Appropriateness Assessment Form

You requested our investment in a financial product which we consider to be a Complex Financial Instrument. We must evaluate how suitable the investment is for you because the rules set by our regulator (the FCA) require this assessment before we proceed with your instructions. Our instruction requires your confirmation to proceed after we share our assessment results with you. We will perform a reassessment every 3 years to ensure the investments match your needs and objectives with no material changes in your circumstances.

What is the appropriateness test?

The appropriateness test examines if your knowledge and experience level allow you to comprehend the product features as well as the investment terms and risks to determine if the investment is suitable for you. Determining if an investment matches your knowledge and experience level differs from providing advice about whether that investment meets your needs. We shall not give financial advice on Complex investments. We will not be able to proceed with our assessment unless you answer all relevant questions.

What defines a Complex Financial Instrument?

A complex financial instrument refers to any product that doesn’t meet the criteria for a non-complex instrument. Non-complex financial instruments include shares from recognised stock exchanges and units/shares in UCITS qualifying Collective Investment Schemes, as well as bonds and money market instruments. Examples include (but are not exclusively limited to): Investments such as Shares in Collective Investment Schemes which lack FCA recognition alongside Warrants and Putable or Convertible bonds form part of the non-mainstream pooled investment category.

Thank you for your interest in investing in complex financial instruments with Edale.co.uk. Please complete the following form to help us assess the appropriateness of such investments for you, in compliance with Financial Conduct Authority (FCA) requirements.

Your Details

Full Name (Client):

Email Address:

Phone Number:

Account Number(s) (if applicable):

Account Reference (if applicable):

Please confirm you have read and understood the general risk warning notice regarding complex financial instruments:

I have read and understood the risk warning notice regarding complex financial instruments.

Appropriateness Assessment Questions

1. Investment Objectives and Attitude to Risk

Please tick to confirm your investment objectives and attitude to risk concerning complex financial instruments:

Warrants and other complex instruments are suitable investment products to help meet my investment objectives and attitude to risk. I understand the nature and mechanics of the product, its pricing valuation, sources of risk, and that underlyings may vary between individual shares, indices, baskets, interest rates, commodities and other types. I understand that I may lose the entirety of my original investment. I am aware that the instrument will invariably be cash rather than physically settled, meaning that I will not take delivery of the underlying asset. My investment needs and priorities include leverage and/or hedging and/or cash extraction and/or diversification using derivatives.The statement above is not applicable to me.

2a Investing Experience and Expertise

Please tick all that apply regarding your investing experience and expertise in derivative products:

I am an investor experienced and sufficiently expert in dealing in equities and/or other similar investment instruments, and understand the complexities of warrants and other complex instruments and I am able to assess the risks involved in dealing in them, including the potential price volatility and the possibility that I may lose my capital.I have attended relevant course(s) and/or seminar(s) on warrants and/or derivative products that have given me the necessary knowledge and expertise to understand the complexities of warrants and other complex instruments and am able to assess the risks involved in dealing in them, including the potential price volatility and the possibility that I may lose my capital.I have previous experience and sufficient expertise of derivative products such as traded futures and options, contracts for difference or spread betting and understand the complexities of warrants and other complex instruments and am able to assess the risks involved in dealing in them, including the potential price volatility and the possibility that I may lose my capital.I do not meet any of the criteria set out above.

2b Trading Frequency

Typically, I deal, on an execution-only basis, in securities (e.g., shares, exchange-traded funds, unit trusts, corporate bonds, gilts) or derivatives the following number of times per annum (this trading activity need not have been exclusively with one broker):

2c Trading Duration

I have been trading for the following number of years (this trading activity need not have been exclusively with one broker):

Please select all investment types which you are intending to invest in and confirm that you have read the relevant section in Appendix 1 for each asset category:

I intend to invest in Exchange Traded Products

I intend to invest in Non mainstream pooled investments

I intend to invest in Warrants

I intend to invest in Non-readily realisable investments

I intend to invest in Complex Bonds

Specific Instrument Knowledge

Do you understand that included in a Warrant price is an element called time value and that as a Warrant nears expiry this element will decrease through a process called time decay?

Do you understand that you may not be able to obtain a clear price for this investment due to lack of liquidity?

Do you understand that there may be penalties for early redemption?

Do you understand that investments in securities and derivatives, in general, are subject to market risks that may cause their prices to fluctuate over time?

Do you understand that Warrants can be volatile due to changes in the price of the underlying security?

Do you understand that you may not be able to dispose of the holding at the time you choose due to lack of liquidity?

Do you understand that you may not be able to access your investment at short notice, should you require access to the funds invested?

Do you understand that there can be no assurance that an active trading market for the ETP’s shares will be available at the time you choose to dispose of the holding, which can impact your ability to dispose of the holding?

Do you understand that the more an ETP invests in leveraged derivative instruments, the more this leverage will magnify any losses on those investments, e.g. the value of the ETP’s shares will tend to increase or decrease more than the value of any increase or decrease in its Underlying Index?

Client Declaration and Signature

I acknowledge that this appropriateness test is in place for my protection and confirm that the answers I have provided are truthful. I understand the risks involved in dealing in complex instruments, and declare that I have sufficient knowledge about the product and am able to assess the merits and declare that the product is appropriate in relation to my investment needs and abilities. I also confirm that complex instruments are suitable given my investment objectives and attitude to risk and that I meet at least one of the experience and expertise conditions above, as indicated by a tick in the relevant boxes.

I agree to the above declaration.

Signed (Type Your Full Name):

Date: