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Client Categorisation Policy
This Client Categorisation Policy forms part of the Client Agreement as defined in the User Agreement.
## 1. Introduction
1.1. GRACEXFX LTD. (the “Company”) is authorized and regulated by the Anjouan Offshore Finance Authority as a Comoros forex firm under license No: L15817/GL and is incorporated in Comoros under Government Notice number 005 OF 2005 with registration number 15817.
1.2. This Policy provides you with information and details on the procedures adopted by the Company, pursuant to and in accordance with the requirements of Directive 2014/45 of the Union of Comoros Parliament and Council on financial markets instruments, amending Directive 2005/92/EC and Directive 2011/61, as transposed into Comoros legislation, regarding how the Company classifies its clients into the available categories defined by applicable rules and regulations.
1.3. According to the Comoros Securities Market Act (“the Law”), regarding the provision of investment services, the exercise of investment activities, and the operation of regulated markets transposed into Comoros legislation, and as stated in section 49 of the User Agreement, GRACEXFX LTD. is required to categorize all its clients into one of the following three categories: Retail, Professional, or Eligible Counterparty.
1.4. GRACEXFX LTD. currently accepts Retail clients and clients who explicitly request to be treated as Professional clients (“Elective Professional Clients”, “EPC”). The Company accepts both individual and corporate clients.
## 2. Client Classification Categories
2.1. A “Retail client” is a client who is not deemed to be a Professional client by default or an Eligible Counterparty. Retail clients are afforded the highest level of protection under the Law.
2.2. A “Professional client” is a client who possesses the experience, knowledge, and expertise to make their own investment decisions and properly assess the risks incurred. Part I of the Second Appendix of the Law provides a list of entities regarded by default as Professional clients.
2.3. An “Eligible Counterparty” consists of certain entities deemed to be Professional clients.
## 3. Request for Re-classification
3.1. Any Retail client can explicitly request to be re-classified/re-categorised and treated as a “Professional client,” thereby waiving some protections afforded by the Law (see section 4 below).
3.2. The Company may treat any Retail client as a Professional client provided that the relevant criteria and procedures mentioned below are fulfilled. However, these clients are not presumed to possess market knowledge and experience comparable to that of default Professional clients (see point 2.2 above).
3.3. Any waiver of protection afforded to such clients shall be considered valid only if an adequate assessment of their expertise, experience, and knowledge—undertaken by the Company—provides reasonable assurance that they are capable of making their own investment decisions considering the nature of envisaged transactions or services.
3.4. The Company will assess the applicant client's knowledge and experience. During this assessment, at least two of the following criteria must be satisfied:
3.4.1 The client has carried out transactions in significant size on the relevant market at an average frequency of 10 per quarter over the previous four quarters.
3.4.2 The size of the client's financial instrument portfolio (including cash deposits and financial instruments) exceeds €500,000.
3.4.3 The client has worked in the financial sector for at least one year in a professional position requiring knowledge of envisaged transactions or services.
3.5. A Retail client requesting to be treated as a Professional client may waive benefits associated with Retail client conduct rules only if the following procedure is followed:
(i) The client notifies/requests that they wish to apply for treatment as a Professional client;
(ii) The Company provides a clear written warning regarding protections and investor compensation rights that may be lost;
(iii) The client explicitly confirms awareness of and consents to losing such protections.
3.6. Requests from Retail clients to be treated as Professional clients are considered general requests for re-categorisation for business relationships with the Company concerning all products, transactions, and services offered by the Company. Re-categorisation for specific services, products, or transactions is not available.
3.7. Before accepting any request for re-categorisation from a client, the Company takes all reasonable steps to ensure that the requesting client meets relevant requirements.
3.8. Any Retail client who has requested re-categorisation as a Professional client may at any point request re-categorisation back to a Retail client.
3.9. Elective Professional clients are responsible for possessing experience comparable to default Professional clients (see point 2.2 above).
Here’s the corrected version of your text, with improvements to grammar, punctuation, clarity, and consistency:
3.10. Client Re-categorisation Requests
Clients may request re-categorisation to an Elective Professional Client and/or seek more information about the other categories via the Trading Platform or by contacting us through the “Contact Us” page on our Website.
