Client Categorisation Under MiFID II Clause Samples
The Client Categorisation Under MiFID II clause defines how a financial services provider classifies its clients according to the categories set out in the Markets in Financial Instruments Directive II (MiFID II), such as retail clients, professional clients, or eligible counterparties. This classification determines the level of regulatory protection and disclosure the client receives, with retail clients receiving the highest level of protection and eligible counterparties the least. By clearly establishing the client's category, the clause ensures that the firm complies with regulatory requirements and that clients are aware of their rights and protections, thereby promoting transparency and reducing the risk of misunderstandings.
Client Categorisation Under MiFID II. 7.1 As per MiFID II the Company’s clients shall be categorised in three (3) categories intended to reflect both client’s level of knowledge, experience and expertise in the financial markets and their ability to understand and take on the risks arising from their investment decisions, in order to adopt protective measures to the particularities of each category of investor. In compliance with such requirements imposed under MiFID II, we categorise our clients in the following three
Client Categorisation Under MiFID II. 28.1. As per MiFID II the Company’s clients shall be categorised/classified in three (3) categories intended to reflect both client’s level of knowledge and experience in the financial markets and their ability to understand and take on the risks arising from their investment decisions, in order to adopt protective measures to the particularities of each category of investor. In compliance with such requirements imposed under ▇▇▇▇▇ ▇▇, we categorise/classify our clients in the following three (3) categories:
a. Eligible Counterpart(y)ies (“ECP(s)”): a category that includes: (a) per se eligible counterparties (i.e., entities automatically treated as eligible counterparties), such as investment firms, credit institutions, insurance companies, undertakings for the collective investment of transferable securities (“UCITS”), pension funds and national governments, as well as, (b) entities that may be treated as eligible counterparties with their consent, such as large undertakings (that meet specified size tests) and clients who may be treated as ECPs in accordance with the prescribed opt-up criteria; recognition by the MiFID II Member State in which they are established is required for the latter entities to be treated as ‘ECP’; for this type of customer MiFID II provides for a basic level of protection since these are entities that by their very nature must operate directly and frequently in the financial markets;