What the questionnaire establishes
Your investment objectives, time horizon, financial knowledge, financial situation, financial capacity to absorb a loss, and psychological risk tolerance. These are distinct elements and should not be conflated.
Capacity and tolerance are not the same
Capacity to absorb a loss is objective: it depends on your assets, income, and commitments. Tolerance is subjective: it describes how you react to a decline. An investor can have high capacity and low tolerance.
The suitability obligation
A registered person must ensure a recommendation suits your situation as documented, before making it. The profile is the document that enables that assessment, and the record that allows it to be verified afterwards.
Why an accommodating answer hurts
Declaring yourself more risk-tolerant than you are in order to access a given product removes the protection the suitability obligation gives you. The document you signed is the one that will be examined in a dispute.
The profile gets updated
A birth, a separation, an inheritance, a job change, approaching retirement, or a shortening horizon all change the profile. The registered person must review it periodically; you can also ask for a review.
What the profile does not do
It guarantees no return and predicts no market. It aligns portfolio risk with a person’s circumstances. CompareTaux displays no return and makes no recommendation: we connect you with a registered person.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.