What is the minimum share capital required for a non-MIFID LLP or company to qualify as a per se professional client?

To qualify as a per se professional client, a non-MIFID limited liability partnership (LLP) or company must meet specific criteria set by regulatory authorities. One key criterion is the minimum share capital requirement, which is established to determine the financial robustness and sophistication of an entity engaging in financial transactions.

The correct minimum share capital required is £5 million. This threshold is significant because it signifies that the company has substantial financial resources and implies a level of experience and expertise in financial markets. Entities exceeding this capital requirement are presumed to be more knowledgeable and capable of managing the risks associated with complex financial products, which is why the regulation does not impose the same protections that apply to retail clients.

Options with amounts lower than £5 million, such as £2 million, £10 million, and £1 million, do not meet the established regulatory criteria for qualifying as a per se professional client, underscoring the importance of having robust financial metrics in place to ensure that entities are suitably qualified to receive professional client status.