Elective Professional Clients Disclaimer (FCA)
Capital Com (UK) Ltd (the “Company”) is authorized and regulated by the Financial Conduct Authority (FRN: 793714) with registered office at 4th Floor 64-66 Vincent Square, London, United Kingdom, SW1P 2NU.
This Elective Professional Clients Disclaimer (the “Policy”) sets out important information for retail Clients who request to be classified as Professional. The policy needs to be read and understood in full, whilst for any enquiries, you may contact firstname.lastname@example.org
Retail Clients may be classified as Professional Clients when they meet at least two of the three following criteria:
the Client seeking professional status 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 size of the financial instrument portfolio of the Client seeking professional status, defined as including cash deposits and financial instruments, exceeds EUR 500 000;
the Client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.
In terms of Law, Professional clients are those clients where we can assume that they have sufficient knowledge, experience and expertise to make their own investment decisions and understand the risks involved in trading with CFDs.
As a Professional Client you are responsible to inform us about any change, which could affect your current classification. In case of such change, please notify us in writing at the following e-mail address: email@example.com or notify your dedicated account manager
Should we become aware however that you no longer fulfill the initial conditions, which made you eligible for Professional Client treatment, we will take appropriate action.
You are entitled to demand at any time another classification, e.g. be re-categorised as a Retail Client and receive higher level of protection in terms of the regulations of the Law (see Part 2 below). In this case, please notify us in writing at the following e-mail address: firstname.lastname@example.org or notify your dedicated account manager. Such re-classification becomes effective after such request has been received and acknowledged by the relevant officer of our Compliance Department. For avoidance of doubt, such requests cannot be retroactively applied to trading transactions that have taken place before we have formally received and acknowledged such request.
2. Consequences of categorisation as Elective Professional
Once categorised as a Professional Client, you will lose some of the regulatory protections which would have otherwise been available to you as a Retail Client. In particular, the following changes shall be applicable:
Appropriateness Test and understanding of risk: We assume that you have sufficient knowledge and experience to understand and assess the risks of the relevant financial instruments and your transactions, therefore we will not provide you with any written risk warnings in relation to any of your transactions.
Terms of Business: Our Terms & Conditions and Policies remain applicable to you to the extent they are not in conflict with your status as a Professional Client.
Financial Promotions: Rules relating to financial promotions are limited or modified in their application to Professional Clients compared to Retail Clients. Financial promotions directed at Professional Clients’ are only subject to the high level requirement that they are fair, clear and not misleading.
Client Compensation Fund Scheme: Only Retail Clients have access to the Financial Services Compensation Scheme, in the case where we are unable to meet our obligations.
Negative Balance Protection: Negative balance protection will be a default option for all elective professional clients taking in account that the leverage used is not higher then 1:50. Upon request elective professional clients can receive negative balance protection combined with the use of a higher leverage then 1:50. In addition, the Company reserves the right to remove negative balance protection, decrease leverage (i.e. Increase margin rates), or vice versa, for specific client accounts, on a case by case evaluation. The Company might exercise this right at its sole discretion in cases where the trading style of specific accounts justifies such change, or in cases where a client account exceeds the Company’s acceptable risk limits. The Company shall inform the client of such change(s) before this is implemented.