Qualified Financial Adviser (QFA) Regulations Exam 1 Practice Test

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Harry, a client of a MiFID investment firm, has asked the firm to classify him as a professional investor for the purposes of arranging a particular investment for him. The firm may classify Harry as a professional investor only if he:

(i) has an investment portfolio of at least €500,000. (iii) is aged 50 or over. (i) and (ii) (i) and (ii) only.

Correct Answer:

(i) and (ii)

Explanation:

Under MiFID, being treated as a professional investor isn’t based on age or a single fact. It relies on meeting defined criteria that show substantial investment activity and market experience. The decisive requirement here is having both a sizeable investment portfolio (at least €500,000) and appropriate professional experience or knowledge in financial markets. Age alone does not qualify someone as a professional investor, and meeting only one of these criteria isn’t enough. Therefore, the firm can classify Harry as a professional investor only if he satisfies both conditions together.

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