Qualified Investor

Under MiFID II Annex II, a Qualified Investor is an entity or individual meeting professional-client status via thresholds including financial portfolio of at least €500,000, significant experience with complex financial products, and large institutional counterparty classification, entitled to reduced regulatory protections compared to retail investors.

Qualified Investor status recognizes that sophisticated market participants possess knowledge, experience, and resources to assess investment risks without extensive retail protections. Categories include authorized financial institutions, large enterprises meeting size thresholds, national and regional governments, central banks, international organizations, and individuals requesting professional treatment who meet wealth and experience criteria.

MiCA references this classification when restricting high-risk crypto product offerings including leveraged tokens, complex derivatives, and certain DeFi exposures to professionals only. Qualified status also applies to on-chain token issuances, ensuring CASPs tailor custody arrangements, disclosure practices, and suitability assessments for expert clients. Qualified Investors may opt out of protections including detailed risk disclosures, appropriateness assessments, and best execution reporting, though they retain fundamental protections against fraud and market manipulation. The classification enables CASPs to offer sophisticated products and services to institutional and high-net-worth clients while maintaining enhanced retail protections for mass-market participants.