General Assembly Resolution #642 “Sophisticated Investors Protocol” (Category: Regulation; Area of Effect: Consumer Protection) shall be struck out and rendered null and void.
Knowing that Article 1 of GA#642 grants member states’ “competent authorit[ies]” the power to define who is, or is not, a “sophisticated investor” based on various criteria, while Article 2 requires them to only allow sophisticated investors to access certain financial products,
Observing that Article 1 gives each competent authority the power to define who is a sophisticated investor based on such criteria such as “wealth and income” and “education, experience, and knowledge of instruments and products,” which are not outlined by this (or any other) resolution, but are therefore presumptively within each competent authority’s margin of appreciation, and
Convinced that there is accordingly no need for GA#642 to remain on the books, since member states would be allowed to continue restricting (or denying) access to high-risk financial products by investors who they deem to be inexperienced based on their wealth, income, or knowledge of such products, and to keep using their own definitions of these terms to justify such restrictions, whether or not the target resolution is in force…
The General Assembly hereby repeals GA#642 “Sophisticated Investors Protocol.”