Investors Europe (Mauritius) Limited - Training Module I

According to the given information, Investors Europe Stock Brokers is required by law to have two resident directors in Mauritius. This suggests that it is mandatory for the company to appoint two directors who are residents of Mauritius in order to comply with legal regulations. Therefore, the answer is true.

Nominee Trading Accounts actually offer more confidentiality and privacy compared to other kinds of trading accounts. In a Nominee Trading Account, the shares are held in the name of a nominee, who acts as a trustee for the account holder. This means that the account holder's personal information and trading activities are not publicly disclosed. In contrast, other types of trading accounts may require the account holder's personal information to be disclosed, which could potentially compromise their privacy and confidentiality. Therefore, the correct answer is False.

Investors Europe works with Support Consultants in 3 different time zones to cover world stock exchanges. This suggests that the company has a global presence and is able to provide support to its clients around the clock. By having consultants in different time zones, Investors Europe can ensure that there is always someone available to assist clients, regardless of their location or the time of day. This approach allows for efficient and timely support, making the statement "True."

A sovereign bond is a type of debt instrument that is issued by a government to raise funds for various purposes, including paying its bills. This bond is backed by the full faith and credit of the issuing country, making it a relatively safe investment. Investors who purchase sovereign bonds essentially lend money to the government in return for regular interest payments and the return of the principal amount at maturity. Therefore, the statement "A Sovereign bond is debt issued by a country to raise money to pay its bills" is true.

The statement provided is incorrect. KYC actually stands for 'Know Your Customer' and refers to the process that businesses follow to verify the identity of their clients and assess their suitability and potential risks. It is a standard practice in industries such as banking, finance, and telecommunications to prevent fraud, money laundering, and other illegal activities. The term has no direct relation to international stock exchanges or contracts.

The given statement is true because a 'U.S. Person' is indeed defined as a person who is permanently resident inside the USA. This term is commonly used in the context of tax regulations and financial laws to determine the tax obligations and legal rights of individuals residing in the United States. Therefore, if someone is permanently living within the borders of the USA, they can be classified as a 'U.S. Person' according to this definition.

The statement is false because the classification of a client as "Professional" using the MiFID benchmark requires more than just having worked in the financial sector for 1 year. The MiFID benchmark sets specific criteria and requirements that a client must meet in order to be classified as "Professional," such as having a certain level of experience, knowledge, and expertise in the financial markets. Simply having worked in the financial sector for 1 year is not sufficient to meet these criteria.

DTC, which stands for Depository Trust Company, is indeed the main settlement/clearing agency for securities in the US. It is responsible for facilitating the electronic transfer of securities, such as stocks and bonds, between buyers and sellers. DTC acts as a central depository for these securities, holding them in electronic form and ensuring that ownership transfers are properly recorded. By providing efficient and secure settlement services, DTC plays a crucial role in the functioning of the US securities market.

AML (Anti-Money Laundering) regulations require investment businesses like the Company to identify their clients. This is done to prevent money laundering and other illegal activities. Therefore, it is not true that AML-regulated investment businesses are not always required by law to identify their clients. The correct answer is False.

Under FATCA (Foreign Account Tax Compliance Act), an FFI (Foreign Financial Institution) refers to any non-U.S. financial institution that has customers or clients who are U.S. persons. These FFIs are required to report information about their U.S. account holders to the U.S. Internal Revenue Service (IRS). Therefore, the statement "Under FATCA, an FFI is a Foreign Financial Institution" is true, as it accurately reflects the definition and requirements of FFIs under FATCA.

The law on anti-money laundering requires financial institutions to maintain strict confidentiality regarding any suspicions of money laundering involving their clients. This means that they are not allowed to inform clients about their suspicions, as doing so could compromise the investigation and potentially enable the client to take actions to conceal or move their illicit funds. Therefore, the statement "The law on anti-money laundering forbids us to inform clients of our suspicions of their money laundering" is true.

As dividend payment time approaches, the price of a stock can distort in relation to the market. This is because investors may anticipate receiving dividends and therefore demand for the stock increases, causing its price to rise. This distortion can create opportunities for investors to profit from dividend arbitrage strategies. Therefore, the statement "The price of a stock can distort in relation to the market as dividend payment time draws near" is true.

Investors Europe does not provide investment and trading advice to the majority of its clients through its sales traders.

