Section 19(b) in Pension Fund Regulatory and Development Authority (Retirement Adviser) Regulations, 2016
(b)it follows a process for assessing the risk, a prospect or subscriber is willing and able to take, including:(i)assessing a prospect's capacity for absorbing loss;(ii)identifying whether prospect is in a position to understand the concept of market risk involved in the process of investment;(iii)appropriately interpreting prospect's responses to questions and not attributing inappropriate weight to certain answers.;(iv)is able to understand and appreciate that retirement plans involve long gestation period, and early liquidation or exit, from the scheme is not beneficial.
