| 1.1 | A firm may categorise the following types of client as an eligible counterparty for the purposes of PRIN: | |||
| (1) | a properly constituted government (including a quasi-governmental body or a government agency) of any country or territory; | |||
| (2) | a central bank or other national monetary authority of any country or territory; | |||
| (3) | a supranational whose members are either countries or central banks or national monetary authorities; | |||
| (4) | a State investment body, or a body charged with, or intervening in, the management of the public debt at national level; | |||
| (5) | another firm, or an overseas financial services institution; | |||
| (6) | any associate of a firm (except an OPS firm), or of an overseas financial services institution, if the firm or institution consents; | |||
| (7) | a client when he is classified as an eligible counterparty in accordance with 1.2; or | |||
| (8) | a recognised investment exchange, EU regulated market or clearing house. | |||
| 1.2 | A firm may classify a client (other than another firm, regulated collective investment scheme, or an overseas financial services institution) as an eligible counterparty for the purposes of PRIN under 1.1(7) if: | |||
| (1) | the client at the time he is classified is one of the following: | |||
| (a) | a body corporate (including a limited liability partnership) which has (or any of whose holding companies or subsidiaries has) called up share capital of at least £10 million (or its equivalent in any other currency at the relevant time); | |||
| (b) | a body corporate that meets (or any of whose holding companies or subsidiaries meets) two of the following tests: | |||
| (i) | a balance sheet total of 12.5 million euros (or its equivalent in any other currency at the relevant time); | |||
| (ii) | a net turnover of 25 million euros (or its equivalent in any other currency at the relevant time); | |||
| (iii) | an average number of employees during the year of 250; | |||
| (c) | [deleted] | |||
| (d) | a partnership or unincorporated association which has net assets of at least £10 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); | |||
| (e) | a trustee of a trust (other than an occupational pension scheme, SSAS, personal pension scheme or stakeholder pension scheme) with assets of at least £10 million (or its equivalent in any other currency), calculated by aggregating the value of the cash and designated investments forming part of the trust's assets, but before deducting its liabilities; | |||
| (f) | 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): | |||
| (i) | at least 50 members; and | |||
| (ii) | assets under management of not less than £10 million (or its equivalent in any other currency at the relevant time); and | |||
| (2) | the firm has, before commencing business with the client on an eligible counterparty basis: | |||
| (a) | advised the client in writing that he is being categorised as an eligible counterparty for the purposes of PRIN; | |||
| (b) | given a written warning to the client that he will lose protections under the regulatory system; | |||
| (c) | for a client falling under (1)(a) or (b): | |||
| (i) | taken reasonable steps to ensure that the written notices required by (a) and (b) have been delivered to a person authorised to take such a decision for the client; and | |||
| (ii) | not been notified by the client that the client objects to being classified as an eligible counterparty; | |||
| (d) | for a client falling under (1)(c), (d), (e) or (f): | |||
| (i) | taken reasonable steps to ensure that the written notices required by (a) and (b) have been delivered to a person authorised to take such a decision for the client; and | |||
| (ii) | obtained the client's written consent or is otherwise able to demonstrate that consent has been given. | |||
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PRIN 1 Annex 1 Non-designated investment business - clients that a firm may treat as an eligible counterparty for the purposes of PRIN
You are viewing PRIN 1 Annex 1 Non-designated investment business - clients that a firm may treat as an eligible counterparty for the purposes of PRIN as of . PRIN 1 Annex 1 Non-designated investment business - clients that a firm may treat as an eligible counterparty for the purposes of PRIN was last updated on 01/01/2021.
PRIN 1 Annex 1 Non-designated investment business - clients that a firm may treat as an eligible counterparty for the purposes of PRIN
01/01/2021R