Personal Broker

How does it work?

Investing takes place on the client's standard trading account. The client expresses consent to the proposed transaction by submitting an instruction in the standard way (most often by telephone) based on the prior recommendation of their "Personal Broker". The client has at their disposal a specially modified e-Broker application, which allows them to view their investment portfolio at any time but does not allow them to submit electronic orders. Thus, the client does not have to worry about accidentally executing an unwanted transaction themselves. The client regularly receives a statement from their account, including a clear chart of their portfolio's appreciation and a brief description of all executed transactions for the period since the last statement.

Appreciate your finances - information leaflet

Conditions and procedure for obtaining the service

• The minimum value of the client's portfolio for the provision of "Personal Broker" services is 250 thousand EUR.
• The price of the service is 20% of the client's profit. The exact calculation is as follows:
  Valuation of shares and account balances in EUR according to stock exchange and currency rates as of December 31 of the given year
  - (minus) valuation of shares and account balances in EUR according to stock exchange and currency rates as of January 1 of the given year
  - (minus) cash deposits and securities inserted into the portfolio during the year valued in EUR according to stock exchange and currency rates on the day of deposit
  + (plus) cash withdrawals including paid dividends and securities removed from the portfolio during the year valued in EUR according to stock exchange and currency rates on the day of withdrawal.
  Standard transaction fees are deducted continuously from the client's accounts, thus reducing the base for the reward from the appreciation of the client's portfolio. During the year, Fio banka may calculate an advance payment according to the above calculation and deduct it from the client's account.
• Before arranging the service, a meeting will take place between the client and their future "Personal Broker" (can be arranged at any branch) in order to establish personal contact between the broker and the client and to determine an investment strategy according to the client's individual needs.
• You can arrange a meeting by phone at +420 224 346 493 or in person through Fio banka branches.

 

Notice for investors

Investing in investment instruments is risky. The return of the originally invested amount is not guaranteed.

Positive and negative target markets

An investor who is a client of Fio banka and wants to invest within the Personal Broker service is obliged to fill in an investment questionnaire before making an investment, based on which Fio banka will determine the suitability of this service for the given client and also evaluate whether the given client is in a positive or negative target market in relation to the investment instruments for which investment advice may be provided to the client within the Personal Broker service.

 

Client categorization in terms of the target market is determined based on the following criteria:

• type of customers for whom the product is intended
• knowledge and experience
• financial situation with a focus on the ability to bear losses
• risk tolerance and compatibility of the product's risk-return profile with the target market
• customers' objectives and needs

 

Within the Personal Broker service, the bank has identified two types of investors:

PB – highly dynamic investor:

• The client has sufficient knowledge of the basic principles of capital market functioning and sufficiently understands the features and characteristics of the recommended types of investment instruments and the associated risks, is familiar with the behavior or development of relevant indicators and the financial market. The client has prior experience in trading shares and/or ETFs, or their lack of experience is compensated by extensive knowledge of these instruments and the financial market.

The investor is sufficiently aware of all investment risks, has sufficient financial resources (in the form of assets and/or in the form of a sufficient surplus of income after deducting expenses) for investing within the PB service. The investor will not need the invested funds to provide for basic life needs for the planned duration of the investment; a drop in the value of the invested amount would not mean a drop in their standard of living.

The client has a high risk tolerance, is willing to bear a 100% loss of the investment value or a loss exceeding the value of the invested amount. The client has a medium to long-term investment horizon (or a short-term horizon, but only if the client has already been using the PB service for a certain specified period), expects above-average investment returns (according to the binding investment strategy).

The bank has classified investors included in this category into the positive target market in relation to the following types of investment instruments, for which investment advice may be provided to clients:

• low, medium, and high-risk shares traded on stock markets in the Czech Republic, Germany, and the USA, shares traded on OTC markets
• low, medium, and high-risk ETPs traded on markets in the Czech Republic, Germany, and the USA (including leveraged ETPs)
• bonds (including unrated corporate bonds)
• mutual fund units (with a risk level of 1 - 7)
• certificates

 

PB – medium dynamic investor:

• The client has sufficient knowledge of the basic principles of capital market functioning and sufficiently understands the features and characteristics of the recommended types of investment instruments and the associated risks, is familiar with the behavior or development of relevant indicators and the financial market. The client has prior experience in trading shares and/or ETFs, or their lack of experience is compensated by extensive knowledge of these instruments and the financial market.

The investor is sufficiently aware of all investment risks, has sufficient financial resources (in the form of assets and/or in the form of a sufficient surplus of income after deducting expenses) for investing within the PB service. The investor will not need the invested funds to provide for basic life needs for the planned duration of the investment; a drop in the value of the invested amount would not mean a drop in their standard of living.

The client has a high risk tolerance, is willing to bear a 100% loss of the investment value or a loss exceeding the value of the invested amount. The client has a medium to long-term investment horizon (or a short-term horizon, but only if the client has already been using the PB service for a certain specified period), expects slightly above-average investment returns (according to the binding investment strategy).

The bank has classified investors included in this category into the positive target market in relation to the following types of investment instruments, for which investment advice may be provided to clients:

• low, medium, and high-risk shares traded on stock markets in the Czech Republic, Germany, and the USA, shares traded on OTC markets
• low, medium, and high-risk ETPs traded on markets in the Czech Republic, Germany, and the USA (excluding leveraged ETPs)
• bonds (including corporate bonds)
• mutual fund units (with a risk level of 1 - 7)

 

This service is provided by Fio banka, a.s., ID 61858374, V Celnici 1028/10, 117 21 Prague 1, registered in the Commercial Register maintained by the Municipal Court in Prague, file no. B, insert 2704.