These changes mean that companies will need to review not only their client classification procedures, but also the existing classification of current clients (in particular professional choice clients who have opted for authorised counterparty status and authorities) to ensure that they are correctly classified in MiFID II. It also requires a more comprehensive examination of the impact of recategorization on the treatment of affected customers and may require companies to verify that they have the appropriate permissions to deal with the types of customers concerned. After extensive consultations, the SFC has published a new clause that intermediaries must include in all customer contracts. The new clause obliges intermediaries to ensure that any financial product offered for sale or recommended to a client is suitable for the client, taking into account the client`s financial situation, investment experience and investment objectives. It is based on the obligation of intermediaries to ensure the reasonable relevance of recommendations or solicitations to clients (suitability requirement) in accordance with, but differs from, Section 5.2 of the Code of Conduct for Persons Authorized or Registered by the Securities and Futures Commission (Code). The new clause gives investors a contractual right to claim damages under the customer contract if the intermediary does not comply with the requirement. Again, if you don`t understand it, your customer won`t understand it either. When creating your customer contract, you should provide clear details about when each part of the project is due. 7.5 When you make transactions for or with you, we will always act with you as a customer. While we take reasonable steps to obtain the best available price, you agree and acknowledge that, except as required by FCA rules, we are not required to provide you with best performance in accordance with the FCA rules and you hereby waive those requirements.

If you don`t work for a charity or other nonprofit (yes, you should always design a client contract for good measure), you won`t want to forget the payment details when drafting your contract. A customer contract must clearly and explicitly define a company`s limitations of liability. It should also be clarified that the agreement itself is not negotiable. Yes, it`s an extra expense that probably won`t get you too excited about. Trust us, however, because the potential consequences of signing an agreement you don`t understand cost much more than any lawyer`s fees. 8.4 Any confirmation, billing, report or attestation issued by us in connection with any transaction or other matter will be conclusive and binding on you, unless the written objection is received by us within two working days of the actual or presumed delivery date. Occasionally (whether due to human or technical error), there may be discrepancies in our confirmations, bank statements, reports or certificates. To the extent that we notify you of such errors and/or discrepancies as soon as possible, you will be bound by the relevant confirmation, billing, report or attestation (as corrected), regardless of when the relevant error or discrepancy is discovered by us. With professional-looking billing, you can simplify your company`s finances while building trust for your customers.


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