DISC 5.7 Presenting the finalised risk and return score

The risk and return score for the consumer composite investment must be presented clearly and prominently in the product summary on a horizontal linear scale of 1 to 10, in the manner shown:

The manufacturer should consider supplementing the presentation in the product summary of the linear scale in DISC 5.7.1R with a concise explanation of how the risk and return score was calculated and a narrative explanation of the limitations of the approach, including a statement or explanation to the effect that:

1. (1) historical data, such as is used in calculating the risk and return score, may not be a reliable indication of the future risk profile;
2. (2) the risk and return score shown is not guaranteed to remain unchanged and the categorisation may shift over time; and
3. (3) where relevant, a risk and return score of 1 may still involve a degree of risk to the original amount invested or to the returns the investor may receive.