“Approved”
Central Bank of the
Republic of Azerbaijan
Resolution № 23/1
“31” August 2021

Regulation on maintaining investment services (operations) by investment companies

1. General provisions

1.1. This Regulation has been developed in accordance with Articles 30.6, 38.13 and 41.4 of the Law of the Republic of Azerbaijan on the Securities Market (hereinafter – the Law) and determine requirements for investment services (operations) by investment companies, client orders, their execution or suspension, submission of reports to clients and investment companies’ maintaining accounting of operations regarding their activities.
1.2. When providing investment services, as well as receiving and executing client orders investment companies should comply with the requirements of this Regulation, the Law and the Law of the Republic of Azerbaijan on Prevention of Legalization of Criminally Obtained Funds and other Property and the Financing of Terrorism (hereinafter – the AML/CTF Law).

2. Main definitions

2.1. Main definitions used herein bear the following meanings:
2.1.1. client assets – securities, derivatives or cash owned by a client and registered in the internal accounting system of an investment company;
2.1.2. margin account – account opened by an investment company for a client to conduct margin trade;
2.1.3. individual investor – a buyer of securities or derivative financial instruments or the person who offers to buy them including institutional investors;
2.1.4. market price – current price, securities or derivative financial instruments are traded at the stock exchange;
2.1.5. fair value – the price at which securities or derivative financial instruments can be bought and paid for on a specified date between market participants under normal conditions.
2.2. Other definitions used herein bear the meanings provided for in the Law.

3. Receiving and executing client orders

3.1. Receiving and executing client orders related to transactions with securities or derivative financial instruments as the main investment service is carried out in relation to the client who concludes a contract with the investment company and has a deposit account only with the central depository.
3.2. When providing an investment service (operation) on receiving and execution of client orders an investment company opens a client account in its internal accounting system to keep the record of client’s assets.
3.3. A client places the following orders with the investment company that provides investment services (operations) on receiving and execution of client orders related to transactions with securities or derivatives at stock exchange:
3.3.1. Competitive order – buy or sell securities or derivatives in the quantity specified in the order provided that they are not lower or higher than the price set by the client (terms of execution of a competitive order are determined in accordance with internal rules of stock exchange);
3.3.2. Non-competitive order – buy or sell securities or derivatives at the most favorable prices in the amount specified in the order.
3.4. An investment company provides an investment service (operation) on receiving and execution of client orders, except for individual investor’s portfolio management service (operation) only at the order of the client or his/her authorized representative. The term of the order should not exceed the term of the contract, if the term of the contract is more than one year, the order should be renewed at least once a year.
3.5. Except for the order made electronically or via phone, the order is drawn up in 2 copies, signed; one copy is presented to the client with a written note of the employee who has a qualification certificate on acceptance of the order and signature. Where the client is represented by an advocated person, the order includes the number and validity of the power of attorney issued to that person and the actions that may be taken.
3.6. The client’s order includes the following information:
3.6.1. full name of the investment company the order is addressed to;
3.6.2. client identification information (if the customer is an individual – his/her 1st, last, middle names; if a legal entity – legal entity’s full name, state registration certificate number);
3.6.3. the number of client’ depo account;
3.6.4. the validity period of an order;
3.6.5. type, form and state registration number of securities or derivatives;
3.6.6. the name of an issuer;
3.6.7. order direction (buy or sell);
3.6.8. the number of securities or derivatives;
3.6.9. the type of an order (competitive, non-competitive);
3.6.10. nominal and market value of securities, market value of a derivative;
3.6.11. place of execution of orders (stock exchange or OTCs);
3.6.12. the exchange rate or exchange rate corridor (in orders related to maintaining main investment services (operations)).
3.7. Client orders are recorded in investment company’s internal accounting system.
3.8. The client’s order is deemed invalid and terminated when:
3.8.1. cancelled by a customer;
3.8.2. the execution period specified in the order expires;
3.8.3. the order cannot be executed as a result of mechanical errors in the order (price, quantity error, symbol error etc.).
3.9. All client orders are kept with the investment company at least for five years (when an order is received via a phone, phone calls are kept as recorded).
3.10. When an order is received via phone and electronic facilities, the investment company should accurately identify the client. Methods used at that should be adequate to the risk rate of operations and ensure their security.
3.11. The investment company sets the best price for the client in terms of overall expenses including the price of a security or a derivative financial instrument and order related expenses.
3.12. Client order execution related expenses include:
3.12.1. payments on the place of execution of orders;
3.12.2. clearing fees;
3.12.3. third party payments attracted to the execution of the order.
3.13. Other issues related to receiving and executing client orders are regulated with Article 38 of the Law.

