Common use of Elective Professional Client Clause in Contracts

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.

Appears in 4 contracts

Samples: CFDS Client Agreement, CFDS Client Agreement, CFDS Client Agreement

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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.

Appears in 3 contracts

Samples: CFDS Client Agreement, CFDS Client Agreement, CFDS Client Agreement

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