The appropriateness assessment related to the subscriptions of financial instruments or loans on the Walliance portal, which is carried out in the interest of the investor, is one of the mechanisms for the protection of users of the Portal provided for, in the crowdfunding sphere, by Regulation (EU) 2020/1503 and its implementing legislation, as well as with reference to investment services, by Delegated Regulation (EU) 2017/565, as recalled by the Intermediary Regulations.
The appropriateness assessment consists of verifying that the investor has the level of experience and knowledge necessary to understand the risks involved in the financial instrument he or she intends to purchase, specifically assessing experience, investment objectives, financial situation, and basic understanding of the risks associated with investing in general and the types of investments offered on the platform.
Through the appropriateness assessment, Walliance verifies that the investment is in line with the Investor's knowledge and experience characteristics resulting from the responses provided to the appropriate questionnaire. The information is collected before the investment is made. In order to arrive at a reliable assessment of the investor's knowledge and, therefore, to be reasonably certain that the investments planned by them can be said to be appropriate, the questionnaire is passed by obtaining a score of at least 70% of the total score.
The appropriateness assessment remains valid for 1 year. It will be possible to repeat the questionnaire after 90 days from the last completion. Where the criteria and weightings used to assess appropriateness are changed, Walliance reserves the right to require investors to repeat the questionnaire again before the 1-year period has expired.
If the outcome of the questionnaire is positive, Walliance confirms to the Investor that he/she can proceed to make the investment through the Portal. The information provided is the essential element for the proper evaluation of the financial instruments offered on the Portal and the related risks; therefore, it is in the Investor's interest to provide complete, timely, truthful, and up-to-date information, as well as to promptly inform the Portal of any relevant changes. In particular, Walliance assesses whether the investment of the Portal client is appropriate, taking into account the answers provided to the questionnaire questions and the fact that all operations that will be concluded on the Portal refer to investments characterized by the highest degree of risk of loss of the entire invested capital and illiquidity of the purchased financial instrument.
If the result of the questionnaire is negative, the investor will be notified of the insufficient result and advised against making investments through the Portal, as it was inappropriate in relation to the level of awareness of the characteristics of the instruments intended to be subscribed to and the related risks.
In any case, the investor will not be prevented from proceeding with the investment.
In the event that the (potential) investor, does not provide all or some of the answers provided by the questionnaire to assess the appropriateness of the investment, the Portal provides a blocking mechanism that does not allow in any way to enter the investment order, thus limiting any possible operativitỳ by the user.
For more details regarding the appropriateness assessment, click here.