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C. Client suitability and assessment

1.
VASPs providing ETD Services shall only provide ETD Services to clients that satisfy all of the following requirements (the "ETD Clients")— 
 
a.the VASP has assessed the client and deems the client, based on reasonable grounds, to understand all major risks associated with the ETDs and ETD Services that will be provided to the client; 
b.the VASP has assessed the client and deems the client, based on reasonable grounds, to have the ability to meet all financial obligations in relation to the ETDs and ETD Services that will be provided to the client;
c.the client has accepted the ETD Services Agreement; 
d.the client has been provided with all disclosures related to ETD Services, required to be provided by the VASP in this Part V of the Exchange Services Rulebook; and
e.the VASP is not aware, and has no grounds on which it ought reasonably to be aware, that the client is serving any ban or suspension from accessing or using ETD Services, or similar services, on any venue either inside or outside of the Emirate.
 
2.
Where ETD Services are provided to Retail Investors, VASPs shall consider the following factors as a minimum when undertaking the suitability assessment and determination of the client's understanding of the major risks associated with the ETDs and ETD Services, required in Rule ‎V.C.1.a above, in respect of each Retail Investor—
 
a.their knowledge and experience in trading in ETDs;
b.their investment objectives and financial rationale for entering into ETDs; 
c.their financial position including, but not limited to, the proportion of their net worth which the client intends to trade in ETDs;
d.whether the client's risk appetite is aligned with the proportion of their net worth which they intend to trade in ETDs; 
e.whether the client's risk appetite is aligned with the risk and reward profile of the ETDs which they intend to trade; and
f.the client's ability to bear sudden and significant losses. 
 
3.VASPs providing ETD Services shall collect all necessary information from clients for the purpose of assessing the client's suitability in accordance with this Rule ‎V.C of the Exchange Services Rulebook. VASPs are entitled to rely on information provided by the client, unless they are aware, or ought reasonably to be aware, that the information is manifestly out of date, inaccurate, or incomplete. 
4.Where a VASP has assessed that any ETD or ETD Services are not suitable for a particular client or classification of client at any time, the VASP shall ensure that the client cannot access those ETD Services or trade in the ETDs with immediate effect. The requirement in this Rule ‎V.C.4 applies both at the time of carrying out the initial client suitability assessment required in Rule ‎V.C.1 of this Part V of the Exchange Services Rulebook, and on an ongoing basis.
5.VASPs providing ETD Services must ensure that full and orderly records of all client suitability assessments are kept for at least eight (8) years.
6.
Training and educational tools. To the extent that VASPs providing ETD Services provide training and/or educational tools to clients, in order to improve the clients’ level of knowledge and understanding of the risks associated with ETDs and the ETD Services, such training and/or educational tools must not be designed solely for the purposes of the client passing an assessment without developing such knowledge and understanding. When designing such training and/or educational tools, in order to comply with this Rule ‎V.C.6, VASPs must consider the following— 
 
a.the client's level of understanding both prior to and after accessing any information and/or educational tools provided by the VASP; 
b.the nature and complexity of the information and/or educational tools; and
c.whether it is necessary to impose a delay between the client completing such training and/or educational tools before undertaking the suitability assessment.
 
7.
VASPs providing ETD Services shall establish, implement, and maintain policies and procedures to ensure that they comply with this Rule ‎‎V.C at all times.