ABLRATE’S appropriateness test has been described as ‘trickier’ than others but the majority who have taken it in the first days of the new regulations have passed, the platform has revealed.
The asset-backed lender said more than 1,000 people have taken the test and while most have passed, some have narrowly failed.
Users have often failed because they have not given enough correct responses to a single question rather than getting answers wrong, Ablrate said.
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“This may be because a number of peer-to-peer lending platforms have chosen to ask questions with one correct response rather than ask questions that have two or three,” the platform said in a blog post.
“Feedback has been good, the test has been described as ‘trickier’ than other platforms, we are comfortable with at as we have embraced the rules and education has to be at the forefront now.”
Of those that have passed, around 50 per cent classified themselves as a self-certified sophisticated investors, 20 per cent classified as high-net-worth, 20 per cent as restricted and 10 per cent as certified sophisticated.
New Ablrate investors need to achieve an 80 per cent pass rate on the test and will be given the opportunity to review those questions where incorrect statements were chosen.
If they fail the test three times they will be automatically locked out for seven days, but Ablrate said users can contact its customer service department to get the account unlocked earlier.