Professional Clients
As an experienced trader, you may be eligible to be classed as an Elective Professional Client, gaining exemption from leverage limits and product restrictions at no additional cost.
What happens if I become a Professional Client?
By choosing to categorised as an Elective Professional Client you will lose some of the regulatory protections afforded to Retail Clients. Please see below for some of the main changes in the way your account will be treated.
Protections you will retain:
- Unless you specifically agreed otherwise in writing, Capital Index (UK) Limited will continue segregating your funds in our Client Money bank accounts in accordance with the Client Money Rules.
- You have the right to request to be re-categorised as a Retail Client at any time.
- As an individual, you are eligible for Financial Services Compensation Scheme protection
- As an individual (consumer) you are able to use the Financial Services Ombudsman should you not be satisfied with the outcome of a complaint to us please see our Complaints Procedure.
Protections you will lose:
- As a Professional Client your account will not be eligible for negative balance protection. You will have an obligation to make additional payments if your account falls into negative balance, meaning you can lose more than your deposits.
- Unlike a Retail Client, Capital Index (UK) Limited will not be required to restrict leverage offered to you in line with the FCA supervisory measures. Higher leverage can mean higher losses if the markets move against you.
- As a Professional Client, Capital Index (UK) Limited may assume your level of knowledge and experience when assessing whether our products are appropriate
for you.
- Capital Index (UK) Limited will not be required to provide you with written risk warnings and notices in relation to transactions in complex financial instruments.
Change of professional status:
In line with the MiFID rules (section II.2 of Annex II), where Capital Index (UK) Ltd becomes aware that the professional client classification criteria are not met by the client, appropriate action may be taken to address the heightened level of risk that the client is exposed to and mitigate potential losses. Such action may include Capital Index (UK) Ltd, at its own discretion, changing the categorisation of a client from professional client to retail client.
Capital Index (UK) Ltd will inform the client via a written notification whenever a change in categorisation occurs, notifying the client about the change in degree of protection.
