In the Detailed Compliance Report screen, the mPASS tab contains the results of the mPASS Client Categorisation and Suitability & Appropriateness questionnaire. It can be found here in the Report screen. Click on the name of the tab to open the page.
The results shown on this screen are derived from the answers given during the assessment being compared against the scores set up in your Environment.
For each product and related service, the system evaluates the following information in order to calculate the result:
- The Instrument your potential client is seeking to transact with the firm. This will be tested in both the client’s own home jurisdiction and any jurisdiction into which the client is seeking to trade.
- The Service that client is seeking in relation to the specific financial instrument.
- The Categorisation triggered by the engine based on the relevant legislative provisions and the client’s responses during the assessment stage
There are two further considerations triggered based on specific services being sought:
- Appropriateness Assessment: if the client is trading directly with the firm receiving “execution only” services, the appropriateness assessment is triggered (subject to the categorisation of the client and complexity of the financial product). Its aim is to assess whether the financial services and products offered to the client are appropriate for them.
- Suitability Assessment: if the client is seeking for portfolio management/advisory services from the firm, the suitability assessment will trigger (subject to the categorisation of the client and complexity of the financial product) to assess whether the said financial services and products are suitable to them. The Platform automatically triggers the financial situation, investment objectives, as well as the knowledge and experience assessments, in order to test the client on the above.