Elective Professional Client Classification

Elective Professional Client Classification

Please complete this form and click submit to apply for professional client status.

1. Client Information


Company Name
Complete if applicable
Account Number
First Name
Last Name
Email address
Phone Number
Total Annual Income (please tick the box that applies to you):
£200,000+
£100,000 - £199,999
£50,000 - £99,999
£25,000 - £49,999
£10,000 - £24,999
Less than £10,000
Sources of wealth (choose all that apply):
Business Revenue
Investments
Trust Fund
Employment Salary
Inheritance
Other (Please specify)

2. Qualifying Criteria


To qualify you need to meet (& tick) at least two of the three criteria below: Please tick all that apply.

Criteria 1 – You have traded, in significant size, in the Forex/CFD markets or other leveraged products (e.g. Spot FX, forwards, futures, swaps, options, other derivatives etc.) at an average frequency of 10 transactions per quarter over the previous four quarters (with City Index and / or other providers).

A significant size trade = minimum notional value of £10,000 on equities or £50,000 on Forex, indices and commodities (or currency equivalent).

Criteria 2 – The size of your financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000 (or equivalent in your local currency).

Please confirm your Net Savings and Investments (savings and liquid assets minus liabilities e.g. any outstanding loans you have - please tick the box that applies to you):
£500,000+
£150,000 - £499,999
£50,000 - £149,999
£5,000 - £49,999
£1,000 - £4,999
Less than £1,000
Example of savings and investments we accept: Cash savings, stock portfolio, stocks and shares ISA, trading accounts, mutual funds, SIPP (excluding non-financial instruments).
Example of savings and investments we can’t accept: Company pension, non-tradeable assets, property, luxury cars, jewellery.
Criteria 3 – You work or have worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.
If you tick this box please complete the following fields:
Is this employer regulated by a financial regulatory body? (e.g. the FCA, the PRA, or another equivalent regulator)
Yes
No
Do you have qualifications that assist your understanding of Spread Bets or CFDs? (e.g. CFA, IMC, CISI)
Yes
No
If yes, please specify:
Have you personally ever been regulated by the FCA or another equivalent regulatory body?
Yes
No
If yes, please specify:

3. Qualitative Assessment


1. Once ESMA’s leverage restrictions are imposed for retail clients, do you understand that trading as a professional will involve a greater risk of loss than trading as a retail client as you are trading on higher leverage rates?
Yes
No
2. Are you confident you have the adequate expertise, experience and knowledge to allow you to manage your account on the higher leverage rates that will apply to a professional account?
Yes
No

4. Changes to Protection Rights


Separate to this form and the General Terms, we have provided you with a notice of the regulatory protections and compensation rights that may not be available to a professional client.

5. Agreement


I confirm that for the purposes of my account(s) with StoneX Financial Ltd, I wish to be treated as a professional client. I understand that StoneX Financial Ltd will treat this as a written request from me to be treated as a professional client and will subsequently assess whether I qualify for such client categorisation. I confirm that the information I have provided is accurate and complete to the best of my knowledge and ability. I also understand that it’s my responsibility to notify StoneX Financial Ltd if anything changes that might affect my eligibility to be classified as a professional client.
Full Name
Date (DD MM YYYY)
Please enter a valid email address.

Notice of Change to Your Regulatory Protections

To complete your application, please read our ‘Changes to Protections’ statement below and confirm you understand this information at the bottom of this page:

As a Professional Client you are treated differently to a retail client under UK and EU regulation.

This document contains a summary of the protections that may not be available to you if you are categorised as a Professional Client.

  1. Margin and Leverage Limits: As a Professional Client your leverage limits and margin rates will not be affected by ESMA rule changes.

    ESMA (the European Securities and Market Authority) has agreed on intervention measures to restrict the sale of CFDs to retail clients. These rules limit the amount of leverage that a retail client is exposed to on various products and increases the margin required to trade. Leverage limits for retail clients will be as follows:

    1. 30:1 for major currency pairs;
    2. 20:1 for non-major currency pairs, gold and major indices;
    3. 10:1 for commodities other than gold and non-major equity indices;
    4. 5:1 for individual equities and other reference values;
    5. 2:1 for cryptocurrencies.
  2. Product Features: As a Professional Client, ESMA changes to product features made mandatory for a retail client will not be mandatory for you.

    Retail clients will benefit from the below product features that are not mandatory for Professional Clients.

    1. a mandatory close out if margin levels fall below 50% of the original margin requirement;
    2. mandatory negative balance protection on a per account basis;
    3. a restriction on the incentives offered to trade CFDs and spread bets; and
    4. a standardised risk warning, including the percentage of losses on retail investor accounts.
  3. Communications: All communications with our clients are required to be fair, clear and not misleading, although as a Professional Client we may use more sophisticated language when dealing with you. We are required to use simple language and be very balanced when describing the risks and benefits of trading leveraged products when communicating with a retail client.
  4. Knowledge and experience: we may assume that a Professional Client has the necessary level of knowledge and experience to understand the risks involved with trading leveraged products. For retail clients, this assumption is not available, and we would be required to satisfy ourselves that our services / products are appropriate for that retail client.
  5. Client Money: Any client money transferred to us will be held on trust for you at all times and will be segregated from our own money. In the event of our insolvency, your money will be excluded from our assets. Where we hold client money we are required to apply the FCA’s rules in CASS 7. Although we may be able to opt-out of these rules for Professional Clients, we have chosen to treat your client money the same way we treat a retail client’s money.
  6. Best execution: We owe both our retail clients and our Professional Clients a duty of best execution. Although these rules may allow us to apply this duty differently for different client categorisations, we will execute your orders in the same way that we execute a retail client’s orders.
  7. Trade confirmations: We will send out trade confirmations to you by the end of the first business day following the execution of the trade, or earlier. The content of such confirmations are more prescribed for retail clients but we will provide trade confirmations to retail and Professional Clients in the same manner.
  8. Complaints handling and FOS: The complaints handling rules under DISP, which includes the Financial Ombudsman Service (“FOS”) which are available to a retail client, may not be available to a Professional Client. Notwithstanding this, you would still be eligible to access FOS as long as you are an individual trading in a personal (“consumer”) capacity and not by way of business.
  9. Investor compensation and FSCS: Natural persons are generally eligible complainants, whereas investment firms are not. Eligibility for compensation from the Financial Services Compensation Scheme (“FSCS”) is not contingent on your client categorisation with us but on whether you fall within the definition of an “eligible complainant” under COMP 4.2.
  10. Key information document for packaged products: This documentation will be available to our retail and Professional Clients although the requirements to provide a “Key Information Document” to retail clients do not apply to Professional Clients.
It should be noted that under the FCA rules you have the right to request a different client categorisation, however this is subject to our internal policies and our assessment of your client profile. You will be responsible for keeping us informed of any change that could affect your client categorisation.

Acknowledgement


I acknowledge that by electing to be a Professional Client I may lose some protections afforded by the FCA rules (as detailed above) and that I understand the consequences of losing such protections.
Full Name
Date (DD MM YYYY)
We may require further information from you and will contact you as soon as we have reviewed your application.