy or sell ceilings remain unchanged at the best buy or sell prices for fifteen (15) consecutive minutes of the hour, the daily fluctuation limit is extended to + 20% or -20% respectively. startup.

The securities traded in the Special Category will have a daily fluctuation limit of + 20% – 20% on the starting price, which is constant throughout the session.

The trading price of the warrants and the rights varies indefinitely unless the CSE Council decides otherwise.

In the case of securities whose trading price is or falls below € 0.10 their daily variation will be possible up to ± 100%. The variation in the fluctuation limit as above as well as the fluctuation threshold for values ​​which rise above € 0.10 will occur as long as their price stabilizes above or below € 0.10, as the case may be, within within a reasonable time.

2.11 Investment Risk
Investments in the Stock Exchange contain risks that every investor must be aware of. The Cyprus Securities and Exchange Commission constantly warns investors that they need to manage their investment securities wisely and prudently because their returns are uncertain. The stock market is a place that offers opportunities for profitable investment and savings management but it is not a gaming space and it is not offered for easy enrichment. Price fluctuations are influenced by many factors and investors need to protect themselves from rumors and bad consultants.

The prudent behavior of investors is in their interest and in the interests of the capital market and the economy.

Warning: “Investment is not a game.”

2.12 Settlement and Settlement of Transactions
The Central Registry / Depositary of the Cyprus Stock Exchange is the central body responsible for the clearing of securities transactions, that is, the settlement of obligations of the parties to the securities transactions.

According to the regulations of the Cyprus Stock Exchange, the members of the CSE must complete each brokerage transaction within three days of the transaction being completed (T + 3) at the latest. The transfer of securities to investors takes place simultaneously with the transfer of money to the respective Members (at T + 3 time). Also when registering the sale order, the system checks whether the investor owns the securities it intends to sell.

3. RELEASE AND CENTRAL REGISTRATION

3.1 Central Registry / Repository
The Stock Exchange has assumed responsibility for maintaining a Central Register, which contains all the information of the beneficiaries on the values ​​of the listed companies, based on the Companies Law or their Law of incorporation. With the operation of the Central Registry, the CSE gradually received all the registries from the Registrars of the listed companies, assuming the responsibility of keeping them, by registering any changes made for each listed value, whether it is after a transaction on the CSE, or it takes place outside. of the Stock Exchange. At the same time, the Stock Exchange undertakes the procedures required for clearing and terminating the brokerage transactions by conducting the required updating of the registries and the transfer of the financial consideration for the transactions to the sellers’ brokers. The Stock Exchange also offers various registry-related or registry-related services to both the Companies that maintain the registers, as well as to Investors and the general public.

Through the operation of the Central Registry and the exploitation of the possibilities offered by electronic technology today, significant changes have been made to the way in which securities registries are maintained, in the clearing procedures of brokerage transactions, and generally in the processes of transfer or burden of listed securities. benefits of transaction security, cost reduction and better investor service.

Upon the listing of the registries by the Stock Exchange, certificates to date confirming that a person is the holder of a number of securities are no longer issued and lose their relevance. The investor is aware or proves that a number of its securities belong to the Central Registry and the various notices or statements of his account that he occasionally receives from the Stock Exchange.

From the date of the listing of a listed company by the Stock Exchange, the Central Register maintained by the Stock Exchange shall maintain the position of the register which the Company was required to maintain. A transfer, pledge, or other charge, or deed of value in order to be completed, requires registration with the Central Registry.

Entries in the Central Depository – Central Registry are confidential and the Stock Exchange as provided by the Law has a duty of confidentiality and is obliged not to disclose them to anyone except to the extent that their notification is required by law or court order.

3.2 Benefits of Dematerialization
Upon the listing of stocks, certificates or securities that confirm that a person is the holder of a certain number of securities are no longer issued and lose their relevance. The investor is aware of or proves the fact that the number of his securities belongs, citing the Central Registry, and is informed by the various notices or statements of his account, which he occasionally receives from the Stock Exchange.

The demobilization has given multiple benefits to investors but also to CSE-listed companies, making the CSE more effective as it has achieved:

more efficient, faster and safer clearing of stocks
,
faster shareholder lending. account investors’ values during the
execution of transactions,
the possibility of complete renovation and better service for investors
to reduce the cost of storage of securities

4. What should know investors to enable them to carry out n transactions in the CSE
In order to be able to conduct any stock exchange on the CSE you should have the following in mind:

The investor should apply to the Operator (who must be a CSE Member or CSE Approved Custodian) in order to create an Investor Share.

