Trading in Products without Investment Advice


The Appropriateness test does not apply in the case of some kinds of ‘non-advisory’ transactions. This service can be described as Execution-only. The circumstances where the test does not apply are as follows:

  • the product involved does not have to be a ‘complex’ product;

  • You have chosen to contact the firm to carry out your transaction (i.e. at your own initiative). This means that you are not responding to a personalised approach to you from the firm which was intended to influence you in respect of a specific product or transaction (for example in certain situations when you are buying shares on line).

You will be warned that the firm is not exercising any judgement on your behalf.

In such cases, you do not have to answer any questions about your investment knowledge and experience, financial situation or investment objectives. The firm may of course ask you questions for other purposes, particularly if you are a new customer.