An American citizen cannot trade Forex at Investors Europe Mauritius or Gibraltar. Forex trading in the United States is highly regulated, and American citizens are required to trade with brokers that are registered with the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Investors Europe Mauritius and Gibraltar may not be registered with these regulatory bodies, making it illegal for American citizens to trade Forex with them. Therefore, the statement is false.

In stock markets, company dividends are typically paid net of withholding tax, which means that the tax is deducted at the source before the dividend is transferred to the investor. This is a common practice to ensure that the appropriate taxes are paid on the dividend income. Therefore, the statement "True" is correct.

The statement is true because settlement refers to the process of exchanging cash for financial instruments, such as stocks, after a transaction has been executed. Clearing, on the other hand, is the process of finalizing the transaction and ensuring that all obligations are met. In the context of futures, clearing involves the exchange of cash and the transfer of the futures contract to the buyer. Therefore, both settlement and clearing involve the exchange of cash for financial instruments after a transaction has taken place.

The given statement is true because the company's contract explicitly mentions that it will not pay interest on trading accounts. This implies that customers who have trading accounts with the company should not expect to receive any interest payments on their account balances.

Absolutely not. These days (November 2018) even the client's utility bill has to be certified if he does not send us the original. Check this out : http://www.investorseurope.com/due_diligence.html

ISIN stands for International Securities Identification Number (ISIN). It is an international numbering system set up by the International Organization for Standardization (ISO) to number specific securities, such as stocks (equity and preference shares), bonds, options and futures.

In some countries, corporate dividends are indeed subject to double taxation. The first tax is a withholding tax that is deducted at the source by the listed company before distributing dividends to shareholders. The second tax is levied on the capital gains made from the profits generated by the company. This means that the dividends are taxed once when they are received by shareholders and then again when the profits are realized as capital gains. Therefore, the statement that corporate dividends are taxed twice in some countries is true.

CFDs, or Contract for Difference, are indeed a margined product that allows traders to speculate on the price movements of an underlying stock without owning the actual asset. With CFDs, traders can profit from both rising and falling markets by taking long or short positions. The trader enters into a contract with a broker, agreeing to exchange the difference in the price of the underlying stock from the time the contract is opened to when it is closed. This means that CFDs are based on an underlying stock, making the statement "CFDs are a margined product, based on an underlying stock" true.

Investors Europe pays corporate tax in Mauritius because it is a financial services company based in Mauritius. As per the tax laws and regulations in Mauritius, all companies operating in the country are required to pay corporate tax. Therefore, it can be inferred that Investors Europe, being a company based in Mauritius, is also subject to paying corporate tax in the country.

The spread of a stock, currency, or any security refers to the difference between the bid and ask rates in the market. The bid rate represents the highest price a buyer is willing to pay for the security, while the ask rate represents the lowest price a seller is willing to accept. The spread is important because it represents the cost of trading and can vary depending on market conditions and liquidity. Therefore, the statement is true.

Market capitalization is the total value of a company's outstanding shares of stock. It is calculated by multiplying the current market price of a single share by the total number of shares listed. Since the market price of a stock can fluctuate throughout the trading day due to various factors such as supply and demand, market capitalization also changes accordingly. Therefore, it is true that market capitalization varies during the trading day.

Stocks, shares, and equities are indeed the same thing. They all represent ownership in a company or corporation. When an individual purchases stocks, shares, or equities, they become a partial owner of the company and have the potential to earn profits through dividends or capital appreciation. These terms are often used interchangeably in the financial world to refer to the same concept of ownership in a company.

CFDs (Contracts for Difference) are derivative products that allow traders to speculate on the price movements of various financial instruments, including stocks. While CFDs are commonly available for stocks, including penny stocks and companies with low capitalization, it is not accurate to say that they are always available for these types of stocks. The availability of CFDs depends on various factors, including the brokerage firm and the specific stock being traded. Additionally, the statement implies that all penny stocks and low-cap companies have high volatility, which is not always the case. Therefore, the correct answer is False.

The given statement is true. DVP stands for 'Delivery Versus Payment', which refers to a settlement method in financial markets. After execution, when a security is exchanged between parties, DVP ensures that the delivery of the security occurs simultaneously with the payment for it. This reduces the risk of one party fulfilling their obligation without the other party doing the same. Therefore, the statement is correct.