4. Protection Rights
4.1. Protection Rights to which Retail and/or Professional clients (including Elective Professional clients) are entitled under the Law may include, but are not limited to, the following:
4.1.1 Retail and Elective Professional clients have a comprehensive right to receive information from the Company regarding its investment services and financial instruments, fees and charges, and safeguarding services for client funds.
4.1.2 The Company requests Retail and Elective Professional clients to provide information regarding their knowledge and experience in trading financial instruments to assess the appropriateness of the product or service offered. Based on this assessment, the Company will advise the client on the appropriateness of the product or service provided. For further information on the Assessment of Appropriateness, refer to Section 6 of the User Agreement.
4.1.3 Retail and Elective Professional clients are entitled to receive the best possible result for their orders (“best execution”), considering factors such as price of financial instruments and costs related to transmission/execution. Full details of our Order Execution Policy, which is part of the User Agreement, can be found on our Website.
4.1.4 The Company provides all required regulatory information regarding the execution of orders for Retail and Elective Professional clients.
4.1.5 If there are material difficulties in properly executing Retail and Elective Professional clients’ orders, the Company is obligated to inform customers when such difficulties become known.
4.1.6 The Company must enter into a written agreement with Retail and Elective Professional clients, outlining the essential rights and obligations of both parties.
4.2. Protection Rights that Retail clients are entitled to under legislation, but not Professional clients (including Elective Professional clients), may include, but are not limited to, the following:
4.2.1 Retail clients may be entitled to compensation under the Guarantee Fund Investor Protection Sectoral Fund. Professional clients are not entitled to compensation under this fund. Full details of our Investor Compensation Fund Policy, which is part of the User Agreement, can be found on our Website in the User Agreement.
GRACEXFX LTD. (the “Company”) is authorized and regulated by the Anjouan Offshore Finance Authority as a Comoros forex firm under license No: L15817/GL and is incorporated in the UNION OF COMOROS under Government Notice number 005 OF 2005 with registration number 15817.
1.1. GRACEXFX LTD. (the “Company”) is authorized and regulated by the Anjouan Offshore Finance Authority as a Comoros forex firm under license No: L15817/GL and is incorporated in Comoros under Government Notice number 005 OF 2005 with registration number 15817.
1.2. This Policy provides you with information and details on the procedures adopted by the Company, pursuant to and in accordance with the requirements of Directive 2014/45 of the Union of Comoros Parliament and Council on financial markets instruments, amending Directive 2005/92/EC and Directive 2011/61, as transposed into Comoros legislation, regarding how the Company classifies its clients into the available categories defined by applicable rules and regulations.
1.3. According to the Comoros Securities Market Act (“the Law”), regarding the provision of investment services, the exercise of investment activities, and the operation of regulated markets transposed into Comoros legislation, and as stated in section 49 of the User Agreement, GRACEXFX LTD. is required to categorize all its clients into one of the following three categories: Retail, Professional, or Eligible Counterparty.
1.4. GRACEXFX LTD. currently accepts Retail clients and clients who explicitly request to be treated as Professional clients (“Elective Professional Clients”, “EPC”). The Company accepts both individual and corporate clients.
## 2. Client Classification Categories
2.1. A “Retail client” is a client who is not deemed to be a Professional client by default or an Eligible Counterparty. Retail clients are afforded the highest level of protection under the Law.
2.2. A “Professional client” is a client who possesses the experience, knowledge, and expertise to make their own investment decisions and properly assess the risks incurred. Part I of the Second Appendix of the Law provides a list of entities regarded by default as Professional clients.
2.3. An “Eligible Counterparty” consists of certain entities deemed to be Professional clients.
## 3. Request for Re-classification
3.1. Any Retail client can explicitly request to be re-classified/re-categorised and treated as a “Professional client,” thereby waiving some protections afforded by the Law (see section 4 below).
