Financial Services Guide Issuer: Lumiere Securities Pty Limited, ABN 20 169 151 740, trading as Rubix FX Address: Level 9, 16 O Connell Street Sydney NSW 2000, Australia Website: www.rubixfx.com Phone: +61 2 9099 4288 Authorised Representative Number: 471690 Licensee: Finsa Pty Ltd, ACN 158 065 635, AFSL 422661 Preparation date: 27 January 2015 Version: 1 What is a Financial Services Guide? This Financial Services Guide (FSG) is an important document to help you understand and decide if you wish to use the financial services we are able to offer you. It provides you with information about Lumiere Securities Pty Ltd (Rubix FX, us, our, we) and the services we provide. Its purpose is to educate you, before we provide a financial service, on matters including: who we are and how we can be contacted; what services and products we are authorised to provide to you; how we (and any other relevant parties) are paid; and who to contact if you have a complaint. Before we issue any particular financial products to you, we will provide you with a Product Disclosure Statement (PDS). The PDS contains information about the product to assist you in making an informed decision about that product. It will outline relevant terms, significant risks (where such exist), and fees and charges associated with the product. We occasionally provide general advice regarding the financial markets or our services. If we provide you with general advice, it may not be appropriate to your needs, financial situation or objectives, and you should consider your circumstances before choosing to proceed with using our products. Additionally, you should obtain and read our PDS before making a decision. We have arrangements in place to maintain adequate professional indemnity insurance as required by the Corporations Act 2001. This insurance provides cover for claims made against us and our representatives / employees including claims in relation to the conduct of representatives/employees who no longer work for us but who did so at the time of the relevant conduct. Who will be providing the Financial Services to you? Rubix FX is an authorised representative of Finsa Pty ACN 158 065 635 AFSL 422661 (Finsa), authorised representative number 471690. Finsa is responsible for the financial services that its representatives provide to you. Finsa authorises, and is also responsible for the content and distribution of this FSG. Finsa s contact details are: Level 13 Macquarie House P 1 OF 6
167 Macquarie Street Sydney, NSW 2000 You can instruct us to provide you with our services by contacting us via our online trading platform. In the event that the online trading platform is unable to receive your instructions, you can instruct us via telephone. Our contact details are at the start of this FSG. On whose behalf are we acting when we provide our services to you? As we are the product issuer, we are acting on our own behalf when we provide the services and not on your behalf. What services and products are we authorised to provide to you? We are authorised to give general advice to both retail and wholesale clients in relation to basic deposit products, derivatives, foreign exchange contracts and securities. We are also authorised to deal in relation to those same products. This means that we can advise you (without taking into account your personal circumstances) and help you use our trading platforms. We can help you fill out the forms and undertake and complete trades and other related transactions. We are also authorised to make a market for foreign exchange and derivatives contracts. This allows us to quote market prices to you, including buy and sell prices. In providing our service, other financial issues may arise, such as how to invest money, or taxation issues. However, we are not authorised to provide advice relating to those financial issues, or any other issues except those explained above. You should seek specific advice from the appropriate professionals if these issues are relevant to you. What fees and commissions are payable to us? There are a number of costs, fees and commissions that you may be required to pay us, in order to use our services. By using or continuing to use our services, you agree that: All fees and charges received by us as described in this FSG (other than third party fees and charges) are a benefit given to us by you, in exchange for the services provided by us; You understand, consent to, authorise and direct us to charge you in this way. Type Spread Cost Description Derivative (including margin foreign exchange and Contracts-for-difference (CFD)) transactions incur costs relating to the spread, which is the difference between the bid price and offer price. The bid price is the price at which we are willing to buy the underlying asset from you and the offer price is the price at which we are willing to sell to you. Taking the example of a foreign currency trade, we buy currency on the wholesale market and sell it to you after building in a spread. We also buy currency from clients and sell it on the wholesale market after building in a spread. The price difference of this spread will depend on factors such as the size and value of the transaction and P 2 OF 6
