The relevant legislation requires the Company to classify its Customers into one of the following three (3) Categories; retail, professional or eligible counterparty; using the following categorisation criteria:
- ‘Retail Client’ is a Customer who is neither a Professional Client nor an Eligible Counterparty.
- ‘Eligible Counterparty’ is any of the following entities to which an investment firm provides the services of reception and transmission of orders on behalf of Customers and/or execution of such orders and/or dealing on own account: Cyprus Investment Firm/Greek Investment Firm, other investment firms, credit institutions, insurance companies, UCITS and their management companies, Portfolio Investment Companies, pension funds and their management companies and other financial institutions authorised by a Member State of the European Union or regulated under Community legislation or the national law of a Member State, undertakings exempted from the application of the Investment Services and Activities and Regulated Markets Law 144(I) of 2007 in accordance with paragraphs (k) and (l) of subsection (2) of section 3, national governments and their corresponding offices, including public bodies that deal with public debt, central banks and supranational organisations.
- ‘Professional Client’ is a Customer who possesses the experience, knowledge and expertise to make his own investment decisions and properly assess the risks that he incurs. In order to be considered a Professional Client, a Client must comply with one of the following criteria:
Categories of client who are considered to be professionals
The following should all be regarded as professionals in all investment services and activities and financial instruments.
Entities which are required to be authorised or regulated to operate in the financial markets. The list below should be understood as including all authorised entities carrying out the characteristic activities of the entities mentioned: entities authorised by a Member State under the Markets in Financial Instruments Directive, entities authorised or regulated by a Member State without reference to the above Directive, and entities authorised or regulated by a non-Member State:
(a) Credit Institutions;
(b) Investment Firms;
(c) Other Authorised or regulated financial institutions;
(d) Insurance Companies;
(e) Collective Investment Schemes and management companies of such schemes;
(f) Pension funds and management companies of such funds;
(g) Commodities and commodity derivatives dealers;
(i) Other Institutional Investors (like Portfolio Investment Companies).
Large undertakings meeting two of the following size requirements on a company basis:
(a) Balance sheet total: EUR 20.000.000
(b) Net turnover: EUR40.000.000
(c) Own funds: EUR 2,000,000
National and regional governments, public bodies that manage public debt, 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.
- The entities mentioned above are considered to be professionals in relation to all investment services and activities and financial instruments. They are however allowed to request non-professional treatment and the Company may agree to provide a higher level of protection. Where the client of the Company is an undertaking referred to above, the Company must inform the Customer, prior to any provision of services that, on the basis of the information available to the Company, the client is deemed to be a professional client, and will be treated as such unless the Company and the client agree otherwise. The Customer may request a variation of terms of the agreement in order to secure a higher degree of protection.
- This higher level of protection will be provided when a client who is considered to be a professional, enters into a written agreement with the Company to the effect that it shall not be treated as a professional specifying whether this applies to one or more particular services or transactions, or to one or more types of product or transaction.