Appropriateness Test and Client Categorisation FAQs

Under UK’s new regulations, we need to categorise your investor profile to ensure that only investors who understand and are aware of the risks associated with crypto asset investments receive promotions.

There are 3 possible categories of investor:

• (i) Restricted,
• (ii) High Net Worth or
• (iii) Sophisticated.

Only users who fit the criteria of one of these categories will be authorised, under UK regulations, to invest in cryptoassets. We therefore invite you to carefully read the criteria.

For example:

You will qualify as a “Restricted Investor” only if:

• you state that you have invested less than 10% of your net assets in high-risk investments in the last 12 months,
• you will invest less than 10% of your net assets in high-risk investments in the next 12 months.

You are considered a “High Net Worth Investor” only if you state that you have an annual income of at least £100,000 or that your net assets are at least £250,000.

These DO NOT include your home (primary residence), your pension (or any pension withdrawals) or any rights under qualifying contracts of insurance.

Please estimate the highest percentage of your net assets you might invest in the next 12 months, based on current circumstances, despite the uncertainty of the future.

This ensures our services are accessible only to investors who understand the risks of crypto asset investing. High-net worth investors should have an annual income above £100,000 or net assets over £250,000.

If none of the categories apply to you, unfortunately, we can't offer our services. This indicates that investing in crypto assets might not be suitable for you due to the potential financial risks.

The Appropriateness Test is a multiple-selection test designed to evaluate your experience and knowledge of the risks associated with cryptoasset trading. It is a necessary step to maintain your ability to trade in crypto and utilise the services provided by SwissBorg.

These are key elements of the UK’s new regulations, aimed at ensuring investors understand the risks and have the necessary knowledge for investing in crypto assets.

Should you not complete successfully these questionnaires, access to SwissBorg products will be restricted until you do so. A reminder banner will prompt you to complete the tests. We encourage you to complete it promptly to resume full access to our services.

You may try as many times as needed. However, after your second attempt, there's a 24-hour wait period before trying again.

Once you have passed the Client Categorisation, which means being classified within one of the three acceptable categories, your account will be fully restored within 2 business days.

The rules for implementing an appropriateness test are determined by FCA Handbook’s COBS 4.12A.27 and following, and FCA’s Policy Statement PS23/6. The form and content of our appropriateness tests have been designed based on these rules.

If you have failed an appropriateness test, it means that you did not reach a minimum score. In accordance with the above-mentioned regulations and our internal policy, a minimum success rate is required to consider if an investor has enough experience and knowledge to invest in a certain product/service.

Shall you consider that you failed a test because a question was not clear enough or too ambiguous, you are able to retake the test and a new set of questions will be proposed.

As part of the UK’s new rules, this delay ensures investors don't make rushed decisions under the pressure of time. We'll notify you when the 24-hour waiting period is over or if other trading restrictions are lifted.

You're informed about associated risks, but be aware that protection is limited. The Financial Services Compensation Scheme (FSCS) does not cover crypto asset investments. Similarly, the Financial Ombudsman Service (FOS) won't consider complaints related to losses caused by investing in crypto assets. Please, use the FSCS investment protection checker for more information.