Under MiFID II (implemented in Sections 63 et seq. of the WpHG), BaFin classifies investors into three main categories to ensure an appropriate level of protection. The classification is based on knowledge, experience, and financial capacity.

1. Retail Clients

• Definition: Customers who are not classified as professional customers or eligible counterparties.

2. Professional Clients

• Definition: Clients who have sufficient experience, knowledge, and expertise to make investment decisions and assess risks appropriately.
• Who is included:
  • Companies that require a license to operate in the financial markets (e.g., banks, securities firms, insurance companies, asset management companies).
  • Large companies that meet certain size criteria (at least two of the following three criteria: total assets of €20 million, net sales of €40 million, and equity of €2 million).
  • Public institutions, national governments, central banks.
• Opt-in/Opt-out: Under certain conditions, retail customers may, at their own request, be classified as professional customers if they meet specific experience criteria ("opt-in" or "upgrade").

3. Eligible Counterparties

• Definition: This category is the highest level and pertains to transactions between specialized financial market participants.
• Who is included: Primarily securities firms, credit institutions, insurance companies, and pension funds.

AAA is a financial services company licensed under Section 15 of the WpIG that exclusively engages in the analysis and marketing of investments in alternative investments and complex financial instruments to highly qualified institutional investors who are classified as “eligible counterparties” under Sections 63 et seq. of the WpHG.