Did you know?
From the Pathfinder
Business concept
How an app can become an activity that requires permission.
INTERACTIVE EXAMPLE / 04
Appropriateness assessment · margin-financed shares
This path considers a share purchase partly funded by credit from the investment firm involved. Although the share itself may be familiar, borrowing changes the scale of losses, collateral requirements and potential repayment obligations. The product and financing are therefore explained together.
Scenario: you buy shares worth €1,000, using €500 of your own funds and a €500 loan granted by the investment firm involved. The shares secure the loan. Calculation questions initially exclude interest and fees. The credit agreement and collateral limits vary by provider.
Legal basis & methodology
MiFID II · Art. 25(3)–(4) · ESMA35-43-3006
A securities-backed loan is not a CFD position. This scenario assumes no CFD negative balance protection for the loan. Debt can remain after collateral is sold; interest, collateral limits and enforcement rights depend on the agreement.
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.