How the appropriateness assessment works
Under the Swedish Securities Markets Act, the bank must ensure that you have the knowledge and experience required to trade in securities. This is called an appropriateness assessment and is designed to protect those who are active in the securities market.
How is the appropriateness assessment conducted?
Classification of instruments
The directive stipulates that all clients who trade in financial instruments must be divided into three distinct categories. This is to allow client protection to be tailored to the needs of each individual. Private individuals and companies are considered to be retail clients. Larger companies and public sector organisations come under the category of professional clients. The final category includes government authorities and central banks, for example.
The different client categories