Regulatory Alerts2021-02-02
Added · Updated
Guidance Notes on the Contracts For Differences Rules, 2020 Elective Professional Client
The Securities Commission of The Bahamas establishes compliance expectations for CFD firms reclassifying non-accredited investors as Elective Professional Clients under Rule 25. Firms must conduct qualitative and quantitative assessments, requiring a minimum of ten questions and demonstrating that clients executed ten significant transactions per quarter over the previous four quarters. The guidance mandates that firms obtain written confirmation of reclassification, provide specific warnings regarding the loss of retail protections, and update client information annually to ensure ongoing eligibility.
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