CLIENT CATEGORIZATION UNDER MIFID Sample Clauses
CLIENT CATEGORIZATION UNDER MIFID. 28.1 The Directive of the European Parliament and of the Council of 21 April 2004 on Markets in Financial Instruments (hereinafter referred to as the “Markets in Financial Instruments Directive” or “MiFID”) establishes a client categorization/classification regime in three (3) categories intended to reflect both customers’ 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 adapt protective measures to the particularities of each category of investor. In compliance with such requirements imposed under MiFID, we categorize/classify our clients in three (3) main 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 Professional Clients in accordance with the prescribed opt up criteria; recognition by the MiFID Member State in which they are established is required for the latter entities to be treated as ‘Eligible Counterparties’; for this type of customer MiFID 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;
CLIENT CATEGORIZATION UNDER MIFID. 28.1 The Directive of the European Parliament and of the Council of 21 April 2004 on Markets in Financial Instruments (hereinafter referred to as the "Markets in Financial Instruments Directive" or "MiFID") establishes a client categorization/classification regime in three 3 categories to reflect both customers' level of knowledge and experience in the financial markets as well as their ability to manage risk. We categorize/classify our clients into 2 categories, in order to comply with ▇▇▇▇▇'s requirements:
a. Eligible Counterpart(y)ies (“ECP(s)”): a category that includes both (a) eligible counterparties (i.e., entities that are 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, and (b) entities that may be treasury counterparties.
b. Professional Clients: a category that includes all of the entities that fall under the ‘Eligible Counterparty' category mentioned above (such as investment firms, credit institutions, insurance companies, undertakings for collective investment in transferable securities (UCITS), pension funds, and national governments), as well as a few others, such as ‘institutional investors whose main business is to invest in securities'.
28.2 MiFID also specifies objective criteria, which we used in carrying out the classification and reporting the results to individual clients, and which it has incorporated into our client classification policy. We assign varying degrees of regulatory protection to each group, and thus to clients within each category, in accordance with the standards required by MiFID. Professional Clients and Eligible Counter Parties, in particular, are provided the maximum regulatory protection; Retail Clients and Eligible Counter Parties are regarded to be more experienced, knowledgeable, and smart, and hence are afforded fewer regulatory protections.
28.3 The categorization/classification assigned to each client shall be communicated to them in writing. Any such categorization/classification, as well as any communication of it, shall be valid and applicable to all of the client's accounts with us. Please note that unless we qualify or reclassify you as a "Professional Client" or a "Eligible Counterparty" based on the information you provide during the registration process or later, you will be considered as a "Retail Client."
CLIENT CATEGORIZATION UNDER MIFID. 28.1 The Directive of the European Parliament and of the Council of 21 April 2004 on Markets in Financial Instruments (hereinafter referred to as the "Markets in Financial Instruments Directive" or "MiFID") establishes a client categorization/classification regime in three (3) categories to reflect both customers' level of knowledge and experience in the financial markets as well as their ability to manage risk. We categorize/classify our clients into three