Confidence is a measure of how capable and comfortable an investor feels about their ability to make good financial decisions.
Clients are given a Confidence score on a scale of three: Low, Medium and High.
Client-facing descriptions for each level are shown below:
|Low||You have low confidence, which means you may have limited experience with investing, be relatively unaware of current market conditions, and might require more guidance or background information when considering your options.|
|Medium||You have medium confidence, which means you tend to be reasonably sure in your ability to make good financial choices, but may occasionally feel uncertain about the best course.|
|High||You have high confidence, which means you are generally happy making complex choices, considering a lot of information, and weighing many options.|
How to use it
Suitability Compass uses Confidence as part of the Knowledge & Experience assessment.
Generally, clients with low Confidence may need more guidance and support when making financial decisions.