4. Individual investor’s portfolio management

4.1. An investment company providing portfolio management services (operations) of an individual investor related to the main investment service should also provide investment services (operations) for receiving and executing client orders related to transactions with securities or derivative financial instruments, as well as securities account management services.
4.2. Prior to signing a contract with a client on individual investor’s portfolio management an investment company should identify whether the investment service is appropriate for the client in accordance with Section 16 herein.
4.3. An investment company provides individual investor’s portfolio management via a dedicated account of a client opened with the central depository.
4.4. In accordance with the investment policy specified in the contract and in light of the risks that may arise in relation to the portfolio the investment company concludes buy/sell and change of securities and derivative financial instruments and other transactions.
4.5. The investment company should not allow sell of assets above the market price, if not available, above fair value or sell of assets in the portfolio below their market price, if not available, below fair value, as well as buy/sell of assets to protect its own or third party interests.
4.6. The investment company is not allowed to promise absolute income to clients on individual investors’ portfolio management service (operation).
4.7. When doing buy/sell operations on individual investors’ portfolio management service (operation) the investment company should rely on facts, information, reports and analyses and these materials should be retained for as long as individual investors’ portfolio management service are offered.

5. Investment consultations

5.1. One of the types of main investment services – investment consultations are issued to the client that signs a contract with an investment company.
5.2. Prior to signing a contract with the client on issue of investment consultations the investment company should determine whether the investment service is appropriate for the client in accordance with Section 16 herein.
5.3. When issuing investment consultations the investment company meets the following consultations:
5.3.1. investment consultations rely on reliable facts, information, reports and analyses;
5.3.2. during issue of investment consultation on public offering of securities the investment company uses emission prospectus of those securities or the information specified in information memorandum;
5.3.3. opinions, analyses, forecasts, price targets and recommendations in investment consultations are developed objectively;
5.3.4. no absolute income related promises or guarantees are provided in investment consultations;
5.3.5. misleading, distracting, erroneous or untrue information and statements are not used in investment consultations;
5.3.6. before investment consultation results are delivered to the investor, the investment company may not use them for own or third party interests.
5.4. During investment consultation the investment company provides the client with the following information:
5.4.1. investment company name and address;
5.4.2. 1st and last names, position of the person who issues investment consultation, serial number of the qualification certificate, date of issue;
5.4.3. information sources, investment strategies and analysis methods used in development of the investment consultation;
5.4.4. the date and time of the investment consultation;
5.4.5. content of the investment consultation;
5.4.6. information on possible conflict of interests.
5.5. Investment consultation is issued only by the staff of the investment company with appropriate qualification certificates and investment consultations are recorded in the investment company.

6. Placement and underwriting of securities with or without any commitments

6.1. Underwriting of securities as a main investment service may be carried out by the investment company with or without an obligation to purchase securities not acquired by investors at the time of placement of securities in accordance with the terms of the agreement with the issuer.
6.2. During subscription of securities with commitment or placement via an auction under the agreement concluded with the issuer the investment company:
6.2.1. purchases securities not acquired by investors during placement of securities in full or partially;
6.2.2. purchases securities to be placed in full or partially and offers them to investors.
6.3. The underwriting service can be offered jointly by more than one investment company. Where the underwriting service is offered jointly by several investment companies, one investment company is defined as the main underwriter.

