Regulations
Key Information Document (KID)
As of 1 January 2023, the Key Investor Information Document (KIID) previously required for UCITS funds has been replaced by the Key Information Document (KID) under the PRIIPs Regulation (EU 1286/2014).
The KID provides standardised, concise information on:
- The nature and objectives of the investment product
- The associated risks and potential losses
- Performance scenarios
- Costs and charges
This helps investors make better-informed decisions and compare investment products more easily. For all applicable investment products available via LYNX, the KID is available before order placement.
871m
Section 871(m) of the U.S. Internal Revenue Code aims to prevent tax avoidance by non-U.S. persons using derivatives to gain exposure to U.S. equities.
Key points:
- A 30% withholding tax applies to U.S.-source dividends or dividend-equivalent payments.
- For eligible clients who submit a W-8BEN form, this rate is typically reduced to 15% under applicable tax treaties.
- The rule may apply to equity derivatives such as options, CFDs, or structured products.
Ensure your W-8BEN form is up to date to benefit from treaty-reduced rates where applicable.
Legal Entity Identifier (LEI)
A Legal Entity Identifier (LEI) is a 20-character alphanumeric code that uniquely identifies legal entities participating in financial markets.
Without a valid LEI, you may not be permitted to trade in specific instruments.
Required for legal entities trading in certain financial instruments, such as derivatives.
You can request an LEI through our partner Interactive Brokers (IB).
EMIR
Under the European Market Infrastructure Regulation (EMIR), counterparties trading derivatives must comply with transaction reporting requirements.
- Through our partner Interactive Brokers (IB), clients can make use of a delegated EMIR reporting service.
- This may help you fulfil your reporting obligations without submitting directly to a trade repository.
EMIR applies to both financial and certain non-financial counterparties trading derivatives within the EU.
Publicly Traded Partnerships
Sales proceeds from Publicly Traded Partnerships (PTPs) listed in the United States may be subject to a 10% withholding tax under U.S. tax rules.
It is based on IRS regulations governing the taxation of certain partnership interests.
This tax may apply to both U.S. and non-U.S. residents.
BaFin (DE)
Retail investors residing in Germany will be protected from incurring unlimited losses from trading in futures since January 1, 2023.
Disclaimer:
LYNX does not provide tax or legal advice.
The information on this page has been prepared for general informational purposes only and is not intended as legal, regulatory, or tax advice. It should not be relied upon as a substitute for professional consultation.
We strongly recommend consulting a qualified tax advisor and/or legal professional if you have questions, uncertainties, or specific situations related to your personal or business obligations.