prevailing market rates. This spread is paid by you, but is incorporated into the quoted rates and is not an additional charge or fee payable by you above those quoted rates. We typically earn a spread when you trade with us. Of course, all buying and selling is notional, because Rubix FX typically does not actually deliver the underlying instrument it offers a platform that lets you trade over underlying instruments only. Sometimes, in order to trade on our platforms, we will convert your money into, another currency, and this is an example of when physical delivery does occur. Please refer to the contract details for the exact trading spread for each product. Commission A commission may be charged to you in addition to or instead of the spread on each transaction, depending on which of our products you trade and whether you use an introducing broker. The commission applicable will be calculated in one of two ways depending on the individual Rubix FX products: a fixed amount for each transaction (e.g. 3.50 USD per contract); or an amount which is added to the existing spread (e.g. an extra 0.3 pips to the spread). Commission payable is subject to minimum Transaction Fees. Example: Assume that you want to open 2 lots of EURUSD worth 100,000 USD per lot (200,000 USD). Upon opening your position you pay 0.0035% commission which is 7 USD (200,000 USD x 0.0035%). When you close your position you pay 0.0035% commission on the closing value of the 2 lots. If the value of the lots has remained 200,000, the commission that you pay is 7 USD. Commission of 14 USD will be paid at the time that the opening transactions take place. Rollover interest rate (also known as swap rate) You may earn or pay interest, (rollover interest) by entering and holding a margined foreign exchange contract or a CFD overnight. The amount of rollover interest that you pay or receive depends on a number of factors including: the size of the open contract; the differential interest rate of the underlying instrument; and the duration of the rollover period. Rollover interest accrues if you hold your position at 17:00 EST (New York) in accordance with market convention. At 17:00 EST (New York), any open positions will be subject to rollover interest, and the cost (and its impact on your account balance) will be displayed within one hour, on your online account. Your account balance will be automatically credited or debited with overnight interest by the beginning of the next business day We may adjust interest rates at any time based on the market conditions without notice to you. Weekends and holidays Forex markets are closed on Saturdays and Sundays in their local time, so there is no rollover on these days, but interest will still be applied for those two days. To account P 3 OF 6
for that, the forex market books three days of rollover on Thursday, which makes a typical Thursday rollover three times the amount on Wednesday. There is no rollover on holidays, but an extra days worth of rollover two business days before the holiday. Typically, holiday rollover happens if any of the currencies traded has a major holiday. Rollover interest is calculated automatically at 17:00 EST (New York) and the interest is debited or credited to and from the trading account accordingly. Rollover interest rates are tripled on Wednesday in order to compensate for the upcoming weekend. So if you rollover the position from Wednesday to Thursday, then the next value date is Monday: the same rule is applied in the case of holidays: next value date is the next business day after holidays. Margin foreign exchange contracts If you hold a margin foreign exchange contract overnight you will earn interest on the currency that you notionally bought and will have to pay interest on the currency that you notionally sold. The currencies interest rates are offset against each other to determine the rollover interest rate. If the interest rate of the currency that you notionally bought is higher than the interest rate of the currency that you notionally sold, you will be paid the difference. If the interest rate is lower, you will pay the difference. Example of margin foreign exchange Rollover Interest Assume that you buy a margin foreign exchange contract over the EUR/USD currency pair and hold the position overnight. Under the contract you are notionally buying EUR with USD. The rollover interest rate is 1.5% pa, calculated and passed down to us, sometimes with a small markup, from our prime broker. As you notionally bought EUR you will be paid the rollover interest. If you had notionally bought USD you would pay the rollover interest. Example of precious metals CFD Rollover Interest Assume that you buy a CFD, for which the underlying instrument is XAUUSD, and hold the position overnight. Under the contract you are notionally buying 100 ounces of gold and selling USD. The rollover interest rate is 0.5% pa calculated and passed down to us, sometimes with a small markup, from our prime broker. As you notionally bought gold you will be paid the rollover interest. Rubix FX charges a spread on rollover interest. See spread cost above for more detail. Conversion cost We are able to accept deposits in a number of currencies, however, if you wish to deposit in a currency in which we are not able to accept deposits you may be required to convert the funds into a currency that we do accept. We accept deposits in most major currencies, however, the list of acceptable currencies does change so please contact us if you have any questions in this regard. We note that your bank will charge you for this service at the time of conversion. Alternatively, we may convert your funds by first quoting you a spot price pursuant to our Terms and Conditions. If you choose to accept our quoted prices, then the transaction will usually take place immediately upon receipt of your cleared funds. The new currency will be delivered to your Rubix FX account. We will be remunerated by P 4 OF 6
