The protection provided varies for the different client groups, depending on the client’s knowledge, experience and other circumstances. The bank has chosen to use the legal definitions of the different client categories. Clients are divided into retail clients, professional clients and eligible counterparties. The highest level of protection is afforded to retail clients and the lowest level of protection is given to eligible counterparties.
Unless the bank indicates otherwise, you will be categorised as a retail client with the highest level of protection.
This group has the highest level of client protection. Among other things, this means that the bank will provide information about the bank and its services. The bank will also provide information about the financial instruments in question and the risks involved in these as well as costs and other fees for trading in these. When providing portfolio management or investment advice, the bank will assess whether a service or an instrument is suitable for the client before the bank provides the service or recommends the instrument. The bank makes this assessment on the basis of the client’s investment objectives, financial situation and experience and knowledge of the service or the transaction. For services other than portfolio management and investment advice, the bank will assess whether the service is appropriate for the client based on the client’s knowledge and experience. Such an assessment is not made, however, where the client, at its own request, places an order in financial instruments which the bank considers to be non-complex.
Under certain circumstances, retail clients can be moved to the professional clients group. This can be done on a general basis or for a specific group or specific groups of financial instruments and services. Special conditions apply to such reallocation. For more details, contact your adviser or your local bank branch.
Allocation to the professional investors group reduces the level of protection.
Professional clients are deemed to be in a position to make their own investment decisions and understand the risks involved in their investments. They are usually expected to have sufficient knowledge to be able to decide for themselves what information they need in order to be able to make an investment decision. This means that professional clients must themselves request the information that they consider they need. When providing investment advice, the bank does not normally make an assessment of the client’s experience and knowledge, nor of the client’s financial situation. Neither is any assessment made of the client’s experience and knowledge when the bank provides portfolio management. For other types of services – and in contrast to the procedure for retail clients – no assessment is made of whether the service is appropriate based on the client’s knowledge and experience.
Professional clients can, on request and with the consent of the bank, be moved to the retail clients group, thereby increasing the level of protection. Professional clients can also, on request and with the consent of the bank, be moved to the eligible counterparties group, thereby reducing the level of protection. For more details, contact your adviser or your local bank branch.
Eligible counterparties have the lowest level of client protection. When providing portfolio management and investment advice, the bank nevertheless makes an assessment of whether the service is suitable for the client based on the client’s investment objectives. Eligible counterparties can, on request and with the consent of the bank, be moved to the professional clients group or to the retail clients group, thereby increasing the level of protection. For more details, contact your adviser or your local bank branch.