For this classification, we will assess the investor's level of knowledge and experience of different financial products and services, with the aim being to determine whether the investor has the ability to understand their characteristics and the risk and return profile. This assessment takes into consideration, among other aspects, the investor's previous experience with the different products and services, their academic qualifications, and their proven level of knowledge on these products, evaluated based on their answers to a number of questions in the knowledge assessment.
Under MiFID II, except in situations where the acquisition of a specific non-complex product or service occurs at the Customer's sole initiative and the Customer does not resort to loans to acquire said product or service, Best Bank will always assess the proper character of the operation. In other words, it will assess whether the investor's knowledge and experience is sufficient to understand the characteristics of the product or service in question and the risk and return profile. Therefore, if you receive a warning when purchasing or subscribing to a product or service that such product or service is not appropriate for your investor profile, this means that Best Bank considers that your knowledge and experience is insufficient to understand the characteristics and risk and return profile of that product or service. You may, however, continue with the operation if you disagree with the assessment carried out by Best Bank, thus waiving the protection associated with the suitability assessment, and if you consider that you have sufficient and necessary experience to understand the inherent risks.
According to the answers given in the investor profile questionnaire, investors can be classified as:
Level of knowledge | Investor experience |
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Beginner | Investor with basic knowledge who does not necessarily have previous knowledge or experience of similar financial products, but does have the ability to understand the product and its risk and return profile, and to make an informed investment decision based on the information available in the documentation of the approved and authorized offer. |
Informed | Investor with intermediate knowledge of the financial products in question who is able to make an informed investment decision based on the documentation of the approved and authorized offer, and also has the knowledge and ability to understand the specific risks identified in the offer documentation that may result from previous experience of investing in similar financial instruments. |
Advanced | Investor with advanced knowledge and a comprehensive understanding of the financial product, its risk and return profile, likely resulting from significant experience in the financial sector and/or frequent trading of financial instruments of a similar nature, risk and complexity. |
Expert | Investor with expert knowledge and extensive understanding of the financial product and its risk and return profile, associated with experience in highly specialized financial products such as CFDs, Forex, Options, Warrants or Futures. |