Saga Capital Investment Bank Iceland

Starting business with Saga Capital

On 1 November 2007 a new comprehensive legislation on securities transactions came into effect, the purpose of which is to coordinate legislation on investment services in the whole European Economic Area and provide investors with greater protection. All those who intend to trade in securities are required to accept the terms of the relevant financial institution and fill out several documents before the transaction can take place. In addition, financial institutions are now required to categorize their clients based on their knowledge and experience.

In order to fulfill the legal requirements, Saga Capital clients are required to complete a few tasks before trading can begin.

• First of all, clients are required to read and confirm Saga Capital's General Terms of Business (see document 1 below) and, if applicable, sign a power of attorney for the party who will act as contact with Saga Capital and represent the client in any business trades.
• Secondly, the clients need to fill out necessary KYC (know your customer) forms regarding anti money laundering and anti terrorist financing (different forms depending on whether the client is an individual, legal entity, Icelandic or non-Icelandic, see documents 2, 3, 4 and 5) and hand in the data required.
• Last but not least, Saga Capital is required to categorize its clients as retail investors, professional investors or eligible counterparties Those who have been categorized as retail or professional investors are required to read and confirm Saga Capital's policy on best execution which is Saga Capital's protocol on how Saga Capital intends to ensure its clients with the most favorable trade results (document 9). All investors are then required to sign a consent permitting Saga Capital's traders to execute trades outside of regulated markets (different forms depending on whether the client is an individual, legal entity, Icelandic or non-Icelandic, see documents 7 and 8). Further information on client categorization can be found in document 6.

Additional guidelines on how to start trading at Saga Capital can be found in the check list below (document 13). For further information and assistance please contact Rut Jónsdóttir at Saga Capital, tel 545-2623 or e-mail rut hjá sagacapital.is.

Information and forms