The Investor Unit holds the Securities Account and the Special Account.
The Investor Share includes investor identification information such as Name, ID, etc. and general information such as address, telephone number etc.
The Investor Share corresponds to the CSE Deposit Account existing in the CSE Central Depository / Registry (CSE) system.
Investors who already have a Deposit Account in the existing CAM system will not be required to open an Investor Share in the new system.
The investor may not hold more than one Share in the CAD.
For each Share, the System is assigned an Investor Share Code (KDE), which is unique and corresponds to the Repository Account number applicable to the existing CSE CAM system.

4.1 Securities Account
• Includes all securities held by the investor which he may distribute for management purposes to one or more operators. It is therefore the sum of the Operator accounts (corresponding to the existing trading accounts) belonging to the Investor Share. Each securities account is for a specific operator (CSE Member or Custodian) who can move it.
• Transfer of securities between operator accounts belonging to the same Share is permitted, with the consent of the operator from whom the transfer is made.

4.2 Special Account
• is created simultaneously with the creation of an Investor Share and includes securities that are under the exclusive control of the CSE (corresponds to the existing ‘Global Account’)
; . Such cases include, for example, transactions between members of the same family, a gift or other transaction, which does not involve a financial contribution, etc.

4.3 Operator Account
• also called Statement of Use
• created by the Operator, upon the order of the investor
• automatically opens if the Operator opens and Investor Share
• is the corresponding trading account currently in place in the CAM, investors who have already opened trading accounts with one or more Members will not be required to open an Operator Account in the new system
• if the Operator is Member must notify KAM when creating the Operator Account and the OASE Code assigned to him / her.
• The CSE may not, without the consent of the Operator, remove, charge or in any way bind any securities entered in this Account, unless expressly provided in the Regulations.

4.4 How to Make a Statement of Use in an Investor Share?

• The investor comes to the operator presenting a request for a Statement of Use to a specific operator.
• The Statement of Use is made by the Operator, provided that the Investor has been notified by the Investor of the Investor Share Code (KAME).

The Operator is a Member of the CSE or Custodian, approved by the CSE.

The implementation of the Common Platform, based on international practices, introduces the institution of the Custodian. The Custodian has an active role in the settlement process of transactions performed for his clients, as well as the opening of accounts on their behalf. The Custodian under the Law may be Credit Institutions, or Investment Firms provided they obtain upon request the approval of the CSE Council.

4.5 Investor Notification
The investor may be informed of the entries / movements of his / her accounts as follows:
(a) by the respective Operator, for entries and movements in an Operator’s account.
(b) from the CSE, for transactions and entries either in the Special Account or in its securities account.
(c) the CSE’s special electronic system via the Internet, where investors who wish can register.

5. COMPANIES PROVIDING INVESTMENT SERVICES (KIF)
According to the Law (Law 148 (I) / 2002) on Investment Services Companies (Investment Firms) Law of 2002 to 2005, the Investment Services Company (LTD). Y) means a natural or legal person who operates under a license issued by the Supervisory Authority and professionally provides one or more investment services to third parties, and includes banks that provide investment services in accordance with this Law. Cypriot Investment Services Companies are companies established in Cyprus and licensed by the Cyprus Securities and Exchange Commission

5.1 Investment Services

Investment services that an OP may provide. Yeah. are the following:

1. (i) the receipt and transmission on behalf of third parties of orders to
execute transactions for one or more of the financial instruments; (ii) the execution of the orders referred to in paragraph (i) on behalf of third parties.

2. Trading and trading for own account financial instruments.

3. The management of client investment portfolios under the latter’s mandate, provided that the portfolios include one or more financial instruments.

4. Undertaking or issuing one or more of the financial instruments, such as securities and shares of collective investment undertakings, money market securities, etc.

Investment Services Companies and banks that have become members of the CSE Securities Market are the only companies that have the ability to directly transfer purchase and sell orders on the CSE’s online trading system.

The CSE members as well as the Investment Firms are licensed by the Hellenic Capital Market Commission, if they are based in Cyprus and if they meet specific criteria regarding their equipment, organization, staffing. and their capital adequacy, among others, while the banks are granted by the Central Bank of Cyprus. Their acceptance as members of the CSE Securities Market is done by the CSE Council, as long as they meet specific criteria for eg. their participation in the Guarantee Fund, the appointment of a stockbroker, etc.

