Questionnaire to invest in bonds
Why do I have to complete a questionnaire?
It's our regulatory obligation to act in our clients’ best interest, and assess whether an investment in complex financial instruments (such as complex bonds) is appropriate for each client considering his knowledge and experience in the specific investment field.
The questionnaire helps us to assess your knowledge and experience, allowing us to determine if these products are appropriate for you.
Key features that set complex bonds apart from others
Complex bonds differ from non-complex bonds due to certain features that make them harder for investors to understand. These features include:
- Embedded derivatives that can impact bond value
- Structured returns based on underlying assets or indices (making payouts unpredictable)
- Bail-in mechanisms where, in financial distress, the bondholder's investment may be converted to equity or reduced to help recapitalise the issuer
These elements contribute to the complexity and risk of such bonds, distinguishing them from the more straightforward, non-complex bonds.