Which consumer composite investments are assigned a pre-determined risk and return score of 9 or higher?
A consumer composite investment is assigned a pre-determined risk and return score of at least 9 where it is a CFD, a contingent convertible security (CoCo bond), a derivative, a security issued by a venture capital trust, or an investment in an Enterprise Investment Scheme (EIS). A score of at least 9 also applies where the CCI has a volatility track record of less than five years, reflecting its classification as very high risk due to insufficient historical data. In addition, a pre-determined score of at least 9 applies where the investment strategy involves significant leverage, where the retail investor could lose more than the amount invested, or where the pricing frequency is less than monthly.