Retail client is a client who is not a professional. This category includes all customers who do not possess the necessary experience, knowledge and expertise to make their own investment decisions and properly assess the risks to which they are exposed.
Professional investor is a customer who possesses the necessary experience, knowledge and expertise enabling him to make his own investment decisions and assess the risks to which he is exposed.
As professional clients for all investment services and on all financial instruments are considered companies which are required to be authorized or regulated under supervisory rules required in order to exercise their particular activity on financial markets whether licensed by a Member State under Community legislation or authorized or subject to supervisory rulesby a Member State without reference to a Directive or are firms which are authorized or regulated to supervisory rules of a third country.
Eurocorp informs the client:
(A) That according to the information available to the company he is considered to be a professional investor,
(B) That he can request a change of the terms of the contract to secure a higher degree of protection and
(C) That he will be handled as a professional investor, unless the Company and the client agree otherwise.
The client who is considered professional has the right to ask for a higher level of protection when he deems he is unable to assess or properly manage the risks to which he is exposed.
Customers who do not fit the category as professionals, including public entities and private retail investors, may waive some of the protections provided by the rules of conduct for investment firms. These customers may be treated by Eurocorp as professionals if the Company is reasonably satisfied after proper assessment of thir expertise, experience and knowledge of these customers, that given the nature of the transactions or services, the client is capable of making his own investment decisions and understands the risks they pose. As criteria for evaluation of such experience and knowledge, eligibility criteria used for managers and company directors who are authorized by a competent authority can be used.
For EUROCORP quitting the higher level of protection and to face the customer as a professional at least two of the following criteria must be met:
(A) the customer has made an average of 10 transactions, of adequate size, per quarter in the relevant market during the previous four quarters
(B) the value of the portfolio of financial instruments of the client (including cash deposits and financial instruments) exceeds five hundred thousand euros (500,000)
(C) the client works or has worked for at least one year in a professional position in the financial sector that requires knowledge of the transactions or services.
These customers can waive the rules of conduct following the following procedure:
(A) they must state in writing their wish to be viewed as a professional client, either generally or in respect to a particular investment service or transaction, or type of transaction or product
(B) EUROCORP sends a written warning in which it clearly specifies the protection and investor compensation rights they may lose
(C) they must state in writing, in a separate document from the contract, that they are aware of the consequences of losing such protection
Investment firms classify their customers as retail or professionals according to internal policies and procedures established in writing. Any changes to internal policy and procedures of investment firms does not affect the classification already done.
Professional clients are required to communicate to Eurocorp any changes that may affect their classification. If it appears that a customer does not fulfill the conditions with which he was classified as a professional client, the company takes the appropriate measures and classifies him as retail, after informing him about it.