Regulation and License

Regulation and License

Demo is the social investing platform that empowers users to grow their knowledge and wealth as part of a global community of investors. As a multi-asset broker with millions of users around the world, Demo is regulated in multiple jurisdictions.

Europe

Demo is a trading name of Arche Associes SA, and authorized by CONSOB, registered in the List of investment Firms authorised in other EU states without branches in Italy. with license number 3753. Registered in Luxembourg. Registered office: 37 A, Avenue JF Kennedy L 1855 Luxembourg.

Australia

Demo is a trading name of Arche Finance Pty Ltd is regulated by the Australian Securities & Investments Commission (“ASIC”) for the provision of financial services and products. Australian Financial Services Licence number: 671 984 008. Registered Office: Tweed heads NSW 2485

Arche Finance Pty Ltd, is licensed to act as a Responsible Entity under Chapter 5C of the Corporation Act 2001. When executing transactions, Arche Finance Pty Ltd will use another executing broker, including Demo Europe or a non-affiliated third party.

Regulatory Disclosures

Client Categorization

The Markets in Financial Instruments Directive (MiFID) requires the categorization of clients as Retail Clients, Professional Clients or Eligible Counter Parties. Demo categorize all clients as Retail Clients when opening a trading account, which have the highest level of protection (such as eligibility to the Investor Compensation Fund, Best Execution, and Safeguarding Clients Assets etc). Clients are allowed to request to be reclassified, in writing to Demo, as applicable, who may recategorize you according to the specifications, conditions, and procedures of MiFID. “Retail Client” is a client who is not a professional client or an eligible counter party. Eligible Counter party is a professional client or legal entity who provides investment services that involve the reception and transmission or the execution of orders. Clients under this category have the lowest level of protection. Professional Client is a client who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that they incur and must comply with the following criteria: Α. Categories of clients who may be considered to be professionals: The following shall be regarded as professionals in relation to all investment services and activities and financial instruments:

1. Entities which are required to be authorized or regulated to operate in the financial markets. The list below should be understood as including all authorized entities carrying out the characteristic activities of the entities mentioned: entities authorized by a member state under a European Community Directive; entities authorized or regulated by a member state without reference to such Directive; and entities authorized or regulated by a non-Member State
   1. Credit institutions;
   2. Registered Investment Firms;
   3. Other authorized or regulated financial institutions;
   4. Insurance undertakings;
   5. Collective investment schemes and management companies of such schemes;
   6. Pension funds and management companies of such funds;
   7. Commodity and commodity derivatives dealers;
   8. Other institutional investors.
   9. Locals
2. Large undertakings meeting two of the following size requirements, on a proportional basis:
   1. balance sheet total at least: 20.000.000 euro
   2. net turnover at least: 40.000.000 euro
   3. own funds at least 2.000.000 euro
3. National and regional governments, public bodies that manage public debt, central banks, international and supranational institutions such as the World Bank, the Internal Monetary Fund, the European Central Bank, the European Investment Bank and other similar international organizations.
4. Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitization of assets or other financing transactions. They must however be allowed to request non professional treatment and Demo, as applicable, may agree to provide a higher level of protection.
5. It is the responsibility of the client, considered to be a professional client, to ask for a higher level of protection when it deems it is unable to properly assess or manage the risks involved. This higher level of protection will be provided when a client who is considered to be a professional enters into a written agreement with Demo, as applicable, to the effect that it shall not be treated as a professional for the purposes of the applicable conduct of business regime.

Β. Clients who may be treated as professionals on request: Clients other than those mentioned above, including public sector bodies and private individual investors, may also be allowed to waive some of the protections afforded by the conduct of business rules of Demo, as applicable. Both Demo are therefore allowed to treat any of the above clients as professionals provided the relevant criteria and procedures are fulfilled. Such as that the client is capable of making his own investment decisions and understanding the risks involved (fitness test)