Elective Professional Client Sample Clauses
The Elective Professional Client clause defines the process and criteria by which a client can be classified as a professional client at their own request, rather than being treated as a retail client. This typically involves the client meeting certain experience, knowledge, and financial thresholds, and formally agreeing to forgo some of the regulatory protections afforded to retail clients. The core function of this clause is to allow sophisticated clients greater flexibility and access to a wider range of financial products and services, while also shifting some responsibility for risk assessment from the service provider to the client.
Elective Professional Client. Clients other than those mentioned in paragraph 1 (Professional clients per se) may be treated as professionals on request. The Company is allowed to treat any of the Retail Clients as Professional provided the relevant criteria and procedure mentioned below are fulfilled. Any waiver of the protection afforded by the standard conduct of business regime will be effected only if an adequate assessment of the expertise, experience and knowledge of the Client, undertaken by the Company, gives reasonable assurance, in light of the nature of the transactions or services envisaged, that the Client is capable of making his own investment decisions and understanding the risks involved. The fitness test applied to managers and directors of entities licensed under Directives in the financial field could be regarded as an example of the assessment of expertise and knowledge. In the case of small entities, the person subject to the above assessment should be the person authorised to carry out transactions on behalf of the entity. In the course of this assessment (fitness test), as a minimum, two of the following criteria should be satisfied:
(a) the Client has carried out transactions, in significant size on the relevant market at an average frequency of 10 per quarter over the previous four quarters;
(b) the size of the Client’s financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 500 000;
(c) the Client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged. Before deciding to accept any request from a Retail client to be categorized as Professional, the Company is required to take all reasonable steps to ensure that the Client requesting to be treated as a Professional Client meets the relevant requirements stated above. In this respect, the Company may request supporting documents to serve as proof on the above criteria such as (this is not an exhaustive list) bank statements, reference letter from employer, trading history statement, etc.
Elective Professional Client. If you have been classified as a Retail Client, you may request a reclassification as an “Elective Professional Client” in accordance with MiFID II and the Client Classification rules as set out in the Conduct of Business Rules (“COBS”) in the Handbook. Should you wish to request this alternative classification and your request be successful, we will have determined that you have sufficient experience and understanding to be classified as an Elective Professional Client. Schedule 2 to this Agreement details a written warning of the regulatory protections you will lose should your request for reclassification be successful. Further, signing the “Request for reclassification and further declarations” section of our “Elective Professional Client Application Form” will be treated as your understanding of your loss of protections and consent to reclassification as an Elective Professional Client. Our response to your request for reclassification will be notified to you (in writing or by email) further to our assessment of your eligibility.
Elective Professional Client are: For an Elective Professional Client, the client must meet the certain criteria as required by the FCA. These • A client must pass a “Qualitative test” and we must assess their knowledge, experience and expertise to ensure they are capable of making their own investment decisions. • A client must also satisfy a “Quantitative test” and satisfy 2 of the following where applicable: o Client has carried out transactions, in significant size and averaged a frequency of over 10 trades per quarter in relevant market over the period of the last 12 months; o Value of investment portfolio and cash investments over EURO 500,000; o Be employed or had been employed in the relevant financial sector for over a year in a professional position which requires knowledge of the transactions or services envisaged;
Elective Professional Client. A client, other than a local public authority or municipality, will be treated as an “elective” professional client, only at their request, and if we comply with 4.(1) and 4.(3) and, where applicable, 4.(2):
1) the client can evidence retention of the minimum requirements that we require in relation to expertise, knowledge and experience of trading in complex financial instruments (otherwise known as the “qualitative test”). Our adequacy assessment of these observable client actions provides us with reasonable assurance that the client can make their own investment decisions and understand the risks involved in such activity;
2) in relation to ▇▇▇▇▇/third country business, two of the below are satisfied (otherwise known as the “quantitative” test):
a. the client has carried out transactions on the relevant market at an average frequency of 10 per quarter over the past four quarters;
b. the size of the client’s financial instrument portfolio (defined as including cash deposits and financial instruments) exceeds EUR 500,000;
c. the client works or has worked in the financial sector for at least one year in a professional position, in which requires knowledge of the transactions or services envisaged; and We reserve the right to request independent documentary evidence to support the above criteria. We will not permit clients to receive the elective classification to “professional” client if these criteria are not met.
3) the following procedure is followed:
a. the client states in writing to us that they wish to be treated as a “professional” client, either generally or in respect of a particular service or transaction, or type of transaction or product;
b. we give the client a clear written warning of the protections and investor compensation rights that the client may lose as a result of their reclassification request; and
c. the client states in writing, in a separate document from the contract, that they are aware of the consequences of losing such protections.