Per Se Professional Client
Per Se Professional Client (client considered to be professional) – is a client who possesses the necessary knowledge and experience to make their own investment decisions and properly assess the risks that it incurs.
By law, entities which are required or regulated to operate in the financial markets: Credit institutions, investment firms, other authorized or regulated institutions, insurance companies, collective investment schemes, pension funds, commodity and commodity derivatives dealers, locals, other institutional investors.
Large undertakings meeting two of the following size requirements on a company basis:
- Balance sheet total: EUR 20 000 000
- Net turnover: EUR 40,000,000
- Own funds: EUR 2,000,000
National and regional governments, including public bodies that manage public debt at national or regional level, Central Banks, international and supranational institutions such as the World Bank, the IMF, the ECB, the EIB and other similar international organisations.
Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitisation of assets or other financing transactions.
Elective Professional Clients
Elective Professional Client is a Retail Client who may be treated as a Professional on individual request sent from the Client to the Company. The client has to pass the test and in the course of assessment, as a minimum, 2 of the following criteria shall be satisfied:
- 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.
- The size of the client’s financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 500 000.
- 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.
The company may ask for supportive documents confirming the abovementioned criteria.
Eligible counterparty is a type of professional Clients, further, the Eligible Counterparty category is applicable only for the following investment services:
- Reception and transmission of Client orders
- Execution of orders on behalf of Clients
Retail Client is a Client who is not a Professional Client by default. It is noted that Retail Clients are afforded with the highest level of protection. Which include the following:
- Negative Balance Protection sets a limit on the maximum losses. This ensures that the investor will never lose more than the total sum of the amount invested.
- Investment protection by the ICF compensation scheme up to the value of 20,000 EUR.
Type of request for Different Categorisation:
The following requests may be submitted to the Company should a Client wish to change its categorisation:
a) A Retail Client can request to be categorised as a Professional Client. The Client therefore accepts a lower level of protection.
b) A Professional Client can request to be categorised as a Retail Client. The Client therefore obtains a higher level of protection. A Professional Client can request to be treated as an Eligible Counterparty, obtaining therefore a lower level of protection.
c) An Eligible Counterparty can request to be categorised as a Professional Client or a Retail Client. The Client therefore obtains a higher level of protection.
It is noted that the Company is not required to agree with a request for non-professional or non-Eligible Counterparty treatment. In addition, the Company may, on its own initiative, treat as a Professional or Retail Client an Eligible Counterparty or treat as a Retail Client a Professional Client.