Professional client

Per se professionals include authorised financial firms, large undertakings, governments and certain institutional investors, on the conditions in COBS 3.5. A firm may treat another client as an elective professional only after a qualitative test of expertise, experience and knowledge, and, for MiFID business, a quantitative test. At least two of these must be true: the client has traded in significant size at an average of 10 times a quarter over the previous four quarters; the financial-instrument portfolio, including cash deposits, exceeds EUR 500,000; or the client has worked for at least a year in a professional role that needs knowledge of the relevant transactions. The client must also ask in writing, and the procedure in the chapter must be followed. Elective professional status removes retail protections such as the CFD leverage cap. The FCA has said it watches opt-ups that are used to avoid those protections. This page is not a route to that status.