7. Operations with securities or derivatives at one’s own expense as the member of a central depository and stock exchange

7.1. When conducting operations with securities or derivative financial instruments as the member of the central depository and the stock exchange the investment company executes client orders with the best price principle.
7.2. Client orders are executed at the market price of securities or derivative financial instruments, if not available, at their fair value.
7.3. When an investment company, that maintains operations with securities and derivatives at its own expense as the member of the central depository and the stock exchange acts as a market maker, it discharges duties specified in the contract with the stock exchange.

8. Client’s securities accounts management

8.1. The client's securities account management service is provided by the investment company as an auxiliary investment service, that provides for protection and storage of client’s securities based on an agreement signed with the client, conducting operations on the account with the client's consent, including execution of operations related to encumbrance of securities.
8.2. The investment company manages client’s securities accounts via the account opened in the client’s name with the central depository.
8.3. Transactions on client’s securities accounts management are conducted at the consent of the client either delivered on a paper carrier or electronically.

9. Issue of loans or other types of debt to investors to conclude transactions with securities or derivatives

9.1. An investment company may provide a loan or other form of lending service (operation) to a client for whom it provides its main investment service for conclusion of transactions with securities or derivatives only for the purpose of purchasing securities or derivatives.
9.2. When an investment company provides a loan or other form of lending service (transaction) to investors to conclude deals with securities or derivative financial instruments, it should also provide a service (operation) to receive and execute client orders related to transactions with securities or derivative financial instruments.
9.3. When an investment company provides a loan or other form of lending service (operation), it provides the customer with a report on the balance of the loan within the period specified in the contract, but not less than twice a year.

10. Securities or derivative financial instruments related investment research and financial analysis

10.1. An investment company that maintains securities or derivatives related investment research makes ‘investment research’ note on investment research documents.
10.2. Any recommendation in an investment research needs to be clear, unambiguous and understandable.
10.3. Other requirements for an investment research and the persons who develop it are regulated with the Law and the legal act adopted in accordance with Article 37.3 of the Law.

11. Foreign exchange related to provision of main investment services (operations)

11.1. To provide main investment services (operations) an investment company may supply foreign exchange service for a client. The exchange rate applied during the foreign exchange transaction is set by the investment company independently.
11.2. When providing a foreign exchange service the client is informed on the exchange rate introduced by the investment company.
11.3. During the trading day exchange rates may change at the discretion of the investment company. Any change made to the exchange rate is recorded in the investment company’s internal register including the date and time and the client is notified accordingly.
11.4. A foreign exchange transaction is recorded in the investment company’s operating system and the report delivered to the client related to the transaction includes the following in addition to the information specified herein:
11.4.1. type of foreign exchange related investment service (operation);
11.4.2. the name and amount of the foreign currency exchanged and the exchange rate set by the investment company as of the day.

12. Qualification certificates for provision of investment services (operations)

12.1. An employee of an investment company who has a certificate for receiving and executing customer orders related to transactions with securities or derivatives may not simultaneously deal with provision of the service (operation) with securities or derivatives at his/her own expense as a member of a central depository and stock exchange.
12.2. An investment company employee who has a qualification certificate on maintaining transactions with securities or derivatives at his/her own expense as the member of a central depository and stock exchange may not simultaneously deal with issue of investment consultations or provision of investment service (operation) on individual investor’s portfolio management.

