CIPR 3.3.2 Customer classification — opting-up

(1) If a customer of an authorised firm would, apart from this rule, be classified as a retail customer, the firm may classify the customer as a business customer in accordance with this rule. The firm may do so in relation to all regulated activities and specified products or only in relation to 1 or more particular regulated activities and specified products.
(2) However, in the case of a customer who is not a business customer under rule 1.2.7, the firm must not classify the customer as a business customer in relation to regulated activities referred to in rule 1.2.7 (a).
(3) The firm must not classify a customer as a business customer unless:
(a) the customer has asked to be classified as a business customer;
(b) after a determination in accordance with rule 3.3.3, the firm is satisfied that the customer has at least QR 4 million in net assets (excluding the value of his or her primary family residence, but including assets in which he or she has a beneficial interest); and
(c) after an assessment in accordance with rule 3.3.4, the firm is satisfied that the customer has sufficient knowledge, experience and understanding of the relevant financial markets, products and transactions and their associated risks to justify the firm's dealing with him or her without the benefit of the retail protections.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).