HSBC Exchange Traded Funds

Investor type description

This is an excerpt from the Conduct of Business Sourcebook's client categorisation section COBS 3.

A retail client is a client who is not a professional client or an eligible counterparty (COBS 3.4.1).

A professional client is a client that is either a per se professional client or an elective professional client (COBS 3.5.1).

A person who can be classified as a professional client will generally need to meet one or more of the following requirements:

  1. The client is an entity required to be authorised or regulated to operate in the financial markets. The following list includes all authorised entities carrying out the characteristic activities of the entities mentioned, whether authorised by a European Economic Area (EEA) state or a third country and whether or not authorised by reference to a directive:
    1. A credit institution
    2. An investment firm
    3. Any other authorised or regulated financial institution
    4. An insurance company
    5. A collective investment scheme or the management company of such a scheme
    6. A pension fund or the management company of a pension fund
    7. A commodity or commodity derivatives dealer
    8. A local
    9. Any other institutional investor
  2. The client has a large undertaking meeting two of the following size requirements on a company basis:
    1. A balance sheet total of EUR20 million
    2. A net turnover of EUR40 million
    3. Own funds of EUR2 million
  3. The client has a large undertaking meeting any of the following conditions:
    1. A body corporate which has (or any of whose holding companies or subsidiaries has or has had at any time during the previous two years) called up share capital or net assets of at least GBP51 million (or its equivalent in any other currency at the relevant time)
    2. An undertaking that meets (or any of whose holding companies or subsidiaries meets) two of the following tests:
      1. A balance sheet total of EUR12.5 million
      2. A net turnover of EUR25 million
      3. An average number of 250 employees during the year
    3. A partnership or unincorporated association which has (or has had at any time during the previous two years) net assets of at least GBP5 million (or its equivalent in any other currency at the relevant time) and calculated in the case of a limited partnership without deducting loans owing to any of the partners
    4. A trustee of a trust (other than an occupational pension scheme, small self-administered pension scheme [SSAS], personal pension scheme or stakeholder pension scheme) which has (or has had at any time during the previous two years) assets of at least GBP10 million (or its equivalent in any other currency at the relevant time) calculated by aggregating the value of the cash and designated investments forming part of the trust's assets, but before deducting its liabilities
    5. A trustee of an occupational pension scheme or SSAS, or a trustee or operator of a personal pension scheme or stakeholder pension scheme where the scheme has (or has had at any time during the previous two years):
      1. At least 50 members
      2. Assets under management of at least GBP10 million (or its equivalent in any other currency at the relevant time)
    6. A local authority or public authority
  4. The client is a national or regional government, a public body that manages public debt, a central bank, an international or supranational institution (such as the World Bank, the International Monetary Fund [IMF], the ECP, the European Investment Bank [EIB]) or another similar international organisation.
  5. The client is another institutional investor whose main activity is to invest in financial instruments (in relation to the firm's Markets in Financial Instruments Directive [MiFID] or equivalent third country business) or designated investments (in relation to the firm's other business). This includes entities dedicated to the securitisation of assets or other financing transactions.