Proposal for Developing a Python GUI Application for CAR and CKA Assessment

1. Introduction

In the financial industry, ensuring that investors fully understand the risks associated with investment products is paramount. In Singapore, this is achieved through the Customer Account Review (CAR) and Customer Knowledge Assessment (CKA) processes. These assessments are mandatory for investors wishing to purchase certain financial products, particularly complex ones. This proposal outlines the plan to develop a Python-based GUI application to conduct CAR and CKA assessments, evaluate user responses, and determine their eligibility to purchase specific financial products.

2. Purpose of CAR and CKA

• Customer Account Review (CAR):
  CAR is an evaluation process used by financial institutions to assess an investor's ability to purchase non-complex financial products, such as unit trusts or government bonds. The assessment involves a series of questions that gauge the investor’s financial experience, investment knowledge, and risk tolerance. The purpose is to ensure that the investor is capable of understanding the risks involved with these non-complex products.

• Customer Knowledge Assessment (CKA):
  CKA, on the other hand, is designed for investors who wish to purchase complex financial products, including structured products, derivatives, and leveraged ETFs. These products carry higher risks and require a deeper understanding of financial markets. The CKA evaluates whether the investor possesses adequate knowledge through relevant education, work experience, or prior investment in similar products.

3. Objective of the Project

The objective of this project is to create a user-friendly GUI application using Python that allows financial institutions to conduct CAR and CKA assessments electronically. The application will:

1. Present the CAR and CKA questionnaires to the user.
2. Collect and analyze user responses.
3. Provide an evaluation based on the user's responses, indicating whether they are eligible to invest in the intended financial products.
4. Offer a recommendation or disclaimer if the user fails to pass the assessments, ensuring they are aware of the potential risks.

4. Project Scope

• GUI Development:

  • Design an intuitive and accessible graphical user interface.
  • Include features such as real-time validation of inputs and informative tooltips.

• CAR and CKA Questionnaires:

  • Develop dynamic questionnaires for both CAR and CKA assessments.
  • Implement logic to adapt questions based on previous answers (e.g., skipping irrelevant sections if certain criteria are met).

• Evaluation Logic:

  • Implement algorithms to analyze responses and generate a pass/fail outcome.
  • Include functionality to provide customized feedback based on the user’s results.

5. Technological Stack

• Programming Language: Python
• GUI Framework: Tkinter or PyQt

6. Expected Outcomes

By the end of this project, we expect to deliver a fully functional Python-based GUI application that financial institutions can use to conduct CAR and CKA assessments effectively. The application will not only streamline the assessment process but also enhance user experience and ensure compliance with regulatory requirements.