Client category "professional client
According to MiFID legislation (Directive 2014/65/EU), a distinction must be made between the client categories "eligible counterparty", "professional client" and "non-professional client" in the context of securities transactions and investment advice, of which the client must be informed in writing by the relevant bank or investment firm upon classification and in the event of a possible reclassification. Detailed information on customer categories can be requested via our "contact us" page.
Purpose of client classification
The purpose of customer classification is to ensure that customers are treated in a manner appropriate to their knowledge and experience of transactions in financial instruments and the nature, frequency and extent of such transactions. Suitability and appropriateness must be considered when making investment decisions and recommendations to ensure that they are consistent with customers' investment objectives and risk profiles and are reasonable in light of customers' ability to bear investment risk.
The ORBIT Offering is directed exclusively at professional investors in accordance with the criteria and requirements set forth herein. If a classification is not clearly possible, an investor shall be classified as a non-professional investor.
What is a professional client?
Professional clients include the account holders listed in Section I of Annex II to Directive 2014/65/EU.
The most important professional clients in practice are:
2. Asset management companies;
3. Insurance companies;
4. Investment companies and their management companies;
5. Pension funds and management companies of such funds;
6. Large companies that meet two of the following size requirements on a company basis:
a) Total assets: equivalent of EUR 20,000,000
b) Net turnover: equivalent of EUR 40,000,000
c) Equity capital: equivalent of EUR 2,000,000
7. National and regional governments, including public bodies that manage public debt at national or
regional level, central banks, international and supranational institutions such as the World Bank, the
International Monetary Fund (IMF), the European Central Bank (ECB), the European Investment Bank
(EIB) and other similar international organisations.
Change of investor class to that of a professional client
Changing the investor class of a non-professional client to a professional client (so-called reclassification) is possible if the following conditions are cumulatively met (reduction of the protection level):
1. This type of client expressly wishes to be graded as a professional client.
2. The Group company reasonably believes that in view of the nature of the planned transactions or
services, the client is able to make his or her investment decisions himself or herself and understands the
3. The client satisfies at least two of the following criteria:
a) The client has carried out transactions, in significant size, on the relevant markets at an average
frequency of 10 per quarter over the previous four quarters.
b) The size of the client’s financial instrument portfolio, defined as including cash deposits and financial
instruments, exceeds EUR 500,000 or the equivalent.
c) The client (or in the case of a legal entity or an independent special-purpose fund, the governing body)
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.
4. The client signs a Group company form that lists the aforementioned conditions and confirms having
met these requirements.