General classification of clients in accordance with the applicable financial regulatory framework.
The European MiFID II framework establishes a general classification of clients based on their experience, knowledge and ability to assess risks. This classification affects the level of information provided and certain regulatory safeguards applicable to the provision of financial services.
1. Retail clients
Includes natural persons or entities that do not meet the criteria to be considered professional clients. In this category, more detailed information requirements and certain additional regulatory safeguards apply.
Characteristics:
Receive more detailed information on the characteristics and risks of the products or services.
Are subject to higher information obligations on the part of the service-providing entities.
Benefit from certain regulatory safeguards provided for under the applicable regulations.
2. Professional clients
Includes entities or persons who, in accordance with the regulations, possess the experience, knowledge and capacity necessary to adequately assess the risks associated with financial services.
Examples of professional clients may include, among others:
Companies that meet certain financial criteria established by the regulations.
Financial institutions such as banks or insurance companies.
Clients who demonstrate sufficient experience and knowledge in accordance with MiFID II.
Compared to retail clients:
Less detailed information requirements apply.
They may access certain services or products subject to specific criteria.
A greater ability to understand the associated risks is presumed.
3. Eligible counterparties
Includes certain institutions that operate regularly in the financial markets and that, in accordance with the regulations, are subject to a specific regime with more limited information requirements.
Examples of eligible counterparties include, among others:
Financial institutions and banks.
Large investment firms.
Governments and central banks.
Client reclassification
Under certain conditions, the regulations allow a request for a change of category:
A retail client may request to be treated as a professional client if the established requirements are met.
A professional client may request to be treated as a retail client in order to benefit from enhanced information requirements.
This classification is intended to adapt certain information requirements and regulatory safeguards to each client’s profile, in accordance with the applicable regulations.
For any questions regarding the assigned category, additional information may be obtained through the channels made available on the platform.for you, consult a specialised financial advisor.