The bosses of FinaMetrica and rival risk profile firms have been telling Financial Planning Today magazine why Financial Planners should choose their tool.
Oxford Risk, Dynamic Planner and Evalue have also explained what they say are the main advantages they can offer planners.
They were speaking to Financial Planning Today magazine for issue 4, out now. Read article in full here.
Paul Resnik, co-founder and director of FinaMetrica and former Financial Planning business owner, said: “We are scientific. The one million plus risk tests completed since 1998 show that risk tolerance is a stable personality trait that tends not to be impacted by age, education or market movements.
“We offer a scalable service meaning there's the same proven financial planning process whether it's applied to the complexity of a family office or the simplicity of robo advice. We are independent and international with no home country bias. Everyone gets the same test centrally scored by the same algorithm.”
FinaMetrica background:
In 1994 Paul Resnik and Geoff Davey started research on improving investment persistency.
Mr Resnik said: “We saw there was a high level of portfolio churn that damaged the profitability of both fund managers and advisers.
“We thought that dissatisfaction could be lowered if there was a better matching of investments to investors needs and expectations.
“Geoff had built and sold a large Financial Planning business. I had founded several business across the financial services supply chain. We launched FinaMetrica in 1998.”
Dynamic Planner CEO Ben Goss said: “Our questionnaire requires no knowledge of finance, statistics or percentages to complete. It does not assume a particular level of wealth or income.
"We give the advisor full control over the final risk score, allowing them to separately record the psychometric risk score but to take account of all relevant factors when selecting the risk.
"We offer capacity and experience questionnaires to help the advise7r assess and document the risk their clients are able to take.”
Dynamic Planner background:
Dynamic Planner was founded in 2003 by its CEO Ben Goss, and has since grown to become a leading provider of Financial Planning and practice management technology for wealth advisers in the UK. Dynamic Planner is used by over 6400 advisers to ensure investment suitability and is the most widely used investment risk profiling process in the industry with over £136bn of assets from more than 100 managers either run with reference to Dynamic Planner’s Asset Model or profiled against its risk