Overview to Knowledge and Experience

Introduction to Knowledge and Experience

The Knowledge and Experience assessment is a guide to how well-equipped an investor is to understand what they are investing in.

This is elicited through their knowledge of, and experience with, investing in general (and specific investment types, where applicable). It includes personal investment history, relevant professional experience, confidence, and their understanding of basic investment principles.

The investor receives an overall rating of low, medium or high, presented in a traffic light system of red, amber and green, as well as being broken down into the categories noted above.

Where an investor has low knowledge and experience, Compass will reduce the investor’s Suitable Risk Level by two profiles. This is gradually released over time as knowledge and experience is acquired.

Where an investor has medium knowledge and experience, their Suitable Risk Level is reduced by one profile.

The extent to which knowledge and experience affects the Suitable Risk Level is shown in the adviser report.