the difference between the rate at which we buy and sell to you the currency (also called the Spread Cost see above). Interest on client money Credit card and electronic payment Administrative and Transaction charges We place client moneys into our segregated funds account which is a client trust account. We are entitled to any interest earned (which if payable, is calculated daily) on positive balances in the client trust account and do not pay it on to clients. Clients must at all times keep a positive balance in their accounts. If you make a deposit in your account using a credit card or other electronic payment system, you may be charged a fee by the card or system provider at the time of the transaction, which will reduce the amount that arrives in your Rubix FX account. We do not retain any of these fees they go to the credit card or electronic payment system providers. The fee will vary depending on the credit card or payment system you use, and where possible we will include the fee information on our website. In some instances, we may reimburse to you part of these costs if, for example, we are running a special offer campaign. We do not charge administrative fees for using our services. However, depending on how you deposit funds (see Credit and electronic payments above ) or withdraw funds, third parties may charge administration and / or transaction fees. For example, if you withdraw your funds through a pre-paid MasterCard, the provider of that card will charge you administration and / or transaction fees at the time of the transaction. Third Party administration or transaction fees are your responsibility and your bank or financial institution are responsible for explaining those fees to you. An example of these fees are intermediary fees. How are our people and third parties remunerated? All of Rubix FX s employees are paid a salary. In addition to a salary, some employees may receive performancebased, discretionary bonuses. Bonuses are calculated according to a number of performance factors which may include the general performance of Rubix FX. Our shareholders will also receive a benefit based on our ongoing company performance. When you are referred by a third party to us we may pay a commission to the third party in any of the following ways: 1. a percentage of the commission paid by you to us (see commission above) when you trade contracts with us. The percentage may be up to 100% of the commission paid by you; or 2. up to 100% of the Spread Cost (see above) generated from your trading. The amount of commission paid to referrers is negotiated on an individual basis and is typically based on a sliding scale, which takes into account: 1. the number of clients referred or introduced to us; and 2. the number of contracts traded by clients introduced or referred to us. The payments are typically paid at the time the trades take place, or within a month of that time. You may request more details about the way these people or entities are remunerated within a reasonable time after receiving this document. P 5 OF 6
What should you do if you have a complaint? In the event you have a complaint, you can contact us using the contact information in this FSG and discuss your complaint. If your complaint is not satisfactorily resolved within 6 weeks, please contact our licensee by telephone or in writing: The Complaints Officer Finsa Level 13. Macquarie House 167 Macquarie Street Sydney, NSW 2000 We will try and resolve your complaint quickly, fairly and within prescribed time frames. If the complaint cannot be resolved to your satisfaction you have the right to refer the matter to the Financial Ombudsman Service (FOS) which is an external complaints service, of which our licensee is a member: 30641. You can contact the FOS on 1300 780 808 (if in Australia) or +613 9613 7366 (if outside Australia) or in writing at GPO Box 3, Melbourne, Victoria 3001, Australia. You can also contact the FOS through their website: www.fos.org.au. Personal Information We record inbound and outbound telephone conversations to the Rubix FX office for compliance and training purposes. We are committed to ensuring the confidentiality and security of the personal information of our clients, and are also committed to complying with both the Privacy Act 1988 (Cth) and the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). The Rubix FX Privacy Policy detailing our handling of personal information is available upon request. You may request access to information held about you by contacting us on the contact details listed above. If you do not provide some or all of the information requested on our application form, we may not be able to accept your application to open an account or otherwise provide you with our services. We may use information received from our clients to send marketing material to our clients from time to time unless you elect not to receive it. We will not provide your personal information to any third party other than in accordance with the Rubix FX Privacy Policy. Please retain this FSG for your reference and any future dealings with us. We may also add documents at a later date which will form part of this FSG, and should be read together with it. They will include the word FSG in the heading. P 6 OF 6