13. Contract on provision of investment services (operations)

13.1. A written agreement (hereinafter – a contract) is signed between an investment company and a client on provision of investment services (operations).
13.2. The contract developed on a paper carrier is approved by signatures of the parties. Except for the case specified in sub-item 15.1.2.2 herein, a contract developed electronically is approved with a strengthened electronic signature. In the case specified in sub-item 15.1.2.2 herein the contract is concluded as per Articles 406.3 and 331.3 of the Civil Code of the Republic of Azerbaijan.
13.3. The contract includes at least the following:
13.3.1. place and date of signing the contract;
13.3.2. if client is an individual – his/her 1st, middle and last names, series, number of an ID card, the PIN code and date of issue, address; if a legal entity – legal entity’s full name, the tax identification number (TIN) and address;
13.3.3. the number and date of the license for investment company activities;
13.3.4. the subject of the contract and types of supplied services;
13.3.5. rights and responsibilities of the parties;
13.3.6. settlement procedure under the contract;
13.3.7. investment company’s service fee, expenses related to their execution and the procedure for their payment;
13.3.8. the procedure for the return of client’s assets, including conditions for mutual settlements in the event of refusal to maintain a transaction at the initiative of a client or an investment company;
13.3.9. procedure for cancellation of the order or full or partial cancellation of the unexecuted part of the order and informing the client accordingly;
13.3.10. the procedure for submitting reports to a client;
13.3.11. the period of the contract;
13.3.12. procedure for extending the contract;
13.3.13. responsibilities of the parties;
13.3.14. the name and address of the financial markets supervisory authority;
13.3.15. dispute resolution methods.
13.4. The contract on individual investors’ portfolio management should include at least the following provisions in addition to those specified in Article 13.3 herein:
13.4.1. procedure for transferring client assets to investment company’s management;
13.4.2. dates for occurrence and completion of liabilities on client assets management;
13.4.3. amount of client assets under management;
13.4.4. the investment policy.
13.5. The investment policy specified in sub item 13.4.4 herein should include at least:
13.5.1. types of securities and derivatives;
13.5.2. maximum amount or share of investments to particular types of securities and derivatives;
13.5.3. indicators that allow to identify the rate of investment’s risk exposure.
13.6. A contract on securities accounts management should include at least the following provisions in addition to those specified in Item 13.3 herein:
13.6.1. requisites of the account opened with the central depository in the client’s name and transferred to investment company’s management;
13.6.2. start and end dates of securities account management;
13.6.3. securities and derivatives in the account transferred to management (if any), their nominal value and price.
13.7. After signing a contract the investment company assigns a unique client code in its internal accounting system and a client is risk categorized under the AML/CTF Law.
13.8. Except for the cases specified in the Law or the cases agreed with the client in writing the investment company may not disclose information on its clients to third parties.
13.9. An investment company uses client assets only in line with the terms of the contract.

