RTFX related questions
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- Is RTFX regulated?
- What is the MFSA?
- What is MiFID?
- Who qualifies as a retail customer under MiFID?
- Who qualifies as a professional customer under MiFID?
- What regulatory protection and guarantees do I have when trading with RTFX?
- Is RTFX regulated?
Yes. RTFX is regulated by the MFSA (Malta Financial Service Authority) and MiFID (Markets in Financial Instruments Directive).
- What is the MFSA?
The Malta Financial Services Authority (MFSA) is the single regulator for financial services activities in Malta. It regulates and supervises banks, credit and financial institutions, investment, trust and insurance business.
- What is MiFID?
The Markets in Financial Instruments Directive (MiFID) is an EU law which provides a harmonized regulatory regime for investment services across the whole region. The main objectives of MiFID are to increase competition and consumer protection in financial services.
- Who qualifies as a retail customer under MiFID?
A retail client is defined by MiFID as any client who is not a professional client or an eligible counterparty.
- Who qualifies as a professional customer under MiFID?
Professional clients are defined as entities that are required to be authorized or regulated to operate in the financial markets or large undertakings meeting two of the following size requirements on a company basis, a) balance sheet total of €20,000,000 or more, b) net turnover of €40,000,000 or more, c) own funds €2,000,000 or more. Clients not satisfying two of the above criteria are, by default, retail clients.
- What regulatory protection and guarantees do I have when trading with RTFX?
RTFX holds a broker/dealer license issued by the MFSA in March 2009. The MFSA was established by law in July 2002 and is the single regulator for financial services. The sector incorporates all financial activity including banking, investment and insurance.
RTFX Ltd is required to submit monthly reports to the MFSA to ensure full compliance with European norms in terms of capital adequacy ratios.
All client funds are segregated when not used by the clients for their trading activities. RTFX works together with UBS and HSBC, as depository banks.
In accordance with the European norms, and in order to maintain the reputation and integrity of the Maltese financial system, the MFSA adopts the same EU controls, particularly in the area of money laundering. RTFX, as a Maltese financial institution, is subject to Maltese law and all applicable regulations. Under the Maltese anti-money laundering act, which entered into force on 23 September 1994, all financial services entities must be supervised directly by the MFSA for the prevention of Money Laundering. RTFX is in compliance with this act, its regulations and controls.
