APPLICATION FOR A REQUIREMENT ON PART 4A PERMISSION

To:
Anusha O'Donoghue, The Financial Conduct Authority ("the Authority")

25 The North Colonnade, Canary Wharf, London E14 5HS

Plus500UK Limited ("Plus 500") hereby applies for the imposition of requirements on its
permissions, pursuant to Section 55L(5)(a) of the Financial Services and Markets Act
2000 ("FSMA") as set out in the Schedule below.

1

SCHEDULE

1. This schedule sets out the terms of a requirement to be imposed on Plus 500

pursuant to Section 55L(5)(a) of FSMA with immediate effect.

(i)
in relation to existing clients, prohibit all account activity unless and until it
has (a) advised all active clients in writing by midnight 15 May 2015 to the
most recent email and/or postal address that they are required to
complete a new questionnaire and, where applicable, provide additional
customer due diligence documentation; and (b) advised all clients which
are not active clients in writing by midnight on 26 May 2015 to the most
recent email and/or postal address that they are required to complete a
new questionnaire and, where applicable, provide additional customer due
diligence documentation; (c) received the completed questionnaire and
any additional customer due diligence that may be required to ensure
compliance with procedures and the Money Laundering Regulations 2007;

(ii)
in relation to new clients, not take on any new clients after 12.00 am on
Friday, 15 May 2015 unless and until it has implemented new AML
procedures which enable Plus 500 to verify those customers' due diligence
information in accordance with procedures and the Money Laundering
Regulations 2007;

(iii)
in relation to new clients, not take on any new clients unless and until it
has taken all necessary steps to ensure that its assessment of a client's
appropriateness complies with COBS, in particular COBS 10;

(iv)
take all reasonable and necessary steps to ensure that all future financial
promotions (including financial promotions made via Plus 500's website)
which are issued and capable of having effect in the UK (a) are balanced,
fair, clear and not misleading; and (b) comply fully with the Conduct of
Business Sourcebook ("COBS").

3. For the avoidance of doubt:

(a)
"prohibit all account activity" means 'freeze accounts' to prevent any
further deposits, all trading activity or withdrawals;

(b)
"active clients" means all Plus 500 clients who have traded at least once
in the last three months;

(c)
"procedures" refers to revised procedures which include revisions made
to Plus 500's AML policies and procedures following implementation of
the recommendations set out in section 5 of the draft section 166 report
dated 27 April 2015 (and any subsequent recommendations made by
Kinetic Partners LLP and/or the FCA).

4. An exception to the requirement in paragraphs 2(i) is that Plus 500 may permit
(i) existing clients with open positions but who have not completed a
questionnaire and provided additional customer due diligence to close these on a
business as usual basis, including adding variation margin funds if necessary prior
to closure, but thereafter, all account activity, including the withdrawal of funds
by the customer, must be prohibited until adequate customer due diligence
information is provided by the customer and verified by Plus 500 in accordance
with procedures and the Money Laundering Regulations 2007; and (ii) existing
clients who have completed a questionnaire and provided any required additional
customer due diligence to continue with all trading activity pending the skilled
person review referred to in paragraph 5 below.

5. The existing skilled person (Kinetic Partners LLP) will review the steps taken by

Plus 500 in compliance with paragraph 2(ii) above. A new skilled person will
review the steps taken by Plus 500 in compliance with paragraph 2(i) above. The
new skilled person will be appointed by Plus 500 under section 166 of FSMA
subject to a timescale to be approved by the Authority.

6. Mr Mark Winton (Chief Executive) will attest to the Authority that Plus 500 has
taken the remedial action set out in paragraphs 2(i), (ii) and (iii) above. Mr
Gareth Derbyshire (Head of Compliance) will attest to the Authority that Plus 500
has taken the remedial action set out in paragraph 2(iv) above.

This r·equirement will remain in force until (i) the skilled persons appointed under
paragraph 5 above have reviewed the remedial action taken by Plus 500 and confirmed
to the Authority that Plus 500 has complied with the terms of the requirement set out at
paragraphs 2(i) and (ii) above; and (ii) the attestations referred to in paragraph 6 above
have been provided to the Authority.

2

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3

Plus 500 UK Limited

APPLICATION FOR A REQUIREMENT ON PART 4A PERMISSION

To: Charles Owens, The Financial Conduct Authority ("the Authority")

25 The North Colonnade, Canary Wharf, London E14 5HS

Plus 500 UK Limited ("Plus 500") hereby applies for a requirement to be
imposed on Plus 500, pursuant to Section 55L (5) (a) of the Financial Services
and Markets Act 2000 ("FSMA") as set out in the Schedule below.

SCHEDULE

1.
This schedule sets out the terms of a requirement to be imposed on Plus

500 pursuant to Section 55L (5) (a) of FSMA with immediate effect.

2. The requirement is that Plus 500 must:

(a)
prohibit all account activity of existing customers; and

(b)
not accept deposits from or open accounts for new customers

until it has obtained and verified those customers' due diligence information in
accordance with the Money Laundering Regulations 2007.

3. For the avoidance of doubt:

(a)
"prohibit all account activity" means 'freeze accounts' to prevent further
deposits, trading activity or withdrawals.

(b) The requirements in paragraph 2 do not apply to the accounts of customers
for whom Plus500 has obtained and verified adequate customer due diligence
information.

4. An exception to the requirement in paragraph 2(a) is that Plus 500 may
permit customers with open positions to close these on a business as usual
basis, including adding variation margin funds if necessary prior to closure, but
thereafter, all account activity, including the withdrawal of funds by the
customer, must be
prohibited
until adequate customer due diligence

information is provided by the customer and verified by Plus 500 in accordance
with the Money Laundering Regulations 2007.

This requirement will remain in force until Plus 500 has satisfied the Authority
that it is operating in compliance with the Money Laundering Regulations 2007
and SYSC 6.1.1 and SYSC 6.3 .

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