14. Delivery of documents to the investment company

14.1. The investment company signs a contract with a client and opens client accounts (depo and margin accounts) based on the documents specified herein and arising from the international agreements seconded by the Republic of Azerbaijan.
14.2. The following documents are required for signing a contract with an individual client and opening client accounts (depo and margin) by the investment company:
14.2.1. client ID card information (ID card is presented, copied to be kept at the investment company and returned);
14.2.2. if a client is represented by an individual as an authorized person, a document confirming the identity and representation of the person representing the client, and if a customer is represented by a legal entity as an authorized representative, the documents specified in Item 14.3 herein;
14.2.3. client questionnaire (Annex № 1).
14.3. The following documents are required for signing a contract with a legal entity client and opening client accounts (depo and margin) by the investment company:
14.3.1. a notarized copy of the charter of the legal entity and the relevant document on state registration or a copy verified in the manner prescribed by Article 9 of the Law of the Republic of Azerbaijan "On Administrative Proceedings";
14.3.2. power of attorney (if any);
14.3.3. client questionnaire (Annex 2);
14.3.4. list of persons with an authority of signature, sample signature and stamp (Annex 3).
14.4. The investment company verifies the documents, also when a contract is signed with the investment company on a representation basis, the investment company identifies the authorized person reconciles the information in their ID cards with the one in the power of attorney. In case of mismatches in the documents, the investment company refuses to provide investment services (operations).
14.5. Except for the clients and beneficiary owners on whom simplified identification and verification measures are applied under the AML/CTF Law, when any of the indications specified in Items 14.6-14.8 herein are determined with respect to the client and/or his/her authorized representative, the client or his/her authorized representative submits additional identification information specified in Annex 4 herein. In case of availability of suspicious case with respect to reliability of the information, the information is required to be confirmed with supporting documents.
14.6. Prior to concluding a contract with a new client, who is an individual, it is identified whether he/she has one or several of the following indications:
14.6.1. execution of the operations specified in Article 7.2.2 of the AML/CTF Law;
14.6.2. inclusion to the list of the persons subject to sanctions specified in Article 7.3-1 of the AML/CTF Law;
14.6.3. corresponds to a high risk category set as part of the internal control system of the investment company;
14.6.4. he/she is a public figure of a foreign state;
14.6.5. it is known that he/she will conduct operations with the countries included to the list specified in Article 7.3 of the AML/CTF Law.
14.7. Prior to concluding a contract with a client or a person authorized on his/her behalf, it is identified whether the new authorized representative and an individual who issues a power of attorney to him/her has one or several of the indications as per Item 14.6 herein.
14.8. Prior to opening an account for a new client that is a legal entity (its branch or representative office) (except for legal persons 100% of whose shares are owned by the state, public legal entities and diplomatic missions) it is identified whether it has one or several of the following indications:
14.8.1. relates to a high risk category set as part of the internal control system of the investment company;
14.8.2. legal entity’s beneficiary owner or head(s) of legal entity’s managerial body(ies) has/have the following indications:
14.8.2.1. conducts operations specified in Article 7.2.2 of the ML/CTF Law;
14.8.2.2. is in the list of the persons subject to sanctions specified in Article 7.3-1 of the AML/CTF Law;
14.8.2.3. he/she is a public figure of a foreign state;
14.8.2.4. corresponds to a high risk category set as part of the internal control system of the investment company;
14.8.2.5. he/she is a partner of a foreign public figure;
14.8.3. it is known that it will conduct operations with the countries included to the list specified in Article 7.3 of the AML/CTF Law.
14.9. A new client that is a legal entity is identified and verified until being fully confident that its all beneficiary owners that are individuals are identified. For this, measures are taken in the following sequence:
14.9.1. individuals with a qualifying holding in a legal entity (if allocation of participation shares in the legal entity does not preclude qualifying holding) are identified, accuracy of their identification information is verified via reliable and independent sources, the information is copied and stored;
14.9.2. if there are suspicions that the individuals with qualifying holding are legal entity’s beneficiary owners or there are no individuals that exercise control over the legal entity with the participation share in the legal entity, the individuals that exercise control over the legal entity on a contractual basis or in another form, are identified, accuracy of their identification information is verified via reliable and independent sources, the information is copied and stored;
14.9.3. if it is impossible to identify the individuals that exercise control over the legal entity in any form (with the participation share he/she owns, on a contractual basis or in another form), the individuals in charge of the legal entity (the person authorized to take a decision on legal entity’s current or permanent relations) is identified and measures are taken for his/her verification.
14.10. The documents specified in Items 14.2, 14.3 and 14.5 herein are delivered in a paper carrier or upon being approved with a strengthened electronic signature (except for the case specified in sub-item 15.1.2.2 herein).
14.11. In the case specified in sub-item 15.1.2.2 herein, the documents as per Item 14.2 herein are submitted taking into account the requirements of the legislation, as well as via electronic communication, which allows you to accurately determine whether the document came from the other party.
14.12. Reliability of the documents and information delivered by the client or his/her authorized representative, as well as client’s or its authorized representative’s having the indications specified in Items 14.6-14.8 herein is validated by the investment company under a preset periodicity depending on the client’s risk category.
14.13. If discrepancies are discovered, the client or his/her authorized representative is required within 2 (two) business days to deliver the information that disclose its reasons or the information as per Annex 3 herein to deliver either in writing or approved with electronic signature within 30 (thirty) calendar days.
14.14. In case relevant public authorities (bodies) are integrated to the electronic information system the investment company gets relevant documents and information provided for in Items 14.2,14.3 and 14.5 herein in an online regime.

