Debt Securities*

To start investing in financial instruments (shares, bonds, investment funds including exchange-traded funds or ETFs) you must be a Citadele customer:

• with a current account or payment card account (if you are not yet a Citadele customer, see “How to become a customer without visiting a branch”);
• with access to the online bank (if you are a customer, but do not have online banking access, please apply for branch visit).

You must sign an agreement for opening a financial instrument account and making transactions with financial instruments. It is easiest and simplest to sign the agreement in the online bank under Investments.

In the application, you must add the following:

• Create a phone password. This is a password you make up yourself (a word using the Latin alphabet, may also contain numbers), which you will have to tell our brokers if you have to identify yourself during a phone call. This password is also used in transaction confirmations that are emailed to you. 
• Select a default currency by which the value of your securities portfolio will be calculated, your commission fee will be taken, and so on. Your financial instrument account is a multi-value account, so you can use it to hold and use funds in different currencies.
• Your financial instrument account can be designated an “Investment Account,” which in accordance with the Law On Personal Income Tax is subject to simplified tax calculation and declaration, however there are some restrictions to this (for example, for securities transfers). You can find out what choice is right for you here.

In the online bank, under Document History, you will see the completion status of the order you have submitted, and the associated account number. We will transfer the securities you purchase into this account, and hold them there, as well as the money you use for transactions with financial instruments. We open the account within 3 hours of receiving your application.

Important! To purchase securities which are sold on the U.S. markets, or who make their money in the U.S., fill in and submit three copies of a valid (personally signed) W-8BEN tax form. You can submit the form at any Citadele branch, first booking an appointment through our website.

We can use the data we have available to prepare this form and send it to your chosen Citadele branch for signing. You need to request this by, for example, submitting a free-form order through the online bank.
The form is valid for 3 years.

Additional information for legal entities: If the company’s management wishes to authorise an employee to make financial instrument transactions in the company’s account, and who is not an authorised person according to the business registry, you must submit an additional authorisation form. See example here.

Log in through the online bank and select Payments > Payment between accounts.

Afterwards, select the financial instrument cash account from which you will make the payment, and the current or card account to which you would like to make a transfer.

You can only pay within Citadele, meaning that you can transfer money from your financial instrument account to a different account that you hold with us, but not to an account held with any other bank.

You can submit an order for the purchase or sale of bonds in the online bank under Investments > New order > Order for the purchase or sale of bonds.

The order must contain the security’s details and transaction terms.
Security details:

• Issuer: the name of the bond issuer;
• ISIN code: the security’s unique code;
• Maturity date;
• Coupon rate;

Transaction terms:

• Operation type: purchase or sale;
• Nominal: transaction amount;
• Order type: choose from Market or Limit, where:
  • MKT - Market is a market order where the transaction is processed at the market price registered at the exchange at the moment of submitting the order;
  • LMT - Limit is a price-limiting order. You can purchase or sell the security at the price specified or higher (but not lower), if possible and if the market has reached this price.
• The order’s date of expiry. Bond orders are, by default, Day orders, which are valid for one trading session.

To submit an order to transfer or receive securities through the online bank, under Investments, go to Orders > New order > Securities > Receiving or transferring financial instruments, and fill in the order.

The order must include:

• The transaction date (order date);
• The payment date (completion date);
• The name of the financial instrument;
• The financial instrument’s ISIN code;
• The number of financial instruments;
• The financial instrument’s currency;
• The sender/recipient’s name;
• The personal code or registration number of the sender/recipient;
• The sender/recipient’s financial instrument account number;
• The name of the sender/recipient’s credit institution or brokerage;
• The sender/recipient’s depositary details.

In the case of deregistration (receiving securities from the Nasdaq CSD Depository Initial Register), you do not have to fill in the Sender’s financial instrument account number.

For deregistration, you can also submit a free-form order under Investments> Orders > New order > Securities > Free-form order, indicating the number of shares and the name you wish to deregister to your financial instrument account from the Nasdaq CSD Initial Register.

Log into the online bank and select Payments > Payment between accounts.

Choose the account from which you will make the payment, add the amount and select the investment account you wish to transfer to. You should add the currency you wish to invest in.

There is no commission fee for payments between your own accounts, as long as the order is submitted through the Payments section of the online bank.

To receive securities, you must:

• Submit an order to receive securities;
• Submit the securities transfer order to us/the brokerage from which the securities are being transferred.

To transfer securities, you must:

• Submit an order to transfer securities;
• Submit the securities receipt order to us/the brokerage to which the securities are being transferred.

Bear in mind:

• The transaction details, including for transaction and payment dates, must match on both orders. The payment date should be no sooner than +2 business days from when the order is submitted.
• The commission fee for transferring or receiving securities must be available in your financial instrument account.
• Transfers resulting in a change of ownership of the securities may require additional documents to justify the transfer.

In the app, go to Pay > Between accounts.

Select the account from which you would like to make the payment, and select the investment account you would like to add to. You should include the currency in which you will be investing.

There is no commission fee for payments between your own accounts, as long as the order is submitted through the Payments section of the online bank.