Investment services - investor protection

Question 1

What are the general principle for investor protection

Answer 1

IF must act honestly, fairly and professionally and in the best interest of the client

MiFID has specific investor protection rules such as:

Client categorization
Information to clients
Assessment of suitability and appropriateness
Reporting to clients
Best execution
client order handling
Tied agents

Question 2

What is client categorization?

Answer 2

Protective measures are adapted to the particularities of three categories of investors

Retail, professional, eligible counterparties

IF must categories clients and notify them about the categorization

Question 3

What are retail clients?

Answer 3

Me, the normal client

defined as a client who is not a professional client - deemed to need full protection as regards conduct of business rules

Question 4

What is a professional clients?

Answer 4

Client who meets the criteria in the relevant Annex of MiFID

Its a client who possess the experience, knowledge and expertise to make its own investment decisions and properly assess the risks that it incurs

This is some one who has no need for the high level investor protection given to retail clients