Client Classification

Under the rules of the FSA, clients fall into one of three possible categories:

1. Eligible counterparties, who are considered to be the most sophisticated investors and are likely to be large organisations such as investment firms, credit institutions, pension funds and national governments. Eligible counterparty status is relevant only for certain types of investment business;

2. Professional clients, who are considered to possess the experience, knowledge and expertise to make their own investment decisions and assess the risks inherent in those decisions. The definition of professional client includes all those entities that may be treated as eligible counterparties and some others.

3. Retail clients, who are any clients who do not come under either of the other two categories, such as private individuals. The greatest regulatory protections are provided to retail clients and the least to eligible counterparties.



Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.