Crowdbase client categorisation policy

Introduction

The purpose of this Client Categorisation Policy is to provide our users with a clear understanding of how Crowdbase classifies and treats its clients in accordance with the Cyprus Securities and Exchange Commission (CySEC) regulatory requirements. This policy outlines the different categories and the corresponding levels of protection and obligations for each category.

Client Categories

Crowdbase categorises its clients into three primary categories in line with the CySEC regulatory framework:

• Retail Clients
• Professional Clients
• Eligible Counterparties

Retail Clients

As per our Terms and Conditions (Section 4.2), Crowdbase treats all individual clients as “retail clients” by default. Retail clients receive the highest level of protection and regulatory safeguards under the CySEC Law.

Professional Clients

Professional clients are clients with the necessary experience, knowledge and expertise to make their own investment decisions and properly assess the risks involved. To be classified as a Professional Client, the client must meet at least two of the following criteria as defined by the CySEC’s CIF Law:

• The client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters.
• The size of the client’s financial instrument portfolio, including cash deposits and financial instruments, exceeds €500,000.
• The client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.

Professional clients receive a lower level of protection than Retail Clients. If a client meets these criteria and wishes to be treated as a Professional Client, they must submit a written request to Crowdbase and provide any required documentation for verification. It’s important to note that Crowdbase retains the right to decline any such requests at its discretion.

Eligible Counterparties

Eligible counterparties are typically institutional clients, such as investment firms, banks, or insurance companies. These clients receive the lowest level of protection compared to Retail and Professional Clients.

Client Categorization Process

Upon completing the required account registration, questionnaire, and ID verification process, Crowdbase will categorise you as a Retail Client, unless you meet the criteria for Professional Client status and request to be treated as such. Crowdbase reserves the right to reassess and change the client’s categorisation if it deems necessary or upon the client’s request, subject to regulatory requirements.