15. Distant client account opening

15.1. The investment company opens accounts (depo and margin) for new clients remotely on legal entities and individuals (except for the case the client is represented by an authorized representative) in the following order:
15.1.1. for legal entities with strengthened electronic signature – requiring the documents and information specified in Item 14.3 herein;
15.1.2. for individuals:
15.1.2.1. with strengthened electronic signature – requiring the documents and information specified in Item 14.2 herein;
15.1.2.2. by means of video conferencing (requiring the documents and information specified in Item 14.2 herein) – for the account to be opened for foreign currency denominated buy/sell operations with securities or derivatives amounting to total AZN15000 (fifteen thousand) or equivalent within 1 (one) year after the account is opened. At that, the client is identified via a dedicated information resource.
15.2. When opening a new account remotely for individuals who were identified by physical participation at the investment company and who have accounts, they are not required to be identified and verified, and provide the documents and information specified in Item 15.1 herein.

16. Assessment of client information

16.1. The investment company engaged in individual investor portfolio management or investment consulting prior to signing a contract with a client receives detailed written information (in hard or soft copy) on client’s financial standing and investment purposes.
16.2. The information submitted by the client on financial standing should include:
16.2.1. regular income and its source;
16.2.2. assets, including liquid funds, investments and real estate;
16.2.3. financial liabilities.
16.3. The information on investment purposes should at least includes the investment period and client’s risk limit.
16.4. Based on the information as per Items 16.2 and 16.3 herein the investment company notifies the client on the following within 3 (three) business days (in hard or soft copy);
16.4.1. whether the investment service (operation), securities or derivative financial instruments are appropriate for the client;
16.4.2. impossibility of assessment of appropriateness of investment services (operations) or assets offered by the investment company for the client or ordered by the client due to non-submission of information;
16.4.3. on non-appropriateness of investment services (operations) or assets ordered by the client for the client as a result of assessment of submitted information.
16.5. Institutional investors are not subject to this section of this Regulation.

17. Internal rules

17.1. The investment company should have internal rules on maintaining investment services (operations) approved by the supervisory board.
17.2. Investment company’s internal rules should cover at least procedures on:
17.2.1. the know your customer and recognizing the customer as a client;
17.2.2. identification and verification (additional verification) of clients and beneficiary owners;
17.2.3. on identification of client’s risk category and exercising ongoing control over operations depending on client’s risk category;
17.2.4. execution of client orders, including execution with the best price principle;
17.2.5. accounting client’s assets;
17.2.6. accounting operations;
17.2.7. review of client complaint;
17.2.8. prevention of conflict of interests.
17.3. Internal rules on provision of margin trading related investment services (operations) are also developed in line with requirements of the regulation on margin trading.

18. Reports submitted to clients

18.1. The investment company submits reports to clients in the cases and within the timeframe specified in the Law.
18.2. Except for individual investor’s portfolio management service (operation), the investment company that executed an order on behalf of a client delivers a report on execution of the order to the client no later than 1 (one) business day after the order is executed. The report includes at least:
18.2.1. the period and date of development of the report;
18.2.2. client identification information (1st, last names and (or) TIN (if any);
18.2.3. the number and date of the contract;
18.2.4. information on the order;
18.2.5. date and time of transactions with securities or derivatives;
18.2.6. direction of transaction (buy or sell);
18.2.7. the nature of order if transaction is neither buy nor sell;
18.2.8. the name of the issuer of securities or derivative’s underlying asset;
18.2.9. the type, form and state registration number of securities or derivatives;
18.2.10. price per security or derivative;
18.2.11. the number of securities or derivatives;
18.2.12. amount of transactions with securities or derivatives;
18.2.13. amount of investment company’s premium and amount of service fees and costs associated with the execution of orders over the reported period.
18.3. When an investment company maintains individual investor’s portfolio management service (operation), it delivers a report to a client on the operations it conducted according to Article 35.3 of the Law. The report includes the following:
18.3.1. investment company name, the number and date of its license;
18.3.2. client’s identification information (1st, last names, and (or) TIN (if any);
18.3.3. report on composition or value of portfolio, including market price per security and derivative in the portfolio, if not available, their fair value, outstanding amount as of the beginning and end-period and portfolio indicators over the period;
18.3.4. total amount of payments made and expenses incurred over the period indicating payments related to portfolio management and expenses related to execution of orders separately;
18.3.5. total amount of portfolio related dividends, interest and other income over the reported period.
18.4. The investment company delivers a report on the following in accordance with the contract but not less than once a year:
18.4.1. movement and balance of client’s assets over the reported period;
18.4.2. transactions conducted with client’s assets;
18.4.3. changes in client’s assets;
18.4.4. service fees and expenses related to execution of orders.
18.5. Reports and information delivered to clients on margin trading are maintained in line with the requirements of the regulation on margin trading.
18.6. Reports and information delivered to clients by the investment company are delivered in hard or soft copy in line with the contract signed with the client.

