I am aware of that. My argument is, they allowed this fund to be bought by us initially, but have now stated we need testing and unable to keep buying if we don’t meet the requirements. Should have been from the outset, not an afterthought.
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It was a miss on Freetrade’s part by allowing these investments to be bought prior to the test in the first place but now they are trying to rectify this, to ensure compliance.
FYI, three of my investments are affected and I’ll just take the test when I top up.
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I just did the test and passed it as I understood the questions they asked about leverage and the possibility of being stuck with illiquid assets.
At the risk of asking a stupid question here though, I don’t understand the reason for TRIG being complex. I don’t see mention of leverage so is it because of low liquidity?
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I think it’s mainly down to this statement in their KID
Intended Retail Investor: UK based asset and wealth managers, other institutional or sophisticated investors and private individuals. An investment in the Company is suitable only for investors who are capable of evaluating the risks and merits of such investment, who understand the potential risk of capital loss and that there may be limited liquidity in the underlying investments of the Company, for whom an investment in the ordinary shares constitutes part of a diversified investment portfolio, who fully understand and are willing to assume the risks involved in investing in the Company and who have sufficient resources to bear any loss (which may be equal to the amount invested) which might result from such investment.
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The test had 7 questions. Does anybody know how many we have to get right for a pass? I failed. Very annoyed because I held think for ages.
Since I started investing with FT, my positions have had to be sold in the end. I had to sell my MLPs when 70% of my portfolio was MLP. I sold the rest of my US stocks when they removed most US REITs from the Basic list. I sold POLY and EVRAZ when Russian affected companies were frozen. My plans for a yearly 10k dividend were scuppered. Another one bites the dust with TRIG. What’s next?
Instead I withdraw my money, and my pension plans have moved into property.
I have a few grand left in FT, which is likely to get used for something else outside of FT now that another of my investment plans (TRIG) has gone tits-up. Again.
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You could try a learning app like Investmate. I used it when I first started investing over a year ago and still remembered enough to pass the FT test when it arrived.
Maybe FT could write their own learning app?
Edit: you may find that other providers will require a similar test, which is why Investmate and other learning apps exists, so moving may not be the answer that you hope for.
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It’s a good idea, but I shan’t do it. Learning won’t beat every changing financial legislation. The rules change too often. I feel too old these days.
I will carry on with buying and letting out property, and get out of trading. I have gradually divested from all trading , including FT, since we lost access to MLPs.
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I know that feeling!
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