Knowledge & Experience Overall

The individual components are scored on a rating of Low, Medium and High and are then combined into an overall K&E score which is reported on a traffic light system of red, amber and green. 

Knowledge & Experience Overall

Red / Low	You are likely to have limited knowledge and experience of investing, and should invest at a reduced level of risk while you gain experience. Take care to ensure you explore and understand the investment recommendations presented.
Amber / Medium	You are likely to have moderate knowledge about investments and some experience of investing, and should consider investing at a reduced level of risk while you gain experience. Take time to ensure you explore and understand the investment recommendations presented.
Green / High	You are likely to have considerable knowledge and experience of investing, and should therefore invest at the suitable risk level. Despite this, please be mindful of the need to explore and understand the investment recommendations presented.

 

How it works

Where investors Knowledge and Experience is not green, advisers may wish to consider lowering investors overall Suitable Risk Level (also known as Risk level on our API documentation) until sufficient knowledge has been acquired. 

Investor Compass will automatically lower investors Suitable Risk Level by one risk category for Amber levels of K&E and two categories for Red levels of K&E.  Advisers that are not using the financial circumstances assessment will need to manually consider lower levels of K&E when picking the Suitable Risk.