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CLIENT CLASSIFICATION
Client Classification
2plan wealth management Ltd (2plan) treats all clients fairly and we are transparent with all our
dealings and interactions with clients. We provide professional advice which protects and
enhances client assets and we build long term relationships based on trust, mutual respect and
integrity.
This document sets out the different classifications of clients and how we work with these
clients. However, whatever the classification, all clients have the right to request a different
categorisation at any time. Should this be required, simply write to us with your request.
Retail Clients
Retail clients enjoy the highest level of investor protection provided by UK law. This means that
we must provide them with clear information about 2plan, our services, the available
investment options and the risk involved in such investments as well as information on the fees
and charges that we intend to charge for these services.
These 2plan fees and charges are disclosed within a separate document known as a Personal Client Agreement that we will ask you to sign and agree to should you wish to become a client.
If a retail client is provided with services in the form of investment advice, 2plan must make a suitability assessment as to whether a particular service and/or financial instrument is suitable in view of the retail client’s investment objectives, financial situation, experience and knowledge.
The category of retail clients includes individuals as well as smaller companies and organisations.
2plan categorises local public authorities or municipalities which do not manage public debt as retail clients.
Retail clients may request in writing to be treated as professional clients or an eligible counterparty by 2plan, either generally or regarding a particular transaction or type of transaction. If a retail client requests to be classified as a professional client or an eligible counterparty, 2plan shall assess the client’s expertise, experience and knowledge and whether these give reasonable assurance that the client is capable of making their own investment decisions and understands the risks involved. Additionally, the retail client must meet certain financial conditions.
If 2plan accepts the client‘s request to be treated as a professional client or an eligible counterparty, the client may no longer enjoy the protection reserved for retail clients afforded by the Financial Services Compensation Scheme and the Financial Ombudsman Service.
These 2plan fees and charges are disclosed within a separate document known as a Personal Client Agreement that we will ask you to sign and agree to should you wish to become a client.
If a retail client is provided with services in the form of investment advice, 2plan must make a suitability assessment as to whether a particular service and/or financial instrument is suitable in view of the retail client’s investment objectives, financial situation, experience and knowledge.
The category of retail clients includes individuals as well as smaller companies and organisations.
2plan categorises local public authorities or municipalities which do not manage public debt as retail clients.
Retail clients may request in writing to be treated as professional clients or an eligible counterparty by 2plan, either generally or regarding a particular transaction or type of transaction. If a retail client requests to be classified as a professional client or an eligible counterparty, 2plan shall assess the client’s expertise, experience and knowledge and whether these give reasonable assurance that the client is capable of making their own investment decisions and understands the risks involved. Additionally, the retail client must meet certain financial conditions.
If 2plan accepts the client‘s request to be treated as a professional client or an eligible counterparty, the client may no longer enjoy the protection reserved for retail clients afforded by the Financial Services Compensation Scheme and the Financial Ombudsman Service.
Professional Clients
A professional client is a client possessing sufficient experience, knowledge and expertise to
make their own investment decisions and properly assess the associated risks.
2plan’s obligations to professional clients are not as extensive as its obligations to retail clients. If a professional client is provided with service in the form of investment advice, 2plan is obligated to assess whether a particular service or financial instrument is consistent with the professional client’s investment objectives.
The following are regarded as per se professional clients
2plan’s obligations to professional clients are not as extensive as its obligations to retail clients. If a professional client is provided with service in the form of investment advice, 2plan is obligated to assess whether a particular service or financial instrument is consistent with the professional client’s investment objectives.
The following are regarded as per se professional clients
- Legal persons who are licensed to operate or engage in regulated activities in financial
markets, including financial undertakings, insurance companies and collective
investment undertakings. - A trustee of an occupational pension scheme of SSAS, or a trustee or operator of a
personal pension scheme or stakeholder pension scheme where the scheme has (or has
had in the last two years) assets under management of at least £10 million. - Large corporations meeting certain requirements regarding their balance sheet, net
turnover and equity. - National and regional governments, including a public body that manages public debt at
national or regional level, central banks, international or supranational institutions or
another similar international organisation. - Other institutional investors whose main activity is to invest in financial instruments.
The following are regarded as elective professional clients
- A local public authority or municipality providing it has been assessed against a
quantitative test to treat it as an elective professional client. The criteria of this test is as
follows
a. The size of the client’s portfolio exceeds £10 million and, either
b. The client has carried out transactions of a significant size at an average
frequency of 10 per quarter over the previous 4 quarters, or
c. The person authorised to carry out transactions has worked in the financial
sector for at least one year in a professional position, or
d. The client is an administering authority of the Local Government Pension
Scheme
Professional clients may request in writing to be categorised as retail clients, either generally or
regarding a particular transaction or type of transaction. Professional clients may also request to
be categorised as eligible counterparties, subject to the fulfilment of certain conditions. It
should be noted that professional clients do not qualify for the protections in place for retail
clients.
Professional clients must notify 2plan of any changes that might affect their categorisation or if
they believe that their categorisation is wrong.
Professional clients are responsible for keeping 2plan informed about any changes that could
affect their current categorisation.
2plan may treat a professional client as an eligible counterparty or retail client, either at 2plan’s
own initiative or at the request of the client.
Eligible Counterparties
Eligible counterparties enjoy the lowest level of investor protection provided by UK law. They
are assumed to have extensive experience, knowledge and expertise in the field of investments,
pensions and securities transactions.
The following are per se eligible counterparties
- A national government or its corresponding office, including a public body that deals
with the public debt at a national level - A central bank
The following are elective eligible counter parties
- An institutional investor
Eligible counterparties must notify 2plan of any changes that might affect their categorisation or
if they believe that their categorisation is wrong.
Eligible counterparties may request in writing to be categorised differently and receive the
added protection to which clients in the other categories are entitled.
2plan may treat an eligible counterparty as a professional or retail client, either at 2plan’s own
initiative or at the request of the client.