An Eligible counterparty (ECP) is an entity that is authorised or regulated to operate in the financial markets that is not given investment advice.
An Eligible counterparty (ECP) belongs to one of the following categories:
- Investment firms
- Credit institutions
- Insurance companies
- UCITS and their management companies
- Other financial institutions authorised or regulated under Community legislation or the national law of a member state
- Commodity dealers and ‘locals’ on exchanges
- National governments and their corresponding offices, including public bodies that deal with public debt
- Central banks and supranational institutions.
If such clients are provided with investment advice, they will be treated as Professional clients instead.
ECPs receive the lowest level of protection under MiFID.
MiFID is a European directive that must be transposed into national legislation in order to take effect. The local Conduct of Business rules of the country from which the services are offered apply to all your MiFID transactions with ING, regardless of the country in which you are resident or the country in which the transaction is booked.
If you are a client outside the European Economic Area (EEA) conducting business with an ING entity or branch inside the EEA, the local Conduct of Business rules of the location of that entity or branch apply.