AJ Bell Complex instrument appropriateness assessment test

vikkiew

Has anyone taken it? I saw it at the bottom of the 'Updated my details' section for the first time today. I haven't been to that page before so I don't know if this is new or has been there for years. Does it show for everyone or does it depend on conditions like size of portfolio and length of being a customer? Does a pass allow trading a ETF without KID? AJ Bell doesn't have options trading so I can't imagine what other 'complex instrument' this would unlock? Has anyone taken and failed? What happens? Any consequences? Can it be taken again after certain amount of time?

kuratowski

I think it's for structured notes.  According to their website* you need to complete the form to invest in warrants / covered warrants.  But anyway, regardless of the product, if you buy anything which needs you to be classified as a sophisticated investor, you are losing a level of regulatory protection, I would think twice about that.

* https://www.youinvest.co.uk/our-services/investment-options

Prism

Yes I have filled it in to allow me to invest in infrastructure and private equity trusts.

masonic

VCTs are also subject to this test.

maxsteam

vikkiew said:

Has anyone taken and failed? What happens? Any consequences? Can it be taken again after certain amount of time?

If you fail the test, you simply take it again. Don't worry about it.

Thrugelmir

maxsteam said:

vikkiew said:

Has anyone taken and failed? What happens? Any consequences? Can it be taken again after certain amount of time?

If you fail the test, you simply take it again. Don't worry about it.

Not so much a test. More of a self certification.  No doubt the compliance officer takes a view of what the broker know about their customer and historic trading activity.  

Albermarle

Prism said:

Yes I have filled it in to allow me to invest in infrastructure and private equity trusts.

I am invested in an infrastructure investment trust ( not with A J Bell) and was never requested to fill anything in .
I thought these investments were mainstream anyway ?

Prism

Albermarle said:

Prism said:

Yes I have filled it in to allow me to invest in infrastructure and private equity trusts.

I am invested in an infrastructure investment trust ( not with A J Bell) and was never requested to fill anything in .
I thought these investments were mainstream anyway ?

I think it was GRID that first triggered the requirement. Probably because its battery storage rather than general infrastructure. 

wmb194

Prism said:

Albermarle said:

Prism said:

Yes I have filled it in to allow me to invest in infrastructure and private equity trusts.

I am invested in an infrastructure investment trust ( not with A J Bell) and was never requested to fill anything in .
I thought these investments were mainstream anyway ?

I think it was GRID that first triggered the requirement. Probably because its battery storage rather than general infrastructure. 

No, it's because it decided to list in the LSE's 'specialist fund segment' and this is supposedly meant for professional and institutional investors. Downing Renewables IT (DORE) is an ordinary wind-farm operator and because it decided to list in the same segment most brokers won't touch it. Oakley (OCI) is another example which I used to be able to buy with my other (cheaper) brokers but after it decided to move to this segment only AJ Bell will offer it.  At least AJ Bell gives the option to take this test and allow you to trade in them, as far as I am aware iWeb and the like don't even give this option.

Albermarle

I think A J Bell generally tend to be more orientated to more experienced investors than the other platforms .
For example their regular 'Shares ' magazine and monthly e mails include topics like 'trading strategies' and discussion of individual companies etc .
Whilst the info I get from HL and Fidelity tends to be more general about bond markets or China and things like that.

Thrugelmir

wmb194 said:

Prism said:

Albermarle said:

Prism said:

Yes I have filled it in to allow me to invest in infrastructure and private equity trusts.

I am invested in an infrastructure investment trust ( not with A J Bell) and was never requested to fill anything in .
I thought these investments were mainstream anyway ?

I think it was GRID that first triggered the requirement. Probably because its battery storage rather than general infrastructure. 

No, it's because it decided to list in the LSE's 'specialist fund segment' and this is supposedly meant for professional and institutional investors. Downing Renewables IT (DORE) is an ordinary wind-farm operator and because it decided to list in the same segment most brokers won't touch it.

Often it's due to the lack of market liquidity in a stock. Where either one or a number of shareholders hold a controlling interest in the company. In addition to the names mentioned already. Utilico Investments Limirted is another. Although listed on LSE. The company is incorporated in Bermuda. There's an incestous relationship with the appointed investment manager to add to the mix. Held this for around 6 years before I was initially blocked from trading the stock. When it moved segment following a share back policy.