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Version date: 25 May 2018 - onwards

Question 4 Clients who may be treated as professionals on request (3) [Last update: 25 May 2018]

Section II.1 of Annex II of MiFID II

How should an investment firm assess whether a private individual investor has carried out transactions of a "significant size" in accordance with the first limb in the fifth paragraph of Section II.1 of Annex II of MiFID II?

Answer 4

When assessing whether a client transaction is of a significant size, investment firms shall, inter alia, take into account the size of transactions on the relevant market. For the purpose of determining the relevant threshold, the scope of the analysis should not be limited to (the size of) transactions previously carried out by the relevant client or by clients of the relevant investment firm on the relevant market.

To assess whether transactions are of a significant size, investment firms should consider whether the transactions were individually large enough to provide the client with meaningful exposure to the relevant market so that it contributed to the client's acquiring the required expertise, experience an

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