What is an appropriateness test?
New rules published by the FCA include a requirement to assess whether peer-to-peer is appropriate for new and existing direct investors.
To meet this requirement, we've introduced a four question test, for which all questions must be answered correctly. This will allow investors to demonstrate their understanding of investing in Octopus Choice. It will need to be completed before making a new investment (unless the investment is done by an ongoing direct debit set up prior to 9th December 2019).
The test is not designed to catch out investors. It's there to ensure that investors are fully aware of the risks of investing in Octopus Choice. A reminder of the risks is available here.
Investors will be given several attempts to answer all the questions correctly, and a refresher on the risks of investing in Octopus Choice will be provided prior to completing the test. If an investor still doesn’t pass, we will recommend speaking with us to talk through the risks and options for proceeding with the investment.