Octagon Online Services Limited

BACKGROUND Octagon’s initial authorisation and regulated activity The Central Bank authorised Octagon as an investment firm on 6 December 2001 pursuant to the Investment Intermediaries Act 1995. The Firm’s authorisation was limited to receiving and transmitting orders on behalf of investors. On 1 November 2007 Octagon’s authorisation was transposed under the MiFID Regulations. It was and remains limited to the reception and transmission of orders. Octagon provides clients access to an online platform to deal in U.S. securities. The Firm earns commission on each trade placed by clients. Section 72 of the MiFID Regulations requires an investment firm to comply at all times with the conditions and requirements of its initial authorisation. Octagon’s authorisation is limited to the investment service specified in Schedule 1, Part 1 (1) of the MiFID Regulations: the reception and transmission of orders. Octagon is not authorised for the investment service specified in Schedule 1, Part 1(3): dealing on own account. Octagon’s initial regulatory capital requirement is €50,000 pursuant to Regulation 27(2) of the European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014)(“Capital Requirements Regulations 2014”). Regulation 26(2) of the Capital Requirements Regulations 2014 requires firms which engage in the investment service of dealing on own 2 €730,000 instead of €50,000, 14 times the amount required to be held by Octagon. 3 account to hold initial capital of €730,000. This reflects, among other things, the prudential risk involved in dealing on own account.