Textual Amendments
F1Schs. 1, 2 inserted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 36 (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
(1)A client satisfying the criteria in Part 3 may only be treated as a professional client if the following procedure is followed—
(a)the client must state in writing to the investment firm that it wishes to be treated as a professional client, either generally or in respect of a particular investment service or transaction, or type of transaction or product;
(b)the investment firm must give the client a clear written warning of the protections and investor compensation rights it may lose;
(c)the client must state in writing, in a separate document from the contract, that it is aware of the consequences of losing such protections.
(2)Before deciding to accept any request from a client to be treated as a professional client, investment firms must take all reasonable steps to ensure that the client in question meets the relevant requirements stated in Part 3.
(3)Points (1) and (2) do not apply in relation to a client who has already been categorised as a professional client under parameters and procedures similar to those referred to in this Schedule.
(4)Investment firms must implement appropriate written internal policies and procedures to categorise clients.
(5)A professional client is responsible for keeping the investment firm informed about any change which could affect its current categorisation as a professional client.
(6)Should the investment firm become aware however that the client no longer fulfils the conditions which made that client eligible to be treated as a professional client, the investment firm must take appropriate action.]