The members of the CSE Securities Market. may conduct transactions through their stock brokers, who are certified as to their adequacy by examinations conducted by the Capital Market Commission.

Investment Firms in addition to trading, it can also provide investment advice on investing in brokerage products, maintain its client securities, manage its client portfolio consisting of cash, stocks and deposit its clients’ bank accounts on their behalf, as well as to provide any principal and ancillary investment services (as provided by its operating license).

5.2 What do investors need to know before investing in securities?

Before investing in equity it is very important to prioritize your needs and consider the following:

The capital you can invest.
Equity Capital is Prudent to Savings It is not prudent to invest in equity that comes from borrowing.

Time to invest capital
It is not wise to invest equity in stocks that will soon be used to repay commitments. It is preferable for the investor to invest in the medium or long term. Daily trading is not considered an investment.

Return on Investment
Determine your investment expectations. You are looking to increase the value of your investment or to earn income by paying dividends or both.

Portfolio Scatter
The diversification of the portfolio, that is, the selection of stocks from different sectors, with different characteristics, is a prerequisite for protecting the investor funds from the sharp fluctuations of the market and achieving higher returns. Holding different shares in a portfolio minimizes the risks involved in investing in each individual share separately. With a diversified portfolio, in the event of a fall in prices for one or more stocks, the risk is mitigated, since the stock prices are likely to decline or rise at the same time.

Carefully choose the brokerage firm (CIF) through which you will invest and ask in advance for the services it may offer.

And most importantly,
Determine the investment risk you are available to run.

The value of shares and dividends can go down as well as up! However, some stocks may be less risky than others. You can also reduce investment risk by diversifying the portfolio into different equities and different sectors, portfolio diversification is a smart and right way to achieve lower risk and better overall portfolio performance.

Attention: “Think Before Investing.”

5.3 How Investors Can Invest in the CSE

Investors must do the following in order to trade, that is, to buy or sell shares or bonds of companies listed and traded on the Stock Exchange:

1. To choose a member of the CSE Securities Market ( CIF) through which the execution of its orders for the purchase and sale of shares.
2. Sign with the aforementioned member a contract which contains the general terms of the investor’s cooperation with the member of the CSE Securities Market, as well as the investor’s details (name, address, ID card). and profession). By signing the contract, the investor acquires a client code of the CSE Securities Market member.
3. The CSE Securities Market Member then arranges for the investor to apply to the Central Registry / Depository so that the investor obtains an Investor Share.

Caution: Invest wisely, investing in equities does not provide a guaranteed return, not even guaranteeing the amount initially paid.

6. UCITS (Collective Investment Securities Organizations)
UCITS are a category of open-ended collective investment portfolios whose sole purpose is to invest funds raised by investors in securities and liquid financial assets. In simple terms, UCITS is a common asset that is formed by funds raised by investors. This common property is managed by a Management Company and deposited with a Custodian. The assets (assets) of a UCITS are divided into equal shares which are indivisible by the shareholders according to the shares held by each one. Shareholders are involved in both the profits, income and losses and expenses incurred in the management and investment of the UCITS assets.

6.1 UCITS legislation
The Open Forms of Collective Investment Securities Organizations (UCITS) and Related Matters Act 2004 (N200 (I) / 2004) as applicable from time to time, constitute the law governing the operation of the UCITS. The preparation of this Act has been based on the European UCITS Directive which regulates the operation of UCITS for the Member States of the European Union.

6.2 Domestic UCITS
1. Domestic UCITS is a Cyprus-based UCITS licensed to set up and operate by the Cyprus Securities and Exchange Commission pursuant to the provisions of Law 200 (I) / 2004.

2. A UCITS national may take the contractual form of the Fund or the statutory form of a Variable Capital Investment Company.

3. The Fund has no legal personality and its shareholders are legally and externally represented by the Fund Management Company in respect of the legal relations between the management of the Fund and their rights over its assets.

4. The Variable Capital Investment Company is a company incorporated in accordance with the provisions of Law 200 (I) / 2004 and the Companies Law.

5. The Management Company is a company incorporated in accordance with the Companies Law, with the principal purpose of managing one or more UCITS.

6.3 Foreign UCITS
1. Foreign UCITS are divided into:

(a) A UCITS established in a Member State which has adopted Directive 85/611 / EEC and is authorized in one Member State shall have a “passport” allowing them, after notification, to offer their shares in the Republic.

(b) UCITS established in a Member State that do not adopt European Directive 85/611 / EEC or a UCITS established in a third country do not have a “passport” and the disposal of their shares in the Republic requires the prior authorization of the Securities and Exchange Commission.

