Elective eligible counterparties - COBS Provision: Difference between revisions

Revision as of 16:14, 13 May 2015

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.

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 The famous "{{cobsprov|elective ECP}}" categorisation. As you'll see from the snapshot below:
 *Many {{cobsprov|per se professional client}}s are also {{cobsprov|per se eligible counterparties}} - but not all.