<!-- headlesslaw {"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2018-05-25","gaps":[],"covered":["ESMA Q&A 1852 — Q&A — Client categorisation [Answer Published] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"the ESMA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/mifid-ii/level-3/q-and-a/esma/esma-qa-1852-client-categorisation","url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1852-client-categorisation","title":"ESMA Q&A 1852 — Q&A — Client categorisation [Answer Published]","family":"l3","work_id":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1852-client-categorisation","status":"answer published","force_status":null,"date_state":"current","requested_date":null,"as_of":"2026-11-01","applies_from":null,"application":null,"version_label":"ESMA Q&A register, 25 May 2018","check":{"against":"the ESMA publication","on":"2026-10-26"},"check_result":"matched","official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1852","valid_from":"0001-01-01","valid_until":null,"revision":1,"content_id":"33643e95636c3245","change_date":null,"nearest_versions":["2018-05-25"],"first_text_date":null,"correction_applies":false,"versions":["2018-05-25"],"version_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1852-client-categorisation/versions/2018-05-25","revision_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1852-client-categorisation/versions/2018-05-25/rev/33643e95636c3245","versions_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1852-client-categorisation/versions","relations_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1852-client-categorisation/relations","source_line":"Answer by ESMA, published in its Q&A tool · not legislation · published 25 May 2018 [Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2018-05-25","question_submitted_on":"2018-05-25","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1852, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1852, column 'Date of submission'"}},"adoption":null}}} -->
---
title: "ESMA Q&A 1852 — Q&A — Client categorisation [Answer Published]"
shortTitle: "ESMA Q&A 1852 — Q&A — Client categorisation [Answer Published]"
answer_id: ESMA_QA_1852
topic: "Client categorisation"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFID II"
mifid_level3: true
mica_level2: false
legal_basis: "MiFID II"
date: 25 May 2018
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1852
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 25 May 2018"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1852"
check_status: matched
verified: true
last_checked: 2026-10-26
checked_against: "the ESMA publication"
source:
  prepared_by: "ESMA"
  published_by: "ESMA"
  published_in: "ESMA Q&A tool"
  evidence:
    prepared_by: "ESMA Answer"
    locator: "ESMA Q&A entry ESMA_QA_1852: field 'ESMA Answer', no 'Answer provided by' line"
document_type: "qa_answer"
legal_nature: "not_legislation"
addressees: "not stated in the document"
dates:
  published_on: "2018-05-25"
  question_submitted_on: "2018-05-25"
  locators:
    published_on: "ESMA Q&A Excel export ESMA_QA_1852, column 'Esma responses', date line"
    question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1852, column 'Date of submission'"
lifecycle_label: "Answer Published"
---

**Answer by ESMA, published in its Q&A tool · not legislation · published 25 May 2018 [Answer Published]**

*Answer Published · ESMA Q&A register, 25 May 2018 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1852)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1852 — Q&A — Client categorisation \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1852 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 25 May 2018; question submitted 25 May 2018 |
| **Legal basis** | MiFID II |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Client categorisation**

### Question

How should leveraged financial instruments be taken into account in order to assess the size of a client’s financial instrument portfolio in accordance with the second limb of the fifth paragraph of Section II.1 of Annex II of MiFID II?

***

### Answer

\[ESMA 35-43-349 MiFID II Q&As on Investor protection Ch. 11, question 6\]

The size of a client’s financial instrument portfolio should exceed the threshold of EUR 500,000 in order to fulfil the requirement in the second limb of the fifth paragraph of Section II.1 of Annex II of MiFID II.

If an investment portfolio contains leveraged positions, or financial instruments for which a margin is deposited, the net equity of the specific position or positions (i.e. the margin deposited or paid for the financial instrument plus any unrealised profits or unrealised losses due to changes in the value of the underlying) should be used in order to determine the size of the financial instrument as part of the portfolio. An investment firm should not use the notional value of the financial instruments, as this value does not reflects the actual size of the portfolio of the client.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1852)