Assetz Capital rolls out appropriateness test ahead of regulatory changes
ASSETZ Capital has already made its appropriateness test available to investors, ahead of regulatory changes next month.
From 9 December, investors will have to complete appropriateness tests to place new money on a peer-to-peer lending platform.
P2P business lender Assetz Capital has revealed details of its test and made it available to complete immediately if an investor wishes.
It consists of seven multiple choice questions and users must get at least 70 per cent correct to pass.
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There are some ‘critical questions’ that must be answered correctly.
There is no limit to how many times the test can be taken.
“These ‘critical’ questions relate to things where we believe that there really isn’t any room for confusion or doubt,” Assetz Capital said in a note to investors.
“To give you an example – and without wishing to give too much away in terms of the questions – we don’t think that someone should be able to pass the test if they don’t understand that their capital is at risk, even if they get all of the other questions right. We’re not trying to be harsh or make the test difficult, we’re simply trying to protect those that need it most.
“The test provides feedback after each question, helping to round out your knowledge and make sure that you’re making properly informed choices.”
Meanwhile, LendingCrowd has revamped the investor section of its website to provide more information on individual loans and borrowers.
It has added extra information such as how up to date a borrower is with repayments, whether they are repaying just capital, interest or both and the credit band of the loan.
Investors can also now see any fees a borrower is due to pay or has paid.