ETFs PAC | the Automatic Plan for the Informed and Independent Investor | Terms and Regulations

Through ETFs PAC it is possible to schedule a recurring investment in ETFs, by choosing the date and the amount you want to invest.

Activation of the Service

The service is accesible directly from the dLite menu at ETFs PAC item.
To activate it, it is necessary to select the desired ETFs from the list, set the desired amount for each ETF choosen and schedule the sending dates for the orders. On the established dates the orders will be sent for the defined amount in the Closing Auction.

We remind you that ETFs are complex products. It is necessary to read the KID document of each product that you intend to include in the ETFs PAC in order to be fully informed about the characteristics and the risks.

The ETFs PAC remain active until the Customer decides to suspend or delete it. It is possible to delete it in the same point where it was activated, from the ETFs PAC item present in the dLite menu. It is necessary and recommended to periodically check that the amounts invested are in line with the investment objectives. The Customer will receive an email notification for each executed order within the ETFs PAC plan.

Orders sending dates

The Customer can choose for each ETF when the orders will be sent to the market:

in the closing auction on the first working day of every month
in the closing auction on the first working day from the 15th (included) of every month
on both these dates

Orders will be sent in the closing auction.

In the event that the first or fifteenth day of the month falls on a Saturday, Sunday or a holiday, the order will be sent on the first following open market day.

On the days set for the sending of orders, the ETFs PAC cannot be changed or deleted between 5.00 pm and 6.00 pm.

Scheduled orders management

The order sending price is established through an algorithm developed by Directa, the number of Etfs to buy will be the one obtained by dividing the amount set by that price, rounded down.

There may be cases where Directa chooses, for certain ETFs, to use an aggregate order. In this case, the execution will be given to the individual Customer following the chronological order of creation of the plan(and of the ETFs addition in the plan).

- In case of TOTAL EXECUTION of the aggregated or individual order, each customer will be assigned the ordered quantity.

- In case of NON-EXECUTION of the aggregated or individual order, the order will be sent the following open market day. If not executed even this second time, it will be sent on the next scheduled date. In the event of changes on the plan before the second sending of the order, the changes will be effective from the next selected date (not for the same day).

- In case of PARTIAL EXECUTION FOR AGGREGATE ORDERS, the securities will be assigned in chronological order of plan creation. For who should remain excluded from the allocation, an order will be sent for each account in the next market open day.

- In case of PARTIAL EXECUTIONS OF INDIVUDUAL ORDERS, an order will be sent for the remaining quantity the following market open day. In the event of changes on the plan before the second sending of the order, the changes will be effective from the next selected date (not for the same day).

The list of products included in the PAC is defined by the issuer. The price determination system is consistent across all products and is designed to keep the price aligned with the market quotations of the securities.
For less liquid instruments, there is a risk of non-execution. Directa cannot modify the price calculation system for these orders. Increasing the price for certain products to improve execution chances could result in placing an order that is no longer in line with the most recent trades on the order book and less favorable to the client.

Checks on the orders sending

Account Availability Check

In the event that, on the specified date for orders sending, the balance on the trading account is not sufficient to process all orders outlined in the plan, the following procedure will be followed:

Orders will be initially arranged in chronological order based on the PAC creation time, and secondarily, for PACs created simultaneously, orders will be sorted by decreasing countervalue.

For the orders sending, chronological priority will be adhered to, and in cases of equal chronological priority, orders with a higher counter value will take precedence. Orders will be selected in their entirety until the available funds on the account are reached (or the best approximation below).

There is no provision for splitting preset orders. Any remaining orders will be excluded from submission and will not be sent until the next scheduled date according to the plan.

Example

ETFs PAC Composition	Orders Amount
ETF1	€ 1,500
ETF2	€ 900
ETF3	€ 400
ETF4	€ 100
ETF5	€ 50
ETF6	€ 50
If only € 2,000 of the € 3,000 required are available on the trading account, applying the criterion described above, the following orders will be selected for sending: € 1,500 on ETF1, € 400 on ETF3 and € 100 on ETF4. On the other hand, the following will be excluded: € 900 on ETF 2, € 50 on ETF 5 and € 50 on ETF6. These orders will be sent on the next date as defined in the plan.

Product Governance Check

At each sending of the orders, Directa will carry out the required checks of product governance and target market on the selected instruments. If a difference between the current situation and the situation confirmed by the Customer during the plan composition is detected, the orders for the instruments showing this difference will not be sent and a reconfirmation of the plan will be requested.

If the plan is not reconfirmed, it will therefore be possible that some of the orders will not be sent.

In the event that the Customer selects an ETF that has yellow traffic light at the time of the plan composition validation, he will be notified that the product is not in line with his risk profile and will have to confirm that he intends to proceed. After the confirmation, the order on this ETF will be sent to market on the established dates.

In the event that the Customer adds an ETF with green traffic light into the plan and this ETF should then turn out to be yellow or red at the time of the order sending:
- with red traffic light: the order on this ETF will not be sent to the market
- with yellow traffic light: the Customer will have to reconfirm the plan in order to proceed

Orders suitability Check

Verification of order suitability has to be done at the time of the order sending. It is therefore not possible to do it during the plan composition. If the order is not appropriate to the risk profile, it will not be sent.

The Customer can monitor the plan by receiving information notices that will be automatically sent to the email address connected to the trading account.

A summary section of the orders status is also available on ETFs PAC - Hystory.