Which one of the following types of investors CANNOT be automatically treated by a MiFID investment firm as a professional client?

• A. Pension funds
• B. Banks
• C. Life assurance companies
• D. Companies

Answer: (D)

Under MiFID, some investors are automatically treated as professional because of their nature and size. These per‑se professional clients include institutions like pension funds, banks, and life assurance companies, which regulators recognize as having the experience and resources to handle sophisticated investment decisions. A generic company, however, is not automatically considered professional. It would only be treated as professional if it meets the MiFID criteria for large undertakings (two of three: balance sheet total, net turnover, own funds) or after a formal assessment by the firm. So the type that cannot be automatically treated is a generic company.