This Client Categorization & Suitability Disclosure (“Disclosure”) outlines how Riyadex Financials (Pty) Ltd. (“the Company”) classifies clients and assesses suitability under South Africa regulatory standards.
It forms an integral part of the Client Agreement.
The FSCA requires financial institutions to categorize clients to ensure that the services and financial products provided are appropriate for their experience and risk tolerance.
This document explains:
RIYADEX classifies clients into the following categories:
A Retail Client is an individual client who does not qualify as a Professional Client.
Protections for Retail Clients include:
Most clients are classified as Retail Clients.
A Professional Client is one who possesses:
a) Sufficient trading experience;
b) High financial sophistication;
c) An ability to understand the risks involved in leveraged products.
To qualify, a client must meet two (2) of the following:
Protections for Professional Clients are reduced, meaning:
The Client must request Professional status in writing and provide evidence.
Institutional Clients include:
These clients receive no retail-level protections.
3.1 Upon completing the account application, RIYADEX will notify the Client of their category.
3.2 Unless the Client meets professional criteria, they will be classified as a Retail Client.
3.3 Clients may request a different classification by sending a written request.
Clients may request:
4.1 Retail → Professional
Requires evidence of meeting the professional criteria.
4.2 Professional → Retail
The Company may downgrade a client if it determines that additional protections are necessary.
4.3 Institutional → Professional/Retail
Rare and approved only under special circumstances.
The Company may decline requests at its discretion.
The FSCA requires firms to obtain information to determine whether leveraged trading is suitable for the client.
During the application process, the Client must provide information regarding:
The Company uses this information to determine whether leveraged trading is appropriate for the Client.
6.1 If Trading is Considered Suitable
The account will be approved.
6.2 If Trading is Considered Not Suitable
The Company will:
The Company may also choose to reject or restrict account access if risks are deemed excessive.
The Client agrees that:
Failure to provide accurate information may result in account restrictions or termination.
8.1 The suitability test is based solely on information the Client provides.
8.2 The Company does not independently verify all information unless required.
The Company is not responsible for:
RIYADEX may perform an appropriateness test to determine whether the Client understands:
If the Client does not demonstrate adequate understanding, a warning will be issued.
10.1 Client categorization may be reviewed periodically.
10.2 The Company may request updated documents or financial information.
10.3 The Company may adjust the client category if:
By opening an account with RIYADEX, the Client acknowledges that:
By agreeing to the Client Agreement, the Client automatically consents to:
