NEWCOB: FSA modifies MiFID client categorisation

In its consultation paper on the new conduct of business (NEWCOB) sourcebook - CP06/19: Reforming Conduct of Business Regulations - the FSA confirms it will adopt the Markets in Financial Instruments Directive (MiFID) client terminology of ‘retail’, ‘professional’ and ‘eligible counterparty’ for both MiFID and non-MiFID firms. But it proposes that modifications of the criteria for the categories should be adopted to allow greater flexibility for non-MiFID business. In particular, the FSA is proposing to ‘turn off’ the quantitative criteria for a retail client ‘opting up’ to professional ...