The appropriateness assessment relating to the subscription of the Walliance portal's financial instruments is carried out in the investor's interest. It represents one of the Portal's User protection mechanisms envisaged by Consob Regulation No. 18592/2013 and subsequent updates (hereinafter, the "Regulation"). It consists of verifying that the Investor has the necessary level of experience and skills to understand the risks of the financial instrument he intends to purchase.
By assessing the appropriateness, the Manager verifies that the investment is in line with the characteristics of skills and experience of the Investor highlighted by answering a specific questionnaire. The information is collected before the investment takes place. A reliable assessment of the investor's skills and, therefore, the reasonable confidence that their planned investments can be deemed appropriate, requires that the questionnaire is passed with a minimum score of at least 70% of the total score.
If the investor qualifies for risk profiling, he/she can proceed with the investment. The answers will remain valid for one year, after which it will be necessary to fill in the questionnaire again in order to continue investing.
If, on the other hand, the minimum score is not achieved, the investor is informed of the insufficient result and advised not to invest because of his insufficient financial knowledge. In any case, the investor will not be prevented from proceeding with the investment. The questionnaire can be repeated at any time.
Therefore, it is in the Investor's interest to provide complete, timely, truthful and updated information, as well as promptly inform the Portal of any significant changes. In particular, the Manager assesses whether the investment of the Portal client is appropriate, taking into account the answers provided to the questionnaire and the fact that all operations to be finalized on the portal refer to investments whose degree of risk of the entire capital loss is highest, due to the illiquidity of the purchased financial instrument.
If the Manager has the necessary information, then he can carry out the appropriateness assessment and warn the Investor in the event of any impropriety. In any case, taking into account the Manager's warnings, in case of inappropriate operation, the Investor can either decide to cancel the operation or confirm its request for execution, even when the information he/she provided are incomplete. If the Manager lacks the necessary information, he informs the Investor of the impossibility of carrying out the appropriateness assessment. Therefore, he requests the Investor to confirm his/her willingness to continue (by completing the order entry anyway) or cancel the operation.
For more information on the appropriateness assessment, please click here.