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  • BC-2.2 BC-2.2 Client Classification

    • BC-2.2.1

      An investment firm licensee must classify the persons with or for whom it intends to carry on regulated investment services, in accordance with the requirements in this section, and communicate its classification to the person concerned.

    • BC-2.2.2

      The purpose of the classification is to ensure that an investment firm licensee's clients are appropriately categorised so that regulatory protections are focused on those classes of client that need them most.

    • BC-2.2.3

      Before conducting regulated investment services with or for any client, an investment firm licensee must take reasonable steps to obtain appropriate information to establish whether that client is a retail client, expert investor or accredited investor.

      Amended: October 2009
      Amended: July 2008

    • BC-2.2.4

      The treatment of an investment firm licensee's clients must be in accordance with the classification it has established for the purpose of Rule BC-2.2.3.

    • BC-2.2.5

      Where specific rules do not exist for a particular class of clients, the CBB requires appropriate treatment in accordance with the overarching principles set forth in the Code.

      Amended: January 2007

    • BC-2.2.6

      Entities classified as expert investors or accredited investors under Rules BC-2.2.9 and BC-2.2.10 may request alternative treatment, in which case investment firm licensees must agree to treat them as retail clients.

      Amended: October 2009
      Amended: January 2007

    • BC-2.2.7 [Deleted]

      Deleted: October 2009

    • BC-2.2.7

      A retail client, as defined in Rule BC-2.2.8, may voluntarily elect to be treated as an expert investor, in which case the investment firm licensee must obtain a signed declaration to that effect prior to any provision of regulated investment services and must satisfy itself that the client qualifies as an expert investor.

      Amended: October 2009

    • Retail Client

      • BC-2.2.8 [Deleted]

        Deleted: October 2009

      • BC-2.2.8

        For the purposes of Rule BC-2.2.3 a retail client means a client who is not classified as an expert investor or an accredited investor under Rules BC-2.2.9 and BC-2.2.10.

        Amended: October 2009

      • BC-2.2.9 [Deleted]

        Deleted: October 2009

    • Expert Investor

      • BC-2.2.9

        Expert investors are:

        (a) Individuals who have a minimum net worth (or joint net worth with their spouse) of USD 100,000, excluding that person's principal place of residence;
        (b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD 100,000; or
        (c) Governments, supranational organisations, central banks or other national monetary authorities, local authorities and state organisations.
        Amended: October 2009
        Added: July 2008

    • Accredited Investor

      • BC-2.2.10

        Accredited investors are:

        (a) Individuals who have a minimum net worth (or joint net worth with their spouse) of USD 1,000,000, excluding that person's principal place of residence;
        (b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD 1,000,000; or
        (c) Governments, supranational organisations, central banks or other national monetary authorities, and state organisations whose main activity is to invest in financial instruments (such as state pension funds).
        Amended: October 2009
        Added: July 2008

    • Records

      • BC-2.2.11

        An investment firm licensee must make a record of the classification established for each client, including sufficient information to support such classification.

        Amended: October 2009