Harry, a client of a MiFID investment firm, has asked to be classified as a professional investor. The firm may classify him as a professional investor only if he:

• A. Has a portfolio of at least €500,000.
• B. Has carried out at least 10 similar investment transactions per quarter, over the last four quarters.
• C. Is aged 50 or over.
• D. Has both a portfolio of at least €500,000 and has carried out at least 10 similar investment transactions per quarter.

Answer: (D)

Under MiFID, professional investors can be identified when a client satisfies two of three conditions: a portfolio of at least €500,000, a history of significant transactions (typically at least 10 transactions per quarter over the last four quarters), or professional experience and knowledge in the financial markets. In this scenario, Harry meets both the wealth threshold and the trading activity threshold, so he satisfies two criteria. Age is not a criterion, so it isn’t relevant here. Because he meets two of the three conditions, the firm may classify him as a professional investor. The other options either rely on a single criterion or include an unrelated factor, so they don’t alone establish professional status.