What is the definition of a wholesale client?

A wholesale client is defined as someone who does not fit the definition of a retail client. In the financial services sector, retail clients typically refer to individual consumers or small businesses that require personalized financial advice and services suited to their specific needs. In contrast, wholesale clients often include larger institutions, sophisticated investors, or high-net-worth individuals who engage in transactions with a higher level of financial complexity or investment size.

The distinction is crucial for regulatory reasons, as wholesale clients may have different rights and protections compared to retail clients, given their experience and understanding of financial markets. This classification helps ensure that the appropriate level of service and regulatory standards is applied based on the client's financial acumen and investment strategy.

Identifying a wholesale client often involves evaluating various factors, such as the client's investment experience, financial status, and the nature of the services they require, rather than simply their wealth or status as a consumer.