Elective eligible counterparties - COBS Provision: Difference between revisions
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{{cobsanat|3.6.4}} | |||
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*Those {{cobsprov|per se professional client}}s that are not {{cobsprov|per se eligible ECP}}s - ie that are {{cobsprov|elective ECP}}s - can only be treated as {{cobsprov|ECP}}s if ''they'' have requested this categorisation. Now one might, of course, gently put that idea in such a client's head: nothing wrong with that. Politely suggesting an elective ECP might wish to think about requesting an upgrade is one thing - but one cannot unilaterally categorise an elective ECP as an ECPwithout them first requesting it. | *Those {{cobsprov|per se professional client}}s that are not {{cobsprov|per se eligible ECP}}s - ie that are {{cobsprov|elective ECP}}s - can only be treated as {{cobsprov|ECP}}s if ''they'' have requested this categorisation. Now one might, of course, gently put that idea in such a client's head: nothing wrong with that. Politely suggesting an elective ECP might wish to think about requesting an upgrade is one thing - but one cannot unilaterally categorise an elective ECP as an ECPwithout them first requesting it. | ||
*an "elective professional client" (ie one is able to be ugraded from retail to professional) cannot further request to be treated as an {{cobsprov|ECP}}. | *an "elective professional client" (ie one is able to be ugraded from retail to professional) cannot further request to be treated as an {{cobsprov|ECP}}. | ||
Revision as of 17:18, 5 November 2018
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The JC’s Reg and Leg resource™
UK Edition
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MiFID Categorisation
- Professional clients: per se professional client | elective professional client
- ECPs: per se eligible counterparty | elective eligible counterparty | COBS 1 Annex 1 for disapplication of COBS rules to ECPs
- Retail client: See COBS 3.4: one who is not a professional client or an ECP
- Categorisation decision tree (pdf)
The famous "elective ECP" categorisation. As you'll see from the snapshot below:
- Many per se professional clients are also per se eligible counterparties - but not all.
- Those per se professional clients that are not per se eligible ECPs - ie that are elective ECPs - can only be treated as ECPs if they have requested this categorisation. Now one might, of course, gently put that idea in such a client's head: nothing wrong with that. Politely suggesting an elective ECP might wish to think about requesting an upgrade is one thing - but one cannot unilaterally categorise an elective ECP as an ECPwithout them first requesting it.
- an "elective professional client" (ie one is able to be ugraded from retail to professional) cannot further request to be treated as an ECP.