In January 2025, Debitum Investments replaced its former Investor Knowledge Questionnaire with a new format: the Suitability and Appropriateness Questionnaire. The platform’s objective is to understand which types of investments are suitable for registered investors in order to provide tailored recommendations.
In this article, we will attempt to understand why investors must complete this questionnaire, what is evaluated through the questions, the benefits investors can derive from it, the consequences to expect from the answers they provide, and finally, address its practical operation.
Why this questionnaire?
This Suitability and Appropriateness Questionnaire follows the license extension by the regulator, the Bank of Latvia, which allows Debitum to offer portfolio management services. The platform can thus evaluate investors’ knowledge and experience in financial investments, as well as their preferences and risk tolerance.
Based on the responses received through the questionnaire, Debitum Investments is required to adapt the level of protection to the investor’s level of knowledge and experience, thereby complying with European regulatory requirements.
To be precise, this refers to the Markets in Financial Instruments Directive (MiFID) adopted by the European Parliament, which establishes three fundamental principles: acting honestly and professionally in the best interest of the client, providing appropriate and clear information, and offering services tailored to individual circumstances.
Benefits for investors
Whether you are a new investor at Debitum Investments or you joined the platform before 2025, everyone must complete the Suitability and Appropriateness Questionnaire. After completing it, investors have access to all features (although personally I haven’t really seen a difference between before and after the questionnaire).
From the European legislator’s perspective, the objective is to protect investors’ interests by ensuring the platform’s compliance with regulatory requirements, and by providing clear and comprehensive information about the products and services offered.
The questionnaire should enable Debitum to personalize investors’ experience by offering them suitable opportunities and personalized services according to their profile. In practice, this primarily involves setting a limit on the total amount an investor can invest.
The 4 areas evaluated
Investor status : This involves defining each investor’s objectives: capital protection, income generation, asset growth and/or return maximization. The platform therefore seeks to define their risk appetite and identify their time horizon in order to implement appropriate protective measures.
Investment knowledge and experience : The platform evaluates investors’ understanding of financial instruments and their investment experience. Each investor is asked about their level and field of study, their professional situation, their experience with different types of financial products, as well as the nature, volume and frequency of past transactions.
Financial situation and risk tolerance : The objective is to understand the sources and amounts of regular income, assets, real estate, debts and other financial commitments of the investor. The platform also seeks to determine their overall risk tolerance, particularly in case of financial fluctuations in their assets.
Investment preferences : This involves identifying the investor’s preferred investment approaches as well as their portfolio management needs, particularly in terms of investment volumes planned for the future.
Consequences of the responses provided
Based on the responses provided by each investor, Debitum Investments categorizes them as a retail client or professional client. Additionally, the platform adapts their investment experience with investment options aligned with their profile.
Based on the responses provided, platforms can adapt their personalized portfolio management services, authorize or limit access to certain features, and set investment limits.
Furthermore, providing limited or insufficient information may affect the nature of the service provided by Debitum Investments. The crowdlending platform may limit access to certain investment opportunities or cap investment amounts.
How the questionnaire works
To access the questionnaire, simply click on the banner at the top of the platform indicating that this is an outstanding formality. Alternatively, simply click on your investor profile where you can access the questionnaire. It takes approximately 10 minutes to complete.
The questionnaire consists of approximately thirty questions, divided into 5 categories: education and professional situation, financial situation, experience, knowledge (the longest section which includes a multiple-choice quiz), and finally investment preferences.
Also note that the questionnaire is currently only available in English and Latvian. Finally, each investor must confirm their wish to become a client of SIA DN Operator (the official name of Debitum Investments) and attest to the accuracy of the information provided.
Should you complete the Debitum questionnaire?
The Suitability and Appropriateness Questionnaire represents the platform’s commitment to European regulatory authorities to protect investors. As such, the platform can offer investment opportunities that match investors’ profiles, preferences and financial situations.
In practice, completing the questionnaire is advisable as it prevents investors from being limited by investment caps that are too low, both on a monthly basis and overall. If needed, they can review their responses at any time, knowing that the questionnaire is also updated periodically to maintain its effectiveness.