Technical analysis is a method of predicting future price movements in financial markets based on historical data, including price and volume. One of the tools used in technical analysis is the Fibonacci sequence, which is a series of numbers where each number is the sum of the two preceding ones. This sequence, discovered by Leonardo Fibonacci in 1202, is believed to have certain mathematical properties that can be applied to market analysis. Therefore, the statement that technical analysis is based partially on the Fibonacci sequence going back to 1202 is true.

The level of interest paid on a sovereign bond is directly related to the risk of default for that country. When a country has a higher risk of defaulting on its debt, investors demand a higher interest rate as compensation for taking on that risk. Conversely, countries with lower default risk can offer lower interest rates. Therefore, the level of interest (coupon) paid on a sovereign bond serves as an indicator of the country's risk of default.

Compliance Department

The given statement is incorrect. MT4 is not a well-known motorway north of London.

The given explanation is incorrect. GTC in a 'GTC Order' does not stand for Global Trustee Corporation. GTC actually stands for Good 'Til Cancelled, which is a type of order in the stock market that remains active until it is executed or cancelled by the investor.

Capital Gains Taxes are not levied on clients' trading profits when they trade via Investors Europe, even if they are not resident in Mauritius.

Non-U.S. entities that do not receive any money or income from the US are not subject to FATCA withholding tax. This means that if a foreign entity does not have any financial transactions or income sources in the US, they are not required to comply with FATCA regulations and are exempt from any withholding tax obligations. Therefore, the answer "True" is correct.

A small but regular transfer of money in or out of a trading account can be an initial indicator of money laundering activity. Money launderers often try to move small amounts of money frequently to avoid detection and suspicion. By doing so, they can disguise the illegal origin of the funds and make it appear as legitimate trading activity. Therefore, this statement is true as it highlights the potential connection between small and regular transfers and money laundering.

Yes http://www.mra.mu/index.php/taxes-duties/double-taxation-agreements

The statement suggests that the Rock Trader platform allows users to add tradeable and liquid securities from global stock markets. This implies that users can access a wide range of securities and trade them easily on the platform. Therefore, the answer is true.

The explanation for the given correct answer is that Spot Forex, which refers to the trading of currencies for immediate delivery, is generally considered an unregulated Non-MiFID (Markets in Financial Instruments Directive) product. However, in certain jurisdictions that have better regulations in place, Spot Forex may be partially regulated. This means that while there may be some level of oversight and regulation in these jurisdictions, it is not fully regulated under MiFID. Therefore, the statement "Spot Forex is generally an unregulated Non-MiFID product but is partially regulated in some of the better regulated jurisdictions" is true.

A Bottom up Approach refers to analyzing individual stocks or companies first and then using that information to make predictions about the overall market or economy. It involves looking at specific factors such as financial statements, management quality, and industry trends to assess the potential performance of a company. In contrast, a Top down Approach involves starting with the broader economic indicators and then drilling down to individual stocks or sectors. Therefore, the given statement that a Bottom up Approach means looking at the futures markets of a country upwards to its Macro Economy indicators is incorrect.

The explanation for the given correct answer is that based on the company's many years of experience, they have observed that if a client is abusive at the beginning of the commercial relationship, it tends to escalate and become worse over time. Therefore, the company has implemented a policy where clients who engage in unethical or untruthful behavior or insult staff are given two chances, and if they continue to exhibit such behavior, they are no longer allowed to do business with the company. This suggests that the statement "if a client is abusive it always gets worse" is true.

In Mauritius, there is currently no Investor Protection Scheme similar to the Financial Services Compensation Scheme (FSCS) in the UK. The FSCS provides deposit insurance and compensation for customers of authorized financial services firms. This means that if a firm in the UK is unable to pay claims against it, the FSCS can step in and provide compensation. However, in Mauritius, such a scheme does not exist, indicating that the statement "True" is correct.

Investors Europe Execution-Only Stock Brokers offers corporate and government bond trading to clients. This means that clients can buy and sell corporate and government bonds through this brokerage firm without receiving any advice or recommendations from the firm.

The explanation for the given correct answer, "True," is that the Chicago Mercantile Exchange (CME) is indeed one of the largest futures markets in the world for pork bellies. The CME offers trading in various commodities, including agricultural products, and pork bellies are one of the key commodities traded on the exchange. Traders can buy and sell futures contracts for pork bellies, which allows them to speculate on the future price movements of this specific commodity. Therefore, the statement is accurate in stating that the CME is a major futures market for pork bellies.

