Read the latest insights on risk profiling, suitability, financial planning, portfolio planning and the advice industry at large from our internal experts.
‘Why?’ is a question that few financial advisors used to hear. Their role was to be an expert oracle, who presented a recommendation that was seldom, if ever, questioned — or explained. The advisor simply told the client what they should do, and the client did it. Those days are over. Today, people want to…
The Singapore regulator of private banks recently conducted a two-year review of compliance with its suitability rules, finding that there is significant room for improvement. Singapore’s private banks are expected to: Have controls and checks in place to prevent inappropriate advice and product sales Update clients’ risk-profiles and financial needs regularly Implement checks to identify…
FinaMetrica has been crowned ‘Best Risk Profiling Solution’ at the 7th WealthBriefing Swiss Awards 2020. Showcasing ‘best of breed’ providers in the global private banking, wealth management and trusted advisor communities, the awards were designed to recognise companies, teams and individuals which the prestigious panel of judges deemed to have ‘demonstrated innovation and excellence during…
Financial advisors spend a lot of time explaining risk to the clients. But often those explanations are not understood, because clients don’t understand how to understand and respond to probabilistic risks. Risk literacy is a serious issue for advisors, as the client’s ability to properly consent to a financial plan hinges on their ability to…
Behavioural economics has revealed many ways that investors — and investment advisors — can make mistakes or be fooled by things that are not what they seem. These are just five of a long list of biases and errors that can undermine our best intent. These behaviours are summarised from the work of Nobel Prize winning…
Low investment returns pose significant risks for investors, and their advisors. Their returns may not be sufficient to achieve their financial goals. But if they then go ‘chasing yield’ they can fall down the mineshaft of illiquid assets and become trapped. Hundreds of thousands of investors in the United Kingdom are living that pain right…
Suitability standards continue to spread around the world, with Canada enacting its ‘Client focused reforms’ in October. The new Canadian rules codify how know-your-client, know-your-product and suitability determinations should be applied. Meanwhile, in the United Kingdom new executive accountability rules are giving sharp teeth to any bite from the regulator as it enforces the MiFid…
A skilled advisor can learn a lot about a client’s risk experiences and attitudes in a conversation. But it may only be half of the story they need to know. There is other critical information that won’t come to the surface that way — to drill-down to it, you need to use scientifically rigorous testing.…
With George Hartman George Hartman is a five-time best-selling author of practice management books, popular columnist and a global speaker on issues for financial advisors. He has been a long-time Board member of PlanPlus Global Inc. and joins Shawn Brayman today to explore what the new SuitabilityPro™ suite of software means for FinaMetrica users, PlanPlus…
Dealing with a client with diminished financial capacity is an inevitability for most financial advisors. But it’s sometimes done in an unstructured or ‘seat-of-the-pants’ way, which can leave both advisor and client exposed to risks. One of the best protections, for both sides, is the client’s stated goals, values and financial plan. These provide a…
