Home FCA Handbook DISC DISC 5 DISC 5.5 Products with a pre-set initial risk and return score
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DISC 5.5 Products with a pre-set initial risk and return score

06/04/2026R

The following consumer composite investments must be assigned an initial risk and return score of at least 9:

  1. (1) a contract for differences;
  2. (2) a contingent convertible security;
  3. (3) a derivative;
  4. (4) a security issued by a venture capital trust;
  5. (5) an investment in an Enterprise Investment Scheme;
  6. (6) a consumer composite investment with a volatility track record (within the meaning of DISC 5.2.1R and DISC 5.3.1R) shorter than 5 years;
  7. (7) any other consumer composite investment where any of the following factors apply:
    1. (a) the investment strategy involves the use of leverage to a degree where it significantly increases the investment risk;
    2. (b) the retail investor could lose more than they invest; or
    3. (c) the investment, or the underlying or reference assets, are priced less frequently than once a month.
06/04/2026R

If the consumer composite investment is a structured deposit, it must be assigned an initial risk and return score of 1.