Client Categorisation

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2 INTRODUCTION ATC BROKERS LIMITED ( ATC ) ensures that clients are apprpriately categrised, prir t ding business with them, in rder t ensure that regulatry prtectins are fcused n thse classes f client that need this the mst. ATC is required by the rules and guidance f the Financial Cnduct Authrity (FCA Rules and the FCA) t classify all clients and establish whether the client is a Retail Client, Prfessinal Client r an Eligible Cunterparty. Clients may request t receive a different classificatin at any time, either generally r in respect f specific circumstances. Fr yur infrmatin, we have included belw an explanatin f the differences in classificatin and the prtectins ffered t each level. Defined terms that are nt specifically defined in this dcument bear the meanings assigned t them in the FCA Rules. RETAIL CLIENT As a Retail Client, yu are entitled t the maximum level f prtectin in relatin t the FCA s Cnduct f Business (COBS) and Client Mney and Assets (CASS) rules; and the services f the Financial Ombudsman Service (FOS) and Financial Services Cmpensatin Scheme (FSCS). With regards t funds held with ATC, any mney we receive frm yu r hld n yur behalf will be treated as Client Mney as defined in these CASS rules. This means that any mney we receive frm yu r hld n yur behalf will be segregated frm ATC s wn mney, and yu will nt rank as a general creditr f ATC in the event f inslvency r an equivalent failure. ATC has the permissins t deal with Retail Clients and unless a client is deemed a prfessinal client they will be a Retail Client. A Retail Client may include the fllwing: A cmpany, partnership r trust that des nt qualify as a prfessinal client; An individual wh is nt an authrised persn; An individual wh is an authrised persn but is nt acting in the curse f carrying n the business fr which he is authrised; An verseas individual wh des nt qualify as an verseas financial services firm; A grup f individuals wh are nt in partnership but whm ATC prpses t treat as a single custmer; Authrised and regulated by the Financial Cnduct Authrity - Feb P age

3 PROFESSIONAL CLIENT Per Se Prfessinal Client: Certain clients autmatically fall within the definitin f Prfessinal Clients ( per se Prfessinal Clients) unless and t the extent that they eligible cunterparties (carrying ut eligible cunterparty business). These are: Credit institutins; Investment firms; Any ther authrised r regulated financial institutins; Insurance cmpanies; Cllective investment schemes r the management cmpany fsuch schemes; Pensin funds r the management cmpany f apensin fund; Cmmdity r cmmdity derivatives dealers; Lcals; Other institutinal investrs (either authrised r regulated); Large undertakings meeting tw f the fllwing criteria: Balance sheet ttal: 20m Net turnver: 40m Own funds: 2m Natinal r reginal gvernments, including a public bdy that manages public debt at a natinal r reginal level, a central bank, an internatinal r supranatinal institutin r ther similar internatinal institutins; Other institutinal investrs whse main activity is t invest in financial instruments, including entities dedicated t the securitisatin f assets r ther financial transactins; Clients wh d nt qualify as per se Prfessinal Clients, such as small cmpanies and individual investrs, may be treated as Prfessinal Clients if they s request, prvided they meet certain criteria relating t experience, expertise and wealth. Authrised and regulated by the Financial Cnduct Authrity - Feb P age

4 Elective Prfessinal Client: Fr an Elective Prfessinal Client, the client must meet the certain criteria as required by the FCA. These are: A client must pass a Qualitative test and we must assess their knwledge, experience and expertise t ensure they are capable f making their wn investment decisins with reference t the nature f the transactins r services envisaged. A client must als satisfy a Quantitative test and satisfy 2 f the fllwing where applicable: Client has carried ut transactins, in significant size and averaged a frequency f ver 10 trades per quarter in relevant market ver the perid f the previus4 quarters; Value f investment prtfli and cash investments ver 500,000; Be emplyed r had been emplyed in the relevant financial sectr fr ver a year in a prfessinal psitin which requires knwledge f the transactins r services envisaged; Prvided the abve criteria are met, ATC may treat a client as an Elective Prfessinal Client nly if the fllwing prcedure is fllwed: The client must state in writing that it wishes t be treated as a prfessinal client generally r in respect f a specific service r transactin r type f transactin r prduct; ATC must give a written warning f the prtectins and investr cmpensatin rights the client may lse (see belw); and The client must state in writing in a separate dcument frm this cntract, that it is aware f the cnsequences f lsing said prtectins. As a Prfessinal Client, yu will lse the fllwing prtectins affrded t Retail Clients under FCA rules: Yu will nt be eligible t seek the services f the FOS and may nt be eligible fr cmpensatin under the FSCS. We will nt be bliged t cmply with COBS rules relating t restrictins n and the required cntents f direct ffer financial prmtins. We will nt be required t prvide yu with the written risk warnings and ntices required fr Retail Clients in relatin t transactins in cmplex financial instruments. Authrised and regulated by the Financial Cnduct Authrity - Feb P age

5 We will nt be required t disclse in writing any charges, remuneratin r cmmissin r ther incme payable t ATC r ur Affiliates fr cnducting the regulated business. Where we assess whether a prduct r service is apprpriate fr yu, in relatin t the prducts, transactins and services fr which yu are classified, we can assume that yu have the necessary level f knwledge and experience t understand the risks invlved in it. If we are required t assess the suitability f a persnal recmmendatin made t yu, in relatin t the prducts, transactins and services fr which yu are classified, we can assume that yu have the necessary experience and knwledge t understand the risks invlved and assume that yu are able financially t bear any investment risks cnsistent with ur investment bjectives. The COBS rules relating t the cnfirmatin f transactins will apply in a mdified frm. Prvisins regarding extra reprting requirements fr dealings with Retail Clients and prvisin f hard cpies f cnfirmatins nt accessed electrnically will nt apply. When prviding yu with Best Executin we are nt required t priritise the verall csts f the transactin as being the mst imprtant factr in achieving Best Executin fr yu, nr d we have t cnsider ur wn cmmissins and csts relating t each f the eligible executin venues available when assessing which t use in rder t prvide Best Executin. ELIGIBLE COUNTERPARTY Clients may nly be classified as Eligible Cunterparties in relatin t certain limited services. These services are: dealing and arranging/receptin and transmissin f rders; the executin f rders; and dealing n wn accunt, i.e. eligible cunterparty business (and related ancillary services). In relatin t all ther investment services and activities, the Eligible Cunterparty will be categrised a Prfessinal Client (e.g. in respect f investment advice). Eligible Cunterparties will include capital market participants such as investment firms and banks; majr market users and investrs such as undertakings fr cllective investments in transferable securities and fund managers as well as natinal gvernments and ther public bdies; central banks and supranatinal rganizatins. Clients that autmatically fall within the Eligible Cunterparty definitin will be per se Eligible Cunterparties. The cnduct f business rules in relatin t best executin, rder handling and certain cnduct f business bligatins d nt apply when bringing abut r entering int transactins with Eligible Cunterparties r in respect f any ancillary service directly related t thse transactins. Authrised and regulated by the Financial Cnduct Authrity - Feb P age