What should I do if I m unsure about my classification?

Consult a financial advisor or legal professional to clarify your status and options.

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Non-Institutional Customer

Understanding Non-Institutional Customer: Key Legal Insights

Q: Can a non-institutional customer access institutional investment products?

Access may vary based on specific regulations and the nature of the investment products.

Definition & Meaning

A non-institutional customer is defined as any individual or entity that does not fall into specific institutional categories. This includes anyone who is not:

A bank or savings association
An insurance company or registered investment company
An investment adviser registered under the Investment Advisers Act of 1940
An entity with total assets of at least $50 million

In essence, non-institutional customers are typically individual investors or smaller entities that do not meet the criteria of larger financial institutions.

Table of content

Legal Use & context

The term "non-institutional customer" is commonly used in financial and banking regulations. It is relevant in contexts such as:

Government securities sales practices
Investment regulations
Financial advisory services

Understanding this classification is crucial for compliance with various legal frameworks and for determining eligibility for certain financial products or services. Users can manage related forms and procedures through resources like US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Here are a couple of examples of non-institutional customers:

A retired individual investing their savings in government bonds.
A small business with total assets of $30 million seeking to invest in mutual funds. (hypothetical example)

Relevant laws & statutes

The definition of non-institutional customer is primarily referenced in:

12 CFR 13.2 - Government Securities Sales Practices

Comparison with related terms

Term	Definition
Institutional Customer	A financial entity such as a bank, insurance company, or investment adviser.
Retail Investor	A non-professional individual investor who buys and sells securities for their personal account.

Common misunderstandings

What to do if this term applies to you

If you identify as a non-institutional customer, consider the following steps:

Review your investment options and eligibility for different financial products.
Utilize resources like US Legal Forms to access necessary legal templates for your investments.
If you have complex financial needs, consult with a financial advisor or legal professional.

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Quick facts

Attribute	Details
Definition	Individuals or entities not classified as financial institutions
Asset Threshold	Less than $50 million
Regulatory Context	Government securities sales practices

Key takeaways

Frequently asked questions

What is the difference between a non-institutional customer and a retail investor?

While both terms refer to individual investors, a retail investor specifically refers to non-professional individuals, whereas non-institutional customers can include smaller entities.