The main objective of MiFID is to increase consumer protection in investment services. It applies to three types of customers in terms of cost, speed and execution conditions: retails customers, professional customers and eligible counterparties.

Retail customers have the highest level of investor protection. To ensure this, United World Capital will request information about these customers’ market knowledge and experience, prior to providing them any of its services. Regarding trading operations that United World Capital considers inappropriate as for customers’ knowledge and experience, they will be advised, but not interfered with their action.

Retail customers may request in writing to be re-classified as professional customers, in case at least two of the following criteria are met:

• customer has performed large-amount transactions, on the relevant market, at an average frequency of 10/quarter over the past four quarters;
• customer’s financial instruments portfolio, defined as cash deposits and financial instruments, exceeds EURO 500.000;
• customer works or has worked in the financial sector for at least one year in a high-ranking position.

However, re-classification from retail to professional customer results in lower investor protection.

Professional customers are presumed to possess market knowledge and experience, are capable of making investment decisions, and understand the risks involved. They receive a lower level of protection than retail customers, and comprise three categories:

• a) entities authorized/regulated to operate on financial markets, but not classified as eligible counterparties, such as
  • credit institutions
  • investment firms
  • insurance companies
  • pension funds
  • local entities
  • other institutional investors.
• b) large entities that meet at least two of following criteria:
  • min. balance sheet totaling at least EUR 20.000.000
  • min. net turnover of at least EUR 40.000.000
  • min. private capital of at least EUR 2.000.000.
• c) national or regional governments, central banks, international monetary funds or similar international organizations.

Professional customers are responsible for keeping United World Capital continuously informed of all changes that may affect their classification.

Professional customers may request in writing to be reclassified as retail customers to obtain a higher level of investor protection, or as eligible counterparties to obtain a lower level of investor protection.

It is the professional customers’ duty to request a greater level of protection if they feel unable to assess risks correctly. Professional customers that are legal entities may also request to be reclassified as eligible counterparties.

Professional customers that are legal entities can be classified as eligible counterparties (ECP) entities if the investment services they provide involve reception and transmission or execution of orders. Eligible counterparties receive the lowest level of protection, and United World Capital is not obliged to apply 'best execution' rules to them.

Eligible counterparties may request in writing to be reclassified as professional customers to obtain a higher level of investor protection.

Please note!

United World Capital is under no circumstances obliged to agree to its customers’ requests to reclassify their account status.

United World Capital takes all reasonable steps to obtain the best possible results for its customers, taking into consideration all execution factors such as financial instruments, costs, speed, probability of execution and payment, size/nature of order, etc.