COBS 2.4.3 "Service-based" Professional Clients
Past version: effective from 21/10/2015 - 20/10/2015
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(a) A Person is a "Service-based" Professional Client if:
(i) the Regulated Activity carried on, where this involves provision of a service to a Client, is Providing Credit;
(ii) the Person is an Undertaking;
(iii) the Credit Facility in question is provided for use in the business activities of:
(A) the Person;
(B) a Controller of the Person;
(C) any member of the Group to which the Person belongs; or
(D) a joint venture of a Person referred to in Rules 2.4.3(a)(iii)(A)–(C);
(iv) the Regulated Activity carried on, where this involves provision of a service to a Client, is "Advising on Investments", "Advising on Credit", "Arranging Credit" or "Arranging Deals in Investments" and the service is provided for the purposes of Corporate Structuring and Financing; and
(v) the Person has not opted-in to be classified as a Retail Client.
(b) A "Service-based" Professional Client may elect to be treated as a Retail Client in accordance with Rule 2.6.1.
(c) An Authorised Person must have a reasonable basis for classifying a Person as falling within the list of "Service-based" Professional Clients above such as inspecting copies of any necessary supporting documentation and keeping records of the same.