![UT-2022-00097 - [2024] UKUT 00352 (TCC)](https://backend.juristeca.com/files/emisores/logo_ICfrj4g.png){kind=logo}
Client Categorisation
Client Categorisation
Mr Meadows accepts that the Applicant failed, as required at the time by COBS 3.3.1R and 3.8.2R(2) of the Authority’s Conduct of Business Sourcebook, to categorise the Solo Clients before the trading commenced as either a retail client, professional client or eligible counterparty based on their level of trading, experience, risk knowledge and access to funds.
The Applicant decided to categorise all the Solo Clients as professional clients on the basis that they were understood to be institutional investors whose main activity was to invest in financial instruments. As was found in the Decision Notice, the Applicant had insufficient evidence to satisfy itself that all the Solo clients should properly have been categorised as professional clients.
- Heading
- Introduction
- Applicable law and regulatory provisions
- Step 1: Disgorgement
- Step 2: The seriousness of the breach
- Step 3: Mitigating and aggravating factors
- Step 4: Adjustment for deterrence
- Step 5: Settlement Discount
- Evidence
- Findings of Fact
- Background
- The Solo Business
- Onboarding of the Solo Clients
- Client Categorisation
- Transaction monitoring
- Regulatory Failings
- Assessment of the financial penalty
- Step 1 – disgorgement
- Steps 2 to 5 - General
- Step 2 - The seriousness of the breach
- Step 3 - Mitigating and aggravating factors
- Step 4 - Adjustment for deterrence
- Step 5
- Conclusions