Customer categorisation and customer protection
Lysa is obligated to divide its customers in categories. The categorisation is based on your knowledge, experience and other conditions. The customer category you fall into affects, among other things, which information you receive from Lysa and thus, your customer protection level.
Retail (non-professional) have the highest level of protection, while eligible counter parties have the lowest. All of Lysa’s customers are categorised as retail customers. The customer categories are described below.
Retail customers belong to the highest level of protection. This means, among other things, that Lysa has an extensive information obligation. For example, you will receive information about financial instruments and the risks associated with these, as well as information about costs and fees.
In order for Lysa to be able to provide portfolio management to a retail customer, Lysa must first make an assessment of the customer (a so called suitability assessment) based on the customer’s financial situation, whether the customer can bear the financial risk associated with the investment, risk propensity, investment horizon, the customer's needs and desires and its investment objectives.
Professional customers do not have as high protection as retail customers. Professional customers include e.g., larger companies, financial institutions and institutional investors. The protection of professional customers includes e.g.:
- Information about risks in conjunction with investment in financial instruments.
- When providing portfolio management to professional customers, Lysa must first make a suitability assessment based on the objectives with the investment and whether the customer can bear the financial risk associated with the investment.
Eligible counter party
An eligible counter party has the lowest level of protection. For example, securities companies, insurance companies and credit institutions belongs to this group.
Change of customer category
A customer can request to change customer category. Such a request must be in writing. Lysa determines whether the customer may change customer category and informs the customer whether the change is approved or not. A change in customer category means, among other things, that the customer will have another protection, see the descriptions above.