2. A foreign UCITS may take the form of a Mutual Fund or a Unit Trust.

6.4 Net value, sale price and UCITS share acquisition price
1. The net value of a UCITS share shall be calculated on the basis of the value of the UCITS ‘assets (assets), plus any of its liabilities by the number of UCITS current shares. The UCITS ‘obligations include but are not limited to the management company’s remuneration, the Custodian’s remuneration and other expenses and expenses relating to the management and operation of a UCITS.

2. The price at which the investor will buy a UCITS share is the share disposal price (selling price = net share value + percentage commission).
3. The price at which the investor will redeem its shares is the share redemption price (redemption price = UCITS share net value – redemption commission rate).

4. The disposal price and the redemption price of a UCITS share may, respectively, exceed or be less than the net share value at the rate of commission and redemption, respectively, in accordance with the UCITS Regulations or Articles of Incorporation.

6.5 UCITS Agents
As UCITS Agents may act only banks, investment firms, and affiliated credit institutions.

6.6 How Investors Can Get UCITS Shares
1. The acquisition of UCITS shares requires:

(a) Written request to the Management Company or its designated Shareholder whereby the Management Company or its Representative is required to deliver to the person concerned the full Prospectus (to which the Fund’s Regulation or Annex is attached) Founding and Statutory Document in the case of a Variable Capital Investment Company as well as the Simplified Prospectus) and the most recent UCITS report.

(b) Written acceptance of the Regulations in respect of the Fund or of the Founding and Statutory Documents in respect of a Variable Capital Investment Company

(c) Full payment to the Custodian of the amount that the investor wishes to invest in the UCITS, which may consist of cash, securities, or liquid financial assets.

2. Acquisition of units is effective upon their registration in the Register of Shareholders by the Management Company and requires full payment to the Depositary of their value.

3. In addition to the Custodian, the amount the investor wishes to invest may also be paid to the Management Company which is required to deposit the amount with the Custodian within the next business day.

6.7 How Investors Can Redeem UCITS Shares
1. The shareholder shall be entitled at any time to request, through the filing of a takeover application with the Management Company or the designated Representative of the Management Company, the partial or total acquisition of the shares he holds.

2. Based on the UCITS share buyback price and the number of shares the investor wishes to redeem, the investor will receive the appropriate amount of money.

3. The acquisition of UCITS shares shall be recorded in the UCITS Register of Shareholders.

4. Only UCITS Representatives may act as banks, investment firms, and cooperative credit institutions.

6.8 What Investors Need to Know Before Investing in UCITS Shares
1. The capital you have the opportunity to invest.

2. The capital for investing in UCITS shares shall be prudent from savings. It is not prudent to invest in UCITS shares of borrowed capital.

3. The amount of time the capital will be invested.

It is not prudent to invest capital in UCITS shares that will soon be used to repay commitments. It is preferable for the investor to invest in the medium or long term.

4. Determine your investment expectations.
Are you looking forward to increasing the value of your investment or getting income through paying dividends or both?

5. Determine the investment risk you are available to run and select that UCITS that suits your plans, needs and financial opportunities.

6. Participation in a UCITS is not inexpensive. You may be charged an entrance or an exit commission both at and when you leave. Also, note that the assets of a UCITS are subject to various costs related to the management of the UCITS (Management Company fee, Custodian fee, correspondence fee, publications, etc.).

7. Before becoming a shareholder in a UCITS you should carefully study, except for the brochures they will give you and the mandatory forms that your Management Company or its designated Representative must provide. These forms are the UCITS Regulation (regarding the Fund), the UCITS Prospectus (to which the UCITS Regulation may be annexed), the UCITS Statutes (in the case of the Variable Capital Investment Company and the latter) and the UCITS Annual Report. This study will give you a complete overview of the UCITS, as well as your rights and obligations as a shareholder.

8. Carefully compare UCITS yields taking into account that UCITS yields should be compared between UCITS having a similar investment type (eg benchmarking of UCITS). In addition, when comparing UCITS returns, account should be taken of the percentage of fees that each UCITS may charge on the net value of the UCITS share.

Caution: Always remember that:

“The investment in UCITS is not guaranteed return and past performance does not guarantee future results.”

“The value of investments and a UCITS revenues may go down as well as up and you may investor not recover the original amount of his investment. ”

“The approval of the UCITS by the Cyprus Securities and Exchange Commission does not imply any guarantee as to the future performance of the UCITS.”