If a per se eligible counterparty requests treatment as a client whose business with the firm is subject to conduct of business protections, but does not expressly request treatment as a retail client and the firm agrees to that request, the firm must treat that eligible counterparty as a professional client.
[Note: first paragraph of article 50(2) of the MiFID implementing Directive]
If, in relation to MiFID or equivalent third country business a per se professional client or a per se eligible counterparty requests treatment as a retail client, the client will be classified as a retail client if it enters into a written agreement with the firm to the effect that it will not be treated as a professional client or eligible counterparty for the purposes of the applicable conduct of business regime.
This agreement must specify the scope of the re-categorisation, such as whether it applies to one or more particular services or transactions, to one or more types of product or transaction or to one or more rules.
In accordance with Principle 7 (communications with clients) if a firm at its own initiative re-categorises a client in accordance with this section, it should notify that client of its new category under this section.
The ways in which a client may be provided with additional protections under this section include re-categorisation:
on a general basis; or
on a trade by trade basis; or
in respect of one or more specified rules; or
in respect of one or more particular services or transactions; or
in respect of one or more types of product or transaction.
[Note: second paragraph of article 24(2) of MiFID]