Client Categorisation Flashcards
1
Q
Customer / Client / Consumer
A
Customer = Retail and Professional
Client = Retail, professional and Eligible counterparty
Consumer = Retail client that is also natural person
2
Q
Professional Clients two types
A
Per se - natural portion
Elective = asked to be treated
3
Q
Examples of Per se professional clients
A
Authorised / regulated firm
Government , central bank , Supranational
Special Purpose Vehicles
Large undertaking;
Two at least;
- Balance sheet 20m euros
- Net turnover 40m euros
- Own funds 2m euros
4
Q
Recatgorising professional clients
A
Retail to Pro
- Qualitaitve test (all business)
expertise, experience and knowledge
Quantitative test (MIFID Business only)
- 10 per quarter over previous 4 quarters
- > 500k euros
- Works in financial sector
- Written intent from client
- warning lost protection
5
Q
Agents
A
Agent should be regarded as client if acting as the person who is dealing
