Karrada – Nadiem Jameel Bld., 2nd Floor, Apt.

19
Area 903, Street # 14, Bld. # 19
Baghdad – Iraq
Email: [email protected]
Website: www.rs.iq
Tel #: +964 (0) 72 7002 0407
RS BROKERAGE ACCOUNT OPENING AGREEMENT - Individual Trading Account

This agreement was signed on between:

Second Party:

The Second Party is referred to in this contract as the “Investor” or the “Second Party”.

This agreement developed according to the ISX instructions which issued by the Iraqi Securities
Commission (ISC), both parties agree to the following:
1. All forms and appendixes attached to this agreement are considered an integral part of this
agreement and they supplement each other.
2. The “First Party” will open trading account for the “Second Party” for the purpose of trading
listed securities on the ISX, and any other instruments that might list later, according to the
trading regulations of the ISX.
3. The “Second Party” will be responsible for funding the trading account to the limit of its desired
investment on the ISX, as (T+0) mechanism adopted by ISX. The Second Party may after the
initial funding increase the amounts as they wish to invest further on the ISX.
4. The “First Party" will be fair and just in executing all clients’ trades. The code of ethics will be
applied to all trades.
5. All information pertaining to the “Second Party” will be confidential and will not be revealed
unless required by law. The “Second Party” acknowledges that all documents could be used in
case of dispute between the parties.
6. The “First Party” will charge a brokerage commission of ( %) of the trading value. This
commission will be deducted directly from any trades related to “Second Party”, and recorded in
the statements and reports issued by the “First Party”. The brokerage commission may change
upon both parties approval, any change will be in separate appendix to this agreement. Any other
extra charges, commission, and fees will approved by both parties and will be in a separate
appendix to this agreement.
7. The first party will charge the second party one basis point at the end of each month on the
portfolio of stocks held with RS in lieu of custody services. (Maximum charge would be $1000
per month, and minimum would be $10 per month for accounts holding less than $100k. (These
charges will be dropped once third party custody services are available in Iraq.
8. The “First Party” will provide execution reports to the “Second Party” following each trading
session. Reports included the trades details and will be delivered to the “Second Party’s” email
and should be acknowledged within 48 hours otherwise they are deemed correct. The “Second
Party” is responsible for notifying the “First Party” of any changes in email addresses.
9. All objections to any trade are to be sent in writing via email.
10. The “First Party” does not accept money from the “Second Party” in cash. Funds should be
transferred through international banks using the transfer instructions provided by the “First
Party”. The “First Party” is to be notified by email of any transfer into its account.
 11. No money is remitted to the customer in cash from the “First Party”. All remittances will be by
cheque to local clients and through bank transfers to foreign clients. Transfers will be made to the
client’s bank account and not to any other bank account. The “Second Party” can keep the cash
balance accrued from wiring transfer or selling securities as credit in the trading account to be
used for future investment.
12. The “First Party” will execute all orders according to the “Second Party’s” instructions of the
order form. The “Second Party” acknowledges responsibility for all its instructions.
13. The “Second Party” acknowledges the inherit risk of investing in equity markets. The “First
Party” does not take responsibility for any losses incurred by the “Second Party” through its
investing activities on the ISX. The “First Party” is committed to exert utmost care in executing
all trading orders.
14. The “First Party” should be notified if the “Second Party” or any of its affiliated persons are board
members on any ISX listed company, according to the insider discloser instructions of the ISX.
The “Second Party” is also to notify the “First Party “if it is holding 10% or more of a particular
share capital of a listed company on the ISX, this according to the discloser instructions of the
ISX.
15. The Second Party acknowledges that he/she is the ultimate beneficiary of the account, and that all
the funds were acquired through legal and lawful activities. The money laundry law (39) of 2015
of the Central Bank of Iraq and related instructions of the ISC and ISX will be considered.
16. The “First Party” will notify the “Second Party” of any changes in laws and instructions of the
ISX. The “Second Party” will be responsible for implementing all these changes.
17. The “Second Party” agrees to abide by all the laws and instructions of the ISX.
18. The “Second Party” can’t trade by the same stock through other brokerage house in the same
session, according to the trading instructions of the ISX.
19. The “First Party” will only dispose of “Second Party” shares with the written consent of the
Second Party.
20. All transaction disputes between the two parties will be settled in accordance with the laws and
procedures of the ISX. Entering into this contract both parties are consenting to arbitration by the
ISX.
21. According to this agreement the “Second Party” authorized the “First Party” to receive the cash
dividends of the listed companies in the ISX, and submit the required documents for these
procedures. Also, “First Party” to notify the “Second Party” about any corporate action
procedures related to capital increase of the listed companies to be proceeding.
22. According to this agreement the “Second Party” authorized the “First Party” to deposit the
physical share certificate of the listed companies in the Iraqi Depository Center.
23. Reporting: “First Party” is responsible to provide daily reporting on the portfolio activities of
“Second Party”. “First Party” will not provide any additional forms of portfolio reporting.
First Party Second Party

Signature: Signature:

Name: Nausheruan Baban Name:

Full Name:

Date of Birth:

Passport Number:

Driver License Number:

Full Address

Telephone Number:

Fax Number:

Mobile Number:

Email Address:

P.O. Box:

Note:
- All required documents have to be up to date certified by public notary.
- I acknowledge the correctness of the data mentioned in this form and bear their responsibility.

Client Signature (3 samples)

Full Name:

Date of Birth:

Passport Number:

Driver License Number:

Full Address

Telephone Number:

Fax Number:

Mobile Number:

Email Address:

P.O. Box:

Limit of Authorization:
Authorization to Open or Close Account ( ) Yes ( ) No
Trade Authorization ( ) Yes ( ) No
Trade Settlement ( ) Yes ( ) No
Viewing Access ( ) Yes ( ) No
Trade Authorization ( ) Yes ( ) No
Authorization of Cash Wires or Security Transfers ( ) Yes ( ) No

Authorized Person Signature (3 samples)

Full Name:

Date of Birth:

Mother Name:

Spouse Name:

Passport Number:

Passport Issue Date:

Passport Expiry Date

Occupation:

Full Address:

Telephone Number:

Mobile Number:

Email Address:

P.O. Box:

Documents Required:

Passport Copy

Driver License

Resident Card
 Which banks do you deal with?

Bank (1)
In which country?

Existing facilities:

Bank (2)
Bank (3)
Bank (4)

Sources of funds:

Expecting Monthly Trading Value:

Expecting Annual Trading Value:

I, signed below, in full and conscious use of all my mental and legal faculties pledge that all the information above, and all
submitted documents and evidence related to the source of funds are correct,. I also pledge to inform the brokerage company
in writing in case of any change in the mentioned information. I confirm my knowledge of the of ISC money laundry
instructions, which I have read and approved of. Hence, I will be held liable of any legal procedures.

Client Signature