Questionnaire to invest in bonds
Why do I have to complete a questionnaire?
It's our regulatory obligation to ensure that only clients who understand the characteristics and risks of a complex financial instrument (such as complex bonds) are able to trade such products. The questionnaire helps us to assess your knowledge and experience, allowing us to determine if these products suit your investor profile.
Key features of complex bonds that make them different from non-complex bonds
Complex bonds differ from non-complex bonds due to certain features that make them harder for investors to understand.
These features include:
- Embedded derivatives, which can significantly influence the bond's value
- Structured returns that depend on the performance of underlying assets or indices (making future payouts less predictable)
- Bail-in mechanisms, where, in the event of the issuer's financial distress, the bondholder's investment could be converted into equity or reduced to help recapitalize the issuer (which could lead to significant losses)
These elements contribute to the complexity and risk of such bonds, distinguishing them from the more straightforward, non-complex bonds.