Regulatory Alerts2023-07-28
Added · Updated
Streamlined Approach for Compliance with Suitability Obligations When Dealing with Sophisticated Professional Investors Annex 2: Frequently Asked Questions
Regulators clarify that intermediaries may rely on client-disclosed information to qualify sophisticated professional investors provided reasonable due diligence is performed. The guidance mandates specific product categorization and requires intermediaries to establish systems monitoring gross exposure against client-specified streamlining thresholds. Intermediaries must maintain effective controls to ensure leveraged transactions and designated account balances remain within the defined limits without requiring immediate unwinding of positions.
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