3.2. The Company may treat any Retail client as a Professional client provided that the relevant criteria and procedures mentioned below are fulfilled. However, these clients are not presumed to possess market knowledge and experience comparable to that of default Professional clients (see point 2.2 above).
3.3. Any waiver of protection afforded to such clients shall be considered valid only if an adequate assessment of their expertise, experience, and knowledge—undertaken by the Company—provides reasonable assurance that they are capable of making their own investment decisions considering the nature of envisaged transactions or services.
3.4. The Company will assess the applicant client's knowledge and experience. During this assessment, at least two of the following criteria must be satisfied:
3.4.1 The client has carried out transactions in significant size on the relevant market at an average frequency of 10 per quarter over the previous four quarters.
3.4.2 The size of the client's financial instrument portfolio (including cash deposits and financial instruments) exceeds €500,000.
3.4.3 The client has worked in the financial sector for at least one year in a professional position requiring knowledge of envisaged transactions or services.
3.5. A Retail client requesting to be treated as a Professional client may waive benefits associated with Retail client conduct rules only if the following procedure is followed:
(i) The client notifies/requests that they wish to apply for treatment as a Professional client;
(ii) The Company provides a clear written warning regarding protections and investor compensation rights that may be lost;
(iii) The client explicitly confirms awareness of and consents to losing such protections.
3.6. Requests from Retail clients to be treated as Professional clients are considered general requests for re-categorisation for business relationships with the Company concerning all products, transactions, and services offered by the Company. Re-categorisation for specific services, products, or transactions is not available.
3.7. Before accepting any request for re-categorisation from a client, the Company takes all reasonable steps to ensure that the requesting client meets relevant requirements.
3.8. Any Retail client who has requested re-categorisation as a Professional client may at any point request re-categorisation back to a Retail client.
3.9. Elective Professional clients are responsible for possessing experience comparable to default Professional clients (see point 2.2 above).
Here’s the corrected version of your text, with improvements to grammar, punctuation, clarity, and consistency:
3.10. Client Re-categorisation Requests
Clients may request re-categorisation to an Elective Professional Client and/or seek more information about the other categories via the Trading Platform or by contacting us through the “Contact Us” page on our Website.
4. Protection Rights
4.1. Protection Rights to which Retail and/or Professional clients (including Elective Professional clients) are entitled under the Law may include, but are not limited to, the following:
4.1.1 Retail and Elective Professional clients have a comprehensive right to receive information from the Company regarding its investment services and financial instruments, fees and charges, and safeguarding services for client funds.
4.1.2 The Company requests Retail and Elective Professional clients to provide information regarding their knowledge and experience in trading financial instruments to assess the appropriateness of the product or service offered. Based on this assessment, the Company will advise the client on the appropriateness of the product or service provided. For further information on the Assessment of Appropriateness, refer to Section 6 of the User Agreement.
4.1.3 Retail and Elective Professional clients are entitled to receive the best possible result for their orders (“best execution”), considering factors such as price of financial instruments and costs related to transmission/execution. Full details of our Order Execution Policy, which is part of the User Agreement, can be found on our Website.
4.1.4 The Company provides all required regulatory information regarding the execution of orders for Retail and Elective Professional clients.
4.1.5 If there are material difficulties in properly executing Retail and Elective Professional clients’ orders, the Company is obligated to inform customers when such difficulties become known.
4.1.6 The Company must enter into a written agreement with Retail and Elective Professional clients, outlining the essential rights and obligations of both parties.
4.2. Protection Rights that Retail clients are entitled to under legislation, but not Professional clients (including Elective Professional clients), may include, but are not limited to, the following:
4.2.1 Retail clients may be entitled to compensation under the Guarantee Fund Investor Protection Sectoral Fund. Professional clients are not entitled to compensation under this fund. Full details of our Investor Compensation Fund Policy, which is part of the User Agreement, can be found on our Website in the User Agreement.
GRACEXFX LTD. (the “Company”) is authorized and regulated by the Anjouan Offshore Finance Authority as a Comoros forex firm under license No: L15817/GL and is incorporated in the UNION OF COMOROS under Government Notice number 005 OF 2005 with registration number 15817.