19. Accounting of operations

19.1. An investment company keeps record of its transactions and transactions related client complaints in hard in soft copy.
19.2. Accounting of investment company operations covers the following:
19.2.1. accounting of client orders;
19.2.2. accounting of transactions with securities or derivatives;
19.2.3. accounting of money funds.
19.3. An investment company engaged in receiving and execution of client orders should keep records covering the following information on the day of receiving the order:
19.3.1. client identification information;
19.3.2. the number and date of the contract signed with the client;
19.3.3. type of the order;
19.3.4. how the order was made (phone, electronically, other means);
19.3.5. date, time and number of acceptance of the order for execution;
19.3.6. order validity;
19.3.7. subject of the order;
19.3.8. 1st, last and middle names and position of the responsible person, who received the order;
19.3.9. When a client is represented by his/her/its authorized person, his/her/its identification information (if an individual – his/her 1st, last, middle names, if a legal person – the legal person’s full name, the TIN);
19.4. An investment company should keep accounts immediately after execution of client order related to conclusion of the deal. The record of deals should include the following:
19.4.1. client identification information;
19.4.2. place of transaction and identification code;
19.4.3. transaction date and time;
19.4.4. direction of the transaction (buy/sell);
19.4.5. price per security or derivative, except for service fees and accrued interest;
19.4.6. the number of securities or derivatives, that are the subject of the transaction;
19.4.7. transaction amount;
19.4.8. counteragent on the transaction (counterparty);
19.4.9. 1st, last, middle names of the person who concluded the deal.
19.5. Accounting of money funds of the client with the investment company should be maintained separately per client and include the following:
19.5.1. date of cash transactions;
19.5.2. number and date of the document confirming payment on deals and operations;
19.5.3. amount, source and purpose of inflow of money funds;
19.5.4. amount and purpose of outflow of funds;
19.5.5. balance of client’s money funds;
19.5.6. amount of service fees charged by the investment company to that client.
19.6. An investment company accounts transactions in the national currency. When transactions with securities or derivatives are concluded in a foreign currency, accounting is maintained in foreign currency, as well as in the national currency indicating manat equivalent. Manat equivalent is calculated at an official exchange rate of the Central Bank of the Republic of Azerbaijan as of the date.
19.7. When maintaining accounting of margin trading operations, the requirements of the regulation on margin trading should be also compiled with.
19.8. Accounting of client complaints regarding operations conducted by the investment company should cover at least the following information:
19.8.1. İdentification information of the client who filed a complaint (if an individual – his/her 1st, last, middle names, if a legal person – the legal person’s full name, the TIN);
19.8.2. unique client code;
19.8.3. date of complaint;
19.8.4. content of the complaint;
19.8.5. information on measures taken by the investment company with respect to the complaint.
19.9. The address and contact information with respect to acceptance of client complaints are placed in documents delivered to clients and investment company’s official website.