Both European and UK regulators have divided Clients into three groups, Retail, Professional or Elective Counterparty:

Retail

A Retail Client is any client who is neither a Professional Client, nor an Eligible Counterparty. They can be private individuals or small companies and receive the highest standard of regulatory protection.

Professional

Professional Clients are divided into two types: “Elective” or “Per se”.  A “Per Se” client is usually an authorised financial company or multinational, whilst an “Elective” Client chooses or “elects” to become a professional client, as they have the necessary experience, knowledge and assets to attain this status.  They receive a reduced level of regulatory protection. 

Elective counterparty

An Eligible Counterparty is a large organisation such as an investment firm, credit institution, national government or pension fund.  The status is only relevant to certain types of investment business.  They receive very little regulatory protection.  CML does not deal with Eligible Counterparties.

We will inform you of your client categorisation should you decide to become a client of Central Markets.  All clients have the right to request a re-categorisation of their status.