Client Categorisation

According to the Directive 2014/65/UE of 15 May on Markets in Financial Instruments ("MIFID II"), Global Capital categorises its clients taking into account their knowledge, experience and skills in the investment field relevant to the specific type of product or services offered or demanded, into one of the following three (3) categories:

• Professional Clients 

• Eligible Counterparties

• Retail Clients

1. Professional Clients 

Professional Clients are clients who are considered to possess the experience, knowledge and expertise to make their own investment decisions and properly assess the risks they incur. 

The following are regarder as per se Professional clients:

a) Credit Institutions, investment firms, other authorised or regulated financial institutions, insurance companies, collective investment schemes and management companies of such schemes, pension funds and management companies of such funds, commodity and commodity derivatives dealers, locals, and other institutional investors.

b) Large undertakings meeting  two of the following criteria, asize requirements on a company basis: “Professionals”: 

1. Balance Sheet Total: at least €20.000.000 

2. Net Turnover at least €40.000.000 

3. Own Funds: at least €2.000.000. 

c) National and regional governments, including public bodies that manage public debt at national or regional level, Central Banks, international and supranational institutions such as the World Bank, the IMF, the ECB, the EIB and other similar international organisations.

d) other instituitional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitisation of assets or other financial transactions.

Request for Different Classification 

The Professional Client has the right to request to be classified as a Retail Client in order to obtain a higher level of protection. Global Capital is, however, not obliged to deal with the Client on this basis. 

2. Eligible Counterparties 

Eligible Counterparties are defined by the Law as being any one of the following entities: 

a. Investment Firms 

b. Credit Institutions 

c. Insurance companies 

d. Collective investment schemes and management companies of such schemes 

e. Pension funds and management companies of such funds 

f. Other authorised or regulated financial institutions 

g. Commodity and commodity derivatives dealers 

h. National and regional governments, including public bodies that manage public debt 

i. Central Banks 

j. International and supranational institutions such as the World Bank, the International Monetary Fund, the European Central Bank, the European Investment Bank and other similar international organisations. 

Eligible counterparties receive the least protection under the Law. 

They are exempted from important obligations relating to conduct of business, best execution and client order handling rules. This exception, however, does not apply when the Investment firm offers the Eligible Counterparty the service of investment advice and portfolio management, in which case the Eligible Counterparty is treated as a Professional Client. 

Request for Different Classification 

The Eligible Counterparty has the right to request to be classified either as a Professional Client or a Retail Client in order to obtain a higher level of protection. Global Capital is, however, not obliged to accept the Client’s request. 

3. Retail Clients 

Retail Clients are all clients who do not fall in the categories of Professional Client or Eligible Counterparty. Retail clients receive the highest degree of investor protection compared to the other categories of clients. 

Request for Different Classification 

The Retail Client has the right to request to be treated as a Professional Client but he/she will be afforded a lower level of protection. While Global Capital is not obliged to accept the client’s request, in order to be considered for treatment as a Professional Client the client must fulfill two of the following criteria:

1. The client has carried out transactions, in significant size, on the relevant market which, on average, should amount to at least 10 per quarter in each of the last 4 quarters; 

2. The size of the client’s financial instrument portfolio exceeds €500.000; 

3. The client works or has worked in the financial sector for at least 1 year, in a professional position that requires knowledge of the transactions or services envisaged