Did you know?
From the Pathfinder
Business concept
How an app can become an activity that requires permission.
INTERACTIVE EXAMPLE / 02
Appropriateness assessment · listed call option
A derivative requires a more specific assessment of knowledge and experience. This example considers only the purchase of a listed call option, paid in full with the option premium, without borrowing or writing an option. Futures, CFDs, warrants and short options have different risks and require their own assessment.
Scenario: without personal advice, you wish to buy a listed European-style call option on a share. The contract covers 100 shares and can be exercised only at expiry. Its premium is paid in full; no borrowing or additional margin is used. Fees are ignored in the numerical examples.
CFD example · Margin-financed shares
Legal basis & methodology
MiFID II · Art. 25(3)–(4) · ESMA35-43-3006
This example concerns a fully paid long call only. Its premium may be lost in full; transaction costs add to that loss. Other derivative positions can create additional payment obligations and need separate questions.
Have you explored?
Across our tools & projects
Fit & Proper · skills matrix
Prepare management profiles and collective suitability reviews.
International market entry / Germany
Is Germany your next market?
Considering a local office, a branch or a standalone authorisation in Germany? The appropriate route depends on your home jurisdiction, activities and operating model. 3RMCN combines experience from complex supervisory projects with product, technology and delivery expertise: from entry strategy and key interfaces through to operational readiness.
Discuss your plans ↗Supervisory perspectives
Familiar with several regimes
Experience in the context of CySEC (Cyprus), MFSA (Malta), FCA (United Kingdom), the European ESMA framework and MAS (Singapore). ESMA is not a national licensing authority.
International structuring
Incorporating offshore?
For incorporation in offshore jurisdictions, relevant specialists from the network can be involved. Jurisdiction, activities and regulatory obligations need to be considered for each project.