As with most financial products, savers who intend to take out life insurance must first answer a vast questionnaire covering both their financial situation, their financial knowledge, their experience and their objectives. Imposed by regulations, the purpose of this is to enable the financial institution to get to know its client better, and therefore to offer him investment solutions that comply with his “profile”.
It is not advisable to respond in a fanciful way! The risk: seeing you offer investments that are incompatible with your situation and, above all, not being able, if necessary, to call into question the responsibility of the establishment if its proposals turn out to be unsuitable or inefficient. , knowing the mechanisms of the stock market and carrying out regular transactions on the stock market will not be able to complain of having been oriented towards equity funds or towards “complex structured” products, or even in “private equity” (unlisted equities).
On the other hand, if you answer sincerely, you will have recourse and will be able to rely on the answers given to the questionnaire to recognize the lack of adequacy between the recommended investments and your situation.
Critical practices
The Financial Markets Authority (AMF), which carries out regular checks on these questionnaires, noted, in 2018, good practices, and others that are more questionable. Among the good ones, she cites the fact of “Using differentiated questions according to the category of financial instruments”, “giving the client a questionnaire validating his knowledge of the proposed financial product”, to provide him “A document summarizing the operation and the risks associated with a complex or risky financial product”, to question him “On the number and average amount of transactions carried out, as well as on the composition of the portfolio and its breakdown by type of product”. But also of “Ensure that the durations of the investment horizons correspond to those of recommended detention for the financial instruments marketed”.
The AMF also welcomes institutions which, faced with a client refusing to disclose the amount of their assets in other institutions, warn them that the advice will be provided to them on the basis of the information available and that this advice may not be not be optimal.
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