Complex instruments

In order to trade an investment which is considered to be a ‘complex instrument’ you must first complete the online appropriateness assessment.

Complex instruments are investments which require specialist knowledge and understanding to trade.

Examples of complex instruments include warrants, rights and convertible bonds.

Investments which match any of the following criteria are also considered to be ‘complex instruments’:

Investments which may not be available to trade at prices which are publicly available.
An investment which involves actual or potential liability which exceeds the cost of acquiring it.
Investments which do not have adequately comprehensive information publicly available. Such investments are therefore unlikely to be understood in enough detail by the average customer to enable them to make an informed judgement about trading it.
A derivative or other security which gives the right to trade or acquire an investment within a set timeframe. Also, investments which can be traded for a price determined by an underlying index, such as currencies, interest rates, yields or commodities.

Exemptions

Certain investments are automatically considered to be "non-complex" and are exempt from the requirement to take the appropriateness test. These are:

Shares which are traded on a regulated market or an equivalent third country market.
Bonds or other forms of securitised debt.
Units in a scheme authorised under the UCITS directive.