THE MAJORITY of Ablrate investors have passed its appropriateness test but 10 per cent have failed, the platform has revealed.
The asset-backed lender revealed five per cent of users taking the test have failed while another five per cent are in review, known as a borderline fail.
“The borderline fail has been mostly down to the fact that we have two or three correct responses per question where other platforms may only have one per questions,” David Bradley-Ward (pictured), chief executive of Ablrate, said.
Read more: P2P lending approaching “watershed moment”
Ablrate investors need to achieve an 80 per cent pass rate on its appropriateness test and will be given the opportunity to review incorrect answers.
If they fail the test three times they will be automatically locked out for seven days, but Ablrate said that investors can contact its customer service department to get the account unlocked earlier.
The platform said in the first weeks of the launch of the test in December that it has been described as ‘trickier’ than others.
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.