What distinguishes an Elective professional client from a per se professional client?

An Elective professional client is distinguished from a per se professional client primarily through the requirement to meet specific qualitative and quantitative tests. These tests are designed to assess the client's experience, knowledge, and ability to understand and manage the risks associated with investment decisions.

In contrast, per se professional clients automatically qualify under established criteria, such as being regulated institutions, large undertakings, or high-net-worth individuals, without the necessity for individualized testing. Elective clients, however, choose to be classified as professional clients, indicating their understanding and acknowledgment of the implications of this classification, which requires a deeper evaluation of their experience and financial resources.

This distinction means that while per se professional clients fall into well-defined categories, Elective clients actively engage in proving their qualifications, which can vary from one individual to another based on their unique circumstances and experiences. Thus, option B captures this essential requirement for Elective clients while the other choices do not accurately reflect the differences in classification.