Client Categorisation Policy

1. Introduction

Montrock Ltd categorises each client under one of two headings: a Private Client or a Professional Client. Categorisation determines the level of regulatory protection a client is entitled to, together with the disclosures, assessments and protections the Company provides.

2. Private Clients

A Private Client is a client who is not a Professional Client. Private Clients are afforded the highest level of protection, as they are generally not considered to have relevant or sufficient experience for investment business. The Company is required to provide Private Clients with fuller disclosures, appropriateness assessments and best-execution protections.

3. Professional Clients

A Professional Client is a client who is a per se professional client or an elective professional client and who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks incurred. Professional Clients are entitled to fewer protections than Private Clients.

4. Reclassification

The Company may classify a client who would otherwise be a Private Client as a Professional Client where the client is a high-net-worth person or a sophisticated person and, in the case of a sophisticated person, the Company has:

• taken reasonable care to determine that the client has sufficient experience and understanding not to require Private Client protections;
• given a clear written warning of the protections the client will lose; and
• obtained the client’s written consent after the client has had a proper opportunity to consider that warning.

Professional Clients may, in certain cases, be further classified as market counterparties where the applicable legal criteria are met. All classifications are reviewed at least annually to ensure they remain appropriate.

5. Protections Waived by Professional Clients

Where a client is treated as a Professional Client, the Company may, among other things:

• not restrict the client’s account with the standardised risk warnings and rules that protect Private Clients;
• use more complex language in communications, on the assumption that the client has sufficient experience;
• assume the client’s level of experience when determining the suitability of products and services;
• take other factors such as speed and likelihood of execution into account when processing trades, whereas for Private Clients the Company must prioritise overall cost of the transaction; and
• expose the client to higher leverage, which can amplify losses.

6. Protections of Private Clients

Private Clients are entitled to fuller protections, including (the list is not exhaustive):

• more information disclosures regarding the Company, its services, financial instruments and their performance, the nature and risks of financial instruments, and costs, commissions, fees and charges;
• an appropriateness assessment for relevant investment services, in which the Company asks for information on the client’s knowledge and experience and warns the client where a product or service is not appropriate;
• best execution of orders, in which the Company takes all sufficient steps to obtain the best possible result; and
• determination of the best possible result by reference to total consideration, being the price of the financial instrument together with all related execution costs, including venue fees, clearing and settlement fees, and fees paid to third parties involved in the execution of the order.

The Company also informs Private Clients promptly of any material difficulties relevant to the proper carrying out of their orders.

7. Re-Categorisation and Duty to Update

Where permitted, a client may request re-categorisation, though the Company is not obliged to accept a request. The Company may also re-categorise a client if circumstances change or information becomes inaccurate. Clients must promptly inform the Company of any changes that could affect their classification. Professional Clients remain entitled to the same reporting obligations as Private Clients.

Contact and Regulatory Information

Montrock Ltd is incorporated in Mauritius under Company No. 231276 GBC and is regulated by the Financial Services Commission, Mauritius (FSC) as an Investment Dealer (Full Service Dealer, Excluding Underwriting), FSC Licence No. GB25205688. Registered office: Suite 201, Level 2, The Catalyst, 40 Silicon Avenue, Cybercity, Ebene 72201, Mauritius.

Compliance enquiries: compliance@mont-rock.com

Website: https://mont-rock.com

Risk warning: Transactions in financial instruments, particularly leveraged or derivative instruments where offered, involve significant risk and may result in substantial loss. Nothing on the website constitutes a guarantee of profit or investment performance.