FSA sets out client categorisation proposals

The paper says the FSA’s general approach is to copy out the Mifid provisions and to replace the existing client classification framework in its conduct of business (COB) sourcebook with Mifid terminology. Mifid adopts two main categories of client – retail and professional – and has a separate third category for a limited range of business called eligible counterparty (ECP). As with the COB regime Mifid attaches different regulatory protections to each category, but the FSA says the boundaries between categories under Mifid and COB are different so similar clients may fall into a Mifid...