MIFID categories
According to MIFID a Professional Client is the one which falls in one of the following categories:
Entities which are authorized or regulated to operate in the financial markets, including those authorized by an EU member state. Such entities are:
Total balance sheet: EUR 20,000,000
Net turnover: EUR 40,000,000
Own funds: EUR 2,000,000
National and regional governments, including public bodies that manage public debt at national or regional level (e.g. central banks, international and supranational institutions as the World Bank, the IMF, the ECB and the EIB)
Institutional investors whose main activity is to invest in financial instruments, including entities dedicated to securitisation of assets or other financing transactions (e.g. certain family offices, corporate finance companies).
MiFID II distinguishes between Per se Professional clients as described above and Elective Professional clients.
Elective Professional clients are in principle retail clients who may be treated as professional clients on request. Two of requirements have to be satisfied in order to qualify as Elective Professional client:
Where we treat you as a Professional Client, some of the CySEC rules will cease to apply to us and we will be entitled to take advantage of several lighter provisions. In particular:
Entities which are authorized or regulated to operate in the financial markets, including those authorized by an EU member state. Such entities are:
- Credit institutions
- Investment firms
- Insurance companies
- Collective investment schemes (UCITS) and their management companies
- Pension funds and their management companies
- Commodity and commodity derivatives dealers
Total balance sheet: EUR 20,000,000
Net turnover: EUR 40,000,000
Own funds: EUR 2,000,000
National and regional governments, including public bodies that manage public debt at national or regional level (e.g. central banks, international and supranational institutions as the World Bank, the IMF, the ECB and the EIB)
Institutional investors whose main activity is to invest in financial instruments, including entities dedicated to securitisation of assets or other financing transactions (e.g. certain family offices, corporate finance companies).
MiFID II distinguishes between Per se Professional clients as described above and Elective Professional clients.
Elective Professional clients are in principle retail clients who may be treated as professional clients on request. Two of requirements have to be satisfied in order to qualify as Elective Professional client:
- The size of the client’s financial instrument portfolio, including cash deposits and financial instruments exceeds €500 000,
- The client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters,
- The client has knowledge and experience of the transactions and/or services envisaged.
Where we treat you as a Professional Client, some of the CySEC rules will cease to apply to us and we will be entitled to take advantage of several lighter provisions. In particular:
- you will be given fewer information disclosures with regard to the firm, its services and any costs, commissions, fees and charges;
- when we assess whether a product or service is appropriate for you, we can assume that you have the necessary level of knowledge and experience to understand the risks involved in it;
- if we are ever required to assess the appropriateness of a personal recommendation made to you we can assume that you have the necessary experience and knowledge to understand the risks involved, and can sometimes assume that you are able financially to bear any investment risks consistent with your investment objectives;
- when providing best execution, we are not required to prioritize the overall cost of the transaction as being the most important factor in achieving best execution for you;
- we do not need to inform you of material difficulties relevant to the proper carrying out of your Order/s promptly; and
- should we provide you with periodic statements we are not required to provide them as frequently as for retail clients.
According to MiFID, an Eligible Counterparty is one which falls in one of the following categories:
Where we treat you as an Eligible Counterparty, you will be entitled fewer protections under CySEC rules than you would be entitled to as a professional client. In particular:
- Investment Firms
- Credit Institutions
- Insurance Companies
- UCITS and their management companies
- Pension funds and their management companies
- Other financial institutions authorized or regulated under the European Union legislation or the national law of a Member State
- Undertakings whose main business consists of dealing for own account in commodities and or commodity derivatives or undertakings which provide investment services and or perform activities consisting exclusively in dealing on own account on markets in financial futures or options or other derivatives markets, or which deal for the accounts of other member of those markets
- National and regional governments and their corresponding offices including public bodies that deal with public debt, central banks, supranational organizations
- Large undertakings meeting predetermined proportionate requirements, including quantitative thresholds
- Third country entities with equivalent status
Where we treat you as an Eligible Counterparty, you will be entitled fewer protections under CySEC rules than you would be entitled to as a professional client. In particular:
- we are not required to provide you with best execution when executing your Orders;
- we are not required to disclose to you information regarding any fees or commissions that we pay or receive;
- we are not required to assess the appropriateness of a product or a service that we provide to you but can sometimes assume that you have the expertise to choose the most appropriate product or service for yourself;
- we are not required to provide you with information about ourselves, our services and the agreements through which we will be remunerated;
- we are not required to provide you with risk disclosures on the products or services that you select from us.
According to MiFID, a Retail Client means every client who is neither a Professional Client nor an Eligible Counterparty.
GPB FS does not offer services or carry out any business with Retail Clients. You can only establish business relations with us if you are classified as a Professional Client.
GPB FS does not offer services or carry out any business with Retail Clients. You can only establish business relations with us if you are classified as a Professional Client.
MIFID disclosures
Definition
Systematic Internalisers (SI) are defined as “investment firms which, on an organised, frequent, systematic and substantial basis, deal on own account when executing client orders outside a regulated market, an MTF or an OTF”.
Scope
GPB-Financial Services Ltd (“GPBFS”) is an SI for the purposes of Directive 2014/65/EU (“MIFID II”)) for the financial instruments as included in Appendix 1 below.
Provision of quotes
Details in relation to the provision of quotes to clients of GPBFS are provided in our Systematic Internaliser Commercial Policy, which can be found below.
📄 Systematic Internaliser Commercial Policy
📄 Systematic Internaliser Information
Systematic Internalisers (SI) are defined as “investment firms which, on an organised, frequent, systematic and substantial basis, deal on own account when executing client orders outside a regulated market, an MTF or an OTF”.
Scope
GPB-Financial Services Ltd (“GPBFS”) is an SI for the purposes of Directive 2014/65/EU (“MIFID II”)) for the financial instruments as included in Appendix 1 below.
Provision of quotes
Details in relation to the provision of quotes to clients of GPBFS are provided in our Systematic Internaliser Commercial Policy, which can be found below.
📄 Systematic Internaliser Commercial Policy
📄 Systematic Internaliser Information
If you require additional information about MiFID, please contact our Compliance Department
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- Compliance Department
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