The implementation of MIFID II, alongside the regulator’s Consumer Duty last summer, has meant that platforms now require retail investors to complete an online test, known as an appropriateness assessment, before investing in complex financial instruments.
According to AJ Bell’s website, this is required by the Financial Conduct Authority to ensure investors have the “necessary experience and knowledge”, as dealing in and holding complex financial instruments involves a “high degree” of risk.
In the past week, a number of retail investors have claimed to have been denied from inves…
DIY investor tests to buy investment trusts on D2C platforms risk worsening sector decline
London City skyline with financial buildings, aerial view.