MiFID categorizes clients into three groups:

• non-professional client (retail client),
• professional client,
• eligible counterparty.

The categorization is related first of all to the level of protection and quantity of information the client receives. Tatra banka is responsible for client categorization not only of existing clients but also of all new clients who are interested in using the Tatra banka services as a securities dealer.

Non-Professional Client (Retail Client)

This category of clients contains in particular natural persons and legal persons who do not fulfill the criteria determined by law. In compliance with MiFID these clients are regarded as the least cognizant and experienced on the financial markets and that is why they gain the highest level of protection (e.g. Tatra banka measures the appropriateness or suitability of a respective kind of investment service and financial instrument based on the appropriateness test or suitability test taken by the client) and the maximum amount of information about us, about the financial instruments, the risks connected with them, etc.

Professional Client

Mostly big legal persons are classified as professional clients. In compliance with MiFID the listed clients are considered being sufficiently cognizant and experienced. That is why they get a lower level of protection and information (e.g. Tatra banka does not measure the appropriateness of financial instruments or investment services for clients).

Eligible Counterparty

Clients who do not need any protection and neither receive information from us belong into the category eligible counterparty. In compliance with MiFID it concerns first and foremost banks, insurance companies, holding companies, towns, public authorities and similar subjects.

Categorization Model in Tatra banka

At Tatra banka we regard all branch and private-banking clients as non-professional (retail) clients thus they automatically gain according to law the maximum level of protection and maximum amount of information.

A Treasury client can be classified as non-professional client, professional client or eligible counterparty.

According to MiFID every client has the right to request being reassigned to another category. The bank does not have to grant the client's request in his/her own interest as when being reassigned to a category with a lower level of protection the client could get an inadequately lower amount of information.