Requirement (MIFID)
Article 50 Eligible counterparties
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
1. Member States may recognise an undertaking as an eligible
counterparty if that undertaking falls within a category of clients
who are to be considered professional clients in accordance with
paragraphs 1, 2 and 3 of Section I of Annex II to Directive 2004/
39/EC, excluding any category which is explicitly mentioned in
Article 24(2) of that Directive.
On request, Member States may also recognise as eligible
counterparties undertakings which fall within a category of
clients who are to be considered professional clients in
accordance with Section II of Annex II to Directive 2004/39/
EC. In such cases, however, the undertaking concerned shall be
recognised as an eligible counterparty only in respect of the
services or transactions for which it could be treated as a
professional client.
2. Where, pursuant to the second subparagraph of Article 24
(2) of Directive 2004/39/EC, an eligible counterparty requests
treatment as a client whose business with an investment firm is
subject to Articles 19, 21 and 22 of that Directive, but does not
expressly request treatment as a retail client, and the investment
firm agrees to that request, the firm shall treat that eligible
counterparty as a professional client.
However, where that eligible counterparty expressly requests
treatment as a retail client, the provisions in respect of requests of
non-professional treatment specified in the second, third and
fourth sub-paragraphs of Section I of Annex II to Directive
2004/39/EC shall apply.
Comment
Applies to Article 24(3) of Directive 2004/39/EC