Complex Instruments Appropriateness Test

where_are_we

I have been asked by Jarvis Investment Management Ltd (I have a X-O ISA) to complete a "Complex Instruments Appropriateness Test"(CIAT) because I hold an "investment deemed a complex instrument". This is due to Mifid 11 regulations coming into force on 3/1/18. Jarvis do not explicitly say what my "complex" investment is (possibly a REIT?). I can continue to hold this present investment but if I wish to purchase further complex instruments I have to complete a CIAT. I know this is to safeguard investors like myself. Is it better I am excluded from unsuitable investments?

ivormonee

where_are_we wrote: »

I know this is to safeguard investors like myself. Is it better I am excluded from unsuitable investments?

Isn't the point of the test to enable the decision to be made as to whether such investments may be suitable for each individual investor on a case by case basis? Your answers to the questions of the test should determine your inclusion/ exclusion I would have thought as it is those answers that would determine the suitabilty of the investments that fall within the scope of the new regulatory regime.

DairyQueen

I have also been asked to complete this test (with HL). In my case a direct holding in a US listed stock has been identified as a 'complex instrument'. No idea what the criteria is for 'complex' but it seems to be quite wide.

dbdbdb

I have just filled in the test and sent it off. I already own 6 stocks that I can not trade unless I pass the test. I assume this means I can't sell them!

Anyone know how the test is judged?

grey_gym_sock

hopefully, you should be able to sell your existing holdings, though not to buy any more, without taking/passing the test.

dunstonh

. Is it better I am excluded from unsuitable investments?

if you have to ask that question then it probably means it is better you avoid them. That may sound a little trite but the point is that if you dont know if its an issue then it means it is an issue.