CIPR 3.3.1 Customer classification — general obligation

(1) Before conducting business with or for a customer, an authorised firm must take reasonable steps to establish whether the customer is:
(a) a retail customer;
(b) a business customer; or
(c) an eligible counterparty;
and must then classify the customer accordingly.
(2) If the firm cannot be sure whether a particular customer is a retail customer or a business customer, the firm must classify the customer as a retail customer.
(3) An individual who is a customer in relation to a contract of insurance that would cover the customer in both a private and a business capacity must be classified as a retail customer.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).