COB 2.3.8

(1) For the purposes of COB Rule 2.3.3(1)(a)(iii), an Undertaking is an 'assessed' Professional Client if the Undertaking:
(a) has own funds or called up capital of at least $1 million; and
(b) appears, on reasonable grounds, to have sufficient experience and understanding of relevant financial markets, products or transactions and any associated risks, following the analysis set out in COB Rule 2.4.3.
(2) An Authorised Firm may also classify an Undertaking as a Professional Client if the Undertaking has:
(a) a controller;
(b) a Holding Company;
(c) a Subsidiary; or
(d) a joint venture partner,
who meets the requirements to be classified as an 'assessed' Professional Client pursuant to either COB Rule 2.3.7(1)(a) and (b)(ii) or COB Rule 2.3.8(1) as applicable, or a 'deemed' Professional Client pursuant to COB Rule 2.3.4(1).
(3) For the purposes of classifying an Undertaking that is an industry or professional body or association as an ‘assessed’ Professional Client, the requirement in (1)(a) does not apply.
(4) In this Rule:
(a) the terms 'own funds' and 'called up capital' in (1)(a) have the meaning given under COB Rule 2.3.4(3)(b) or (c) as the case may be; and
(b) the term 'controller' in (2)(a) means an individual who meets the criteria in COB Rule 2.3.5(2).
Derived from DFSA RM149/2015 (Made 11th February 2015) [VER24/04-15]
[Amended] DFSA RMI267/2020 (Made 26th February 2020). [VER36/04-20]