Chaired by CISI head of Financial Planning, Jacqueline Lockie, the panel included Dan Atkinson APP Chartered MCSI, head of technical, EQ Investors and Joanna Hague CFP APP Chartered MCSI, Paraplanner, Investment for Life.
The panel covered differences in a Paraplanner's role between a large firm and a small firm and what larger firms can learn from smaller ones and vice versa.
Describing how her firm determines clients’ capacity for loss, Ms Hague said: “Capacity for loss is element of risk.
“The capacity for risk is what the client can withstand and how they feel about risk and also their investment experience.”
She said she uses Voyant fintech solutions to map out “what if the markets crashed and wiped out 50% of all your money”.
She also revealed she is contemplating recording the screen from client meetings.
Dan Atkinson said he also used Voyant and also had started using a “controversial” questionnaire, where he asks clients to determine their own capacity for loss.
On assumptions Mr Atkinson, who is a Financial Planning Today columnist, said: “Most of our assumptions we set on a firm level.”
He revealed that EQ Investors has an annual review in which “we record what do we think is going to be a reasonable assumption for inflation, what do we think is a reasonable assumption for the future?”
He said he tended to err on the side of caution in determining assumptions but added that being too cautious was potentially damaging.
“If we’re too cautious we’re basically robbing our clients of their lives,” he said.
He said clients would not want to be “the richest person in the graveyard.”