The statement "LSD stands for London Stock Exchange" is incorrect. LSD is not an abbreviation for London Stock Exchange. Therefore, the correct answer is False.

The statement is true because HNWI stands for High Net Worth Investor, which refers to individuals who have a high net worth, typically exceeding a certain financial threshold. These individuals are considered to be wealthy and have the financial capacity to invest significant amounts of money. Therefore, the correct answer is true.

The Company, as an execution-only stockbroker, does not have a portfolio of its own nor does it trade its own (proprietary) postions.

To stop paying withholding tax on corporate dividends at source, investors must register and provide their fiscal identity to the Tax Authorities where the dividends were issued. This is because the Tax Authorities need this information to ensure proper taxation and to track the dividends received by the investors. By registering and divulging their fiscal identity, investors can establish their eligibility for any tax exemptions or reductions that may apply to them. Therefore, the statement is true.

Investors Europe is privately owned, meaning it is not a public company and does not have a legal obligation to disclose its audited accounts to anyone except for the Financial Services Commission (FSC). Public and listed companies are required to disclose their audited accounts to their shareholders, but this does not apply to Investors Europe. Therefore, the statement is true.

Investors Europe has the capability to handle client asset executions if they are provided with instructions and given the authority by the client. This suggests that Investors Europe has the necessary expertise and systems in place to execute transactions on behalf of their clients.

Protects investors, especially retail investors.

The statement is true because it is indeed a criminal offense for an individual who possesses non-public information to engage in trading activities involving securities that can be affected by price changes. This is known as insider trading and is illegal because it gives the individual an unfair advantage over other investors who do not have access to the same information. Insider trading undermines the fairness and integrity of the financial markets, which is why it is considered a criminal offense.

The statement is false because the Mauritius law on anti-money laundering does legally protect the Company in respect of any breach of client confidentiality. This means that the law provides legal safeguards to ensure that client confidentiality is maintained and any breach of it can be legally addressed and punished.

Markets in Financial Instruments Directive (MiFID)

A Chinese Wall is indeed an artificial information exchange barrier created within a company to avoid conflicts of interest. It is typically implemented in financial institutions to separate departments that may have access to sensitive information, such as investment banking and research departments. This barrier ensures that confidential information is not shared inappropriately, preventing any potential conflicts of interest that may arise.

The potential loss of selling a naked option is not normally very limited, but rather can be unlimited. When an investor sells a naked option, they are obligated to fulfill the terms of the contract if the option is exercised. This means that if the market moves against them, they may have to buy or sell the underlying asset at a loss. Since there is no limit to how much the price of an asset can move, the potential loss from selling a naked option is not limited. Therefore, the correct answer is False.

The given statement is false because the company's AML Risk Matrix does not assess corporate default risk. AML stands for Anti-Money Laundering, which is a set of regulations and procedures aimed at preventing and detecting money laundering activities. The AML Risk Matrix is used to assess the risk of money laundering and terrorist financing within a company, not corporate default risk.

When an investor or speculator engages in a practice known as short selling, also called shorting a stock, he or she borrows shares of a company from an existing owner through his brokerage, sells those borrowed shares at the current market price, and pockets the cash.

At Investors Europe Stock Brokers, clients who purchase Contracts for Difference (CFDs) are required to pay interest on the exposure they have taken on through the leverage provided by their open positions. Leverage allows clients to control a larger position with a smaller amount of capital, but it also increases the risk and potential losses. Therefore, clients are charged interest on the borrowed funds used for leverage. This statement is true as it accurately reflects the practice followed by Investors Europe Stock Brokers.

The given statement is false. De-materialization of a stock is actually the process of converting physical paper shares into electronic form. It involves the elimination of physical stock certificates and the creation of electronic records for ownership and trading purposes. This process allows for easier and more efficient trading and settlement of stocks.

The given statement is false. A 'U.S. Person' is not defined as a person who is permanently resident at least 15 years inside the USA. The correct definition of a 'U.S. Person' is an individual who is a citizen or resident of the United States, including U.S. citizens living abroad, green card holders, and certain non-immigrant visa holders. The requirement of being permanently resident for 15 years is not accurate in defining a 'U.S. Person'.

