CIPR 3.3.3 Determination of customers' net assets

(1) When an authorised firm is considering whether to classify a customer as a business customer, the firm must make reasonable efforts to obtain evidence showing that the customer meets the minimum asset requirement in rule 3.3.2 (3) (b).
(2) If the firm cannot obtain such evidence despite making reasonable efforts to do so, the firm may rely on a signed statement by the customer confirming that the value of his or her net assets meets that requirement.
(3) The statement must be in a form prepared by the firm. The form must include the following warning:
If you misrepresent your financial position in this statement, you might receive unsuitable advice or buy a financial service or product that is not in your best interests.
(4) The warning must be prominent and must be as close as practicable to the place for the customer's signature.
(5) The form must also include the explanation required by rule 3.3.5 (a).
(6) If there are reasonable grounds to doubt the accuracy of the statement, the firm must not classify the customer as a business customer.
(7) The firm must obtain confirmation of the statement from the customer periodically (at least annually).
Derived from QFCRA RM/2019-2 (as from 1st January 2020).