Due to regulations, US Exchange Traded Funds (ETFs) cannot be offered to UK retail clients without the provision of a Key Information Document (KID).
This restriction means that only ‘Professional or Elective Professional Investors" (i.e non-retail customers) that meet a certain criteria can invest in US ETFs.
Information on the procedure for reclassification from retail to ‘Elective Professional’ Client
Stake is allowed to reclassify a retail client to an elective professional client, once it undertakes an adequate assessment of the expertise, experience and knowledge of the client that gives reasonable assurance, that the client is capable of making their own investment decisions and understand the risks involved.
In the course of that assessment, at least two out of the following three criteria must be satisfied:
- You have carried out transactions, in significant size, on the relevant market (e.g. stocks, ETFs, or similar products in a Stake or another brokerage or share dealing account) at an average frequency of 10 per quarter over the previous four quarters;
- The size of your financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds EUR 500,000;
- You work or have worked in the financial sector for at least one year in a professional position, which requires knowledge of the products you trade in or want to trade in.
Once your request for such reclassification is received by Stake, we will send you some documentation to review, before we can proceed.
Please note that in general, elective professional clients are afforded with a lower level of investor protection. Detailed information on this will be included in the documentation that will be provided.
It is clarified that Stake has the right to reject such requests.
For further information on the Elective Professional categorisation, please contact us at firstname.lastname@example.org.