ANNEX Practices (non-exhaustive list) that do not deem ‘to be in line with the provisions of article 36(1)(a) of the Law — 1. Marketing that does not present opportunities and risks in a balanced manner. 2. Marketing channels that do not take into account that certain products should only be available to experienced investors, 3. Aggressive marketing communications targeting retail clients stating that no prior experience is required and/or trading in binary options is appropriate for a novice investor. 4. Examples of provision of information that may not be considered clear, fair and not misleading are when: |. misleading information about where the company is regulated and by whom; ti, using the name of a competent authority in such a way that indicates or suggests endorsement/approval of its services and products; ili, presenting complex financial instruments as simple to trade; iv. using language showing returns that appear higher than the real return; ¥. promoting an x% bonus, without any reference to the bonus terms and conditions and/or without any risk warning; vi. presenting selected trading information to show a large percentage of gains without including the performance of all the trading history of the clients and without having transactions for at least 12 months; wil, the method for calculating the strike price and/or expiry price is not explained adequately; vill. stressing the return ina way that it becomes the dominant message of the marketing communication such as "up to 85% in one minute"; ix. presenting bonus as risk free trades or trades without risk; x _ trading in binary options is appropriate for a novice investor. 5. Unsolicited online advertising and emails sent to clients as well as repeated/constant calls encouraging people to invest. 6. Insufficient information provided to clients (e.g. about product features, risks and functioning). 7. Sales department personnel presenting themselves as financial experts/advisors and /or with false identification as to their real identity. 8. Regading trading information presented through the electronic platform it has been noted that certain information is not presented in a clear, fair and not misleading manner such as. returns/payouts are presented as greater than the real return, prices and graphs that is not clear what they represent (price of option or market price of underlying), investment ‘ayio0u 27,1097 evel, King Tk (635 Ema 08 9.24096, 506 Anacca Kingog | 27 agoou C067 Noosa, Cys 0. Boc24096,CY- 1:06 Neos, Cpe 2600, Ga (+ fat (+857 2280860, Fax: (+357) 22506700 at noes. go. Web: marcy govcyamounts in units instead of a currency and showing quotes for instruments that are not available for trading. Information i and examples the bonus terms and conditions policy that lacks the necessary explanations order to be clear, fair and not misleading and in line with Circular 65. Circulars with number C1144-2013-07 and Cl144-2013-16 are also relevant to the above subject. ‘c¥ep0u27 1087 muna, Kinpog/T., 2986, 1908 evel Kingor | 27 Dagon, i: 1097 Neos, Or |. Box 2806, Y-1206 Neos, Cyprus Tnx (+857 2zs08600, Oa: (+367) 22506700 | Tet (+957) 2280R000, Fax (+37 2506700 Ema iio@oysecgovcy, Web: wercysecgovey Ema iflc@cyene gov, Web ww eyez gvcy