Professional clients includes entities not classified as Eligible counterparties, which are authorised or regulated to operate in the financial markets, such as credit institutions, investment firms, insurance companies and pension funds.
This means that clients that could otherwise be classified as an Eligible counterparty are categorised as Professional clients if the investment services they receive do not involve the reception and transmission or the execution of an order.
Large undertakings can also qualify as Professional clients if they meet at least two of the three ‘large undertakings’ criteria:
1. A balance sheet total of at least EUR 20 million
2. Net turnover of at least EUR 40 million
3. Own capital of at least EUR 2 million
Under MiFID rules, Professional clients need to provide less information to their financial institution than Retail clients. In return, they receive a lower level of protection than Retail clients.
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.