The given statement is true. In Mauritius, the Company Manager, such as Juristax, is responsible for reporting to the Financial Services Commission (FSC) and representing Investors Europe in matters related to the FSC. This implies that the Company Manager acts as a liaison between Investors Europe and the FSC, ensuring compliance and representing the company's interests in regulatory affairs.

This statement suggests that there are no restrictions or regulations in place for transferring money into and out of Mauritius. This implies that individuals and businesses can freely send and receive international transfers without any currency controls or limitations. Therefore, the correct answer is True.

The company does not and cannot solicit or cold call potential clients anywhere in the world. The Company can cold call and solicit regulated financial institutions (e.g. regulated stock brokers) world wide. FATCA relates to US tax, not to the solicitation of clients.

The explanation for the given correct answer is that according to the US tax laws, individuals who are born in America are considered US citizens and are subject to US tax on their worldwide earnings for life, regardless of whether they reside in the US or not. Additionally, if a non-US person marries a US person, the US person is required to report and pay tax on a portion of their spouse's earnings made outside of America to the US IRS for life. Therefore, both statements (i) and (ii) are true.

Not Clear cut as there can be clashes between the Company's Compliance Regulations and Regulatory Laws and the requirements of Mauritius' Data Protection Act of 2017. Probably 6 or 7 years from from the day a client closes an account, assuming nothing untoward happened. If the client was shown to be less than truthful in his relations with the company or behaved in a manner that threatened the legitimate interests of the Company could and probably would keep the data as long as that threat existed.

A ‘U.S. Person‘ is defined as one who is permanently resident inside the USA.

The SEC’s interpretation of U.S. federal securities laws limits Non U.S. Broker-Dealers to working with those permanently resident outside the USA. Non U.S. broker-dealers cannot approach and/ or solicit U.S. resident persons because an Internet Web site is interpreted by the SEC as being the same as a telephone call to a client.

Non U.S. broker-dealers maintaining an Internet Web site can thus only accept a U.S. person if he or she has not been solicited either directly or indirectly through accessing their web sites under the ‘unsolicited’ exemption Rule 15a-6.

U.S. customers wanting to work with Non U.S. broker-dealers can thus only approach Non U.S. broker-dealers under Rule 15a-6 if they have not been to their web sites and should be prepared to certify this fact in writing to ensure compliance with applicable law. They should also be prepared to certify in writing that they have not been solicited by the company in any manner either directly or indirectly.

Always keep the Sales Traders informed.

Atlas Trader also offers stocks and many other securities.

The bid rate is the rate at which an individual investor would be able to sell a security, not buy. When an investor wants to sell a security, they would receive the bid rate, which is the highest price that a buyer is willing to pay for that security. Therefore, the statement is false.

The given statement is false. IPO stands for Initial Public Offering, which is the process by which a privately held company offers its shares to the public for the first time. It is a way for companies to raise capital by selling ownership stakes to investors. It has nothing to do with financing the launch of new ships onto world equity markets.

Speed to Market is Most Important. Give Absolute Priority to an existing client's executions to avail him of any opportunities he might lose were you to take too long to respond to him.

The Company is execution-only which means just that. Give NO advice of any kind to a client.

Banking secrecy still exists in Mauritius, meaning that the information regarding bank accounts in the country is kept confidential. In order for a third party, such as the police, to access and examine a Mauritius bank account, they would need to obtain a Court Order for authorization. This ensures that the privacy and confidentiality of individuals' financial information is protected, and prevents unauthorized access to bank accounts without proper legal procedures.

The explanation for the given correct answer is that both Introducing Broker (IB) and Introducing Agent (IA) are typically not regulated activities. This means that they are not subject to specific regulations or oversight by regulatory authorities. IBs and IAs act as intermediaries, introducing clients to financial products or services, but they do not engage in direct trading or provide investment advice. As a result, they are not required to meet the same regulatory standards as other financial institutions or professionals.

The statement suggests that the US is likely the largest offshore jurisdiction globally. This means that the US is a popular destination for individuals and businesses to establish offshore accounts or entities to take advantage of tax benefits, financial privacy, or other advantages. This could be due to the country's robust financial system, strong legal framework, and favorable regulations.

London can be considered an offshore jurisdiction in certain situations because it offers certain advantages to individuals and businesses looking to minimize their tax liabilities or protect their assets. Offshore jurisdictions are typically known for their favorable tax laws, confidentiality, and asset protection measures. London, being a global financial hub, attracts many foreign investors and businesses who may choose to establish offshore entities or utilize offshore banking services to take advantage of these benefits. However, it is important to note that not all aspects of London can be classified as offshore, as it also operates within the regulatory framework of the United Kingdom.

