The EU Commission Contemplates Amendments to the Criteria Required to Qualify as a Professional Investor

Published 8 October 2021

PrintCategory: AIFs

The EU Commission has, as part of its strategy for retail investors, completed a consultation process that, among others, invited the industry to share its views on the existing professional investor categorization, including the introduction of a new category of professional investors, in MiFID II – see more here.

Currently, under MiFID II, retail investors are defined as those that do not qualify as professional investors and are subject to a number of additional investment protection measures, including additional disclosure information. In its consultation paper, the EU Commission suggests that for certain investors that currently fall under the retail investor category, these additional investment protection measures are not necessary. Therefore, the creation of a new category of professional investors would likely give a subset of investors a broader and more comprehensive access to alternative investment funds.

Next Step: The EU Commission expects to submit a comprehensive legislative package in the second quarter of 2022 as part of its strategy for retail investors, which, among others, will include a proposal that amends the criteria required to qualify as a professional investor .

Tags:  Marketing


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