39 Appendix three Appendix three - Consequences of categorisation as a professional client C. Disclosure of risks A firm is entitled to assume that a Professional Client has the requisite knowledge and experience to understand the risks involved in investing. Although the DIM may treat us as a Professional Client, we will treat you, our investor, as a retail client. We will ensure that we assess your knowledge and experience in the investment field relevant to the specific type of investment or service we may recommend. We will also ensure that the risks of any discretionary management service we recommend are explained to you clearly. Although the DIM may treat us as a Professional Client, its products and services are designed on the basis that the end-users are retail clients. Consequently, it must ensure that its communications can be easily understood by retail clients. 2. Suitability and appropriateness If a firm makes a personal recommendation or manages investments for a client, it is required to obtain and consider the following information in relation to the client: • The client’s knowledge and experience in the investment field relevant to the specific type of investment or service • The financial situation of the client, and • The client’s investment objectives However, when making a personal recommendation or managing investments to or on behalf of a professional client, a firm is entitled to assume that, in relation to the products, transactions and services for which the professional client is so classified, the client has the necessary level of experience and knowledge in order to understand the risks involved in the transaction or in the management of his portfolio. This assumption cannot be made for a retail client and firms must assess this information separately. We will treat you, our Investor, as a retail client. Under the regulatory system we are required to obtain and consider the following information in relation to you. • Your knowledge and experience in the investment field relevant to the specific type of investment or service • Your financial situation, and • Your investment objectives Where we recommend you use the services of a DIM, we will ensure that the services of the DIM are suitable for you at outset and on an ongoing basis.
RkJQdWJsaXNoZXIy NjM2Njg1