Elective eligible counterparties - COBS Provision: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 2: | Line 2: | ||
{{mifid categorisation}} | {{mifid categorisation}} | ||
The famous | The famous “{{cobsprov|elective ECP}}” categorisation: | ||
*Many {{cobsprov|per se professional client}}s are also {{cobsprov|per se eligible counterparties}} | *Many {{cobsprov|per se professional client}}s are also {{cobsprov|per se eligible counterparties}} — but not all. | ||
*Those {{cobsprov|per se professional client}}s that are not {{cobsprov|per se eligible ECP}}s | *Those {{cobsprov|per se professional client}}s that are not {{cobsprov|per se eligible ECP}}s — i.e., 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 ECP without them first requesting it. | ||
*an "elective professional client" (ie one is able to be | *an "[[elective professional client]]" (ie one is able to be upgraded from retail to professional) cannot further request to be treated as an {{cobsprov|ECP}}. | ||
Revision as of 17:19, 5 November 2018
|
The JC’s Reg and Leg resource™
UK Edition
|
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:
- 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 — i.e., 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 ECP without them first requesting it.
- an "elective professional client" (ie one is able to be upgraded from retail to professional) cannot further request to be treated as an ECP.