A limit order is used by traders to specify the maximum price they are willing to pay when buying stocks. It is placed below the current market price, allowing traders to potentially buy stocks at a lower price. This strategy is used to ensure that traders do not overpay for stocks and to take advantage of potential price dips. Therefore, the statement that a limit order is used to buy stocks above the current market price to profit from market momentum is false.

Yes, so you can see which platform is best for him but he has to choose the platform because if it goes wrong, he may try to blame you for having given him bad advice.

The statement is false because the beneficial owner of a company cannot trade his account immediately after opening it without any restrictions. There are usually certain regulations and processes in place that need to be followed before trading can occur. These may include completing necessary paperwork, providing identification and proof of ownership, and complying with any applicable laws and regulations. Therefore, there are restrictions on trading for the beneficial owner of a company, and they cannot trade their account immediately after opening it.

The explanation for the given correct answer is that under the US FATCA (Foreign Account Tax Compliance Act) withholding tax, the tax rate is applied to the value of the transaction or payment, rather than being based on the profits involved. This means that regardless of whether the transaction or payment results in a profit or loss, the withholding tax rate remains the same at 30% of the value.

Spot Forex is not a regulated activity in Gibraltar.

Clients can use a bank statement as a proof of residence, provided that it is certified as a true copy of the original or the actual original is sent to the Company with a signed hard copy of the account opening documents.

Data Protection is a fundamental component of today’s society and the development of good data protection practices contributes to trust in our services. Though we are living in an era of rapid technological and social change, we must ensure that our clients' privacy rights and entitlements are properly protected from abuse by any authority.

Salesforce is a software platform that is commonly used for customer relationship management (CRM). It provides a centralized database where sales professionals can input and manage information about leads and potential clients. By diligently adding information to Salesforce, salespeople can effectively track and nurture leads, manage sales pipelines, and ultimately increase their chances of closing deals. Therefore, the statement is true.

The statement is false because the strike price of an option contract is the predetermined price at which the underlying asset can be bought or sold when exercising the option. It is not the price one will pay to buy or sell the option contract itself. The option contract itself has a premium that is paid to the seller of the option, separate from the strike price.

The given statement is false. A margin call is not a formal notification to a client to reduce his cash balance or increase his exposure to the markets. Rather, a margin call is a demand from a broker to a client to deposit additional funds into their margin account in order to meet the required margin level. This is usually done when the value of the client's investments has decreased and the margin account falls below a certain threshold.

Technical analysts use technical analysis to analyze historical price and volume data of a security in order to identify patterns and trends. They do not rely on intrinsic value or fundamental analysis to forecast the direction of a security's price. Instead, they focus on the study of charts, indicators, and other technical tools to make predictions about future price movements. Therefore, the statement that technical analysts use technical analysis for the intrinsic bottom-up value of a security to forecast its price direction is false.

The Foreign Account Tax Compliance Act (FATCA) is designed to combat tax evasion by U.S. persons holding investments overseas. Certain U.S. taxpayers holding specified financial assets outside the United States must report those assets to the IRS via the jurisdiction in which they are held. Minimum to be reported USD 50.001

Investors Europe offers a Custody Account with MCB in Mauritius, allowing investors to trade on the Stock Exchange of Mauritius. This implies that the statement is correct, as it accurately describes the services provided by Investors Europe.

A trailing stop is a type of order that moves the stop loss price as the position becomes more profitable, not the "stop out" price. The stop out price refers to the level at which a trade is automatically closed out, typically due to insufficient margin. Therefore, the given statement is false.

HFT stands for High Frequency Trading, which involves using a large number of computers connected together to trade at a faster pace than other investors. This technique is often employed in a 'dark pool' where trades are executed privately. Therefore, the statement is true.

Trade confirmations should be issued by the Back Office, not the Front Office. The Back Office is responsible for processing and settling trades, which includes generating trade confirmations to provide clients with details of their transactions. The Front Office, on the other hand, is primarily focused on client-facing activities such as sales and trading. Therefore, it is incorrect to say that trade confirmations should be issued by the Front Office.

The statement is false because the company's benchmark Mifid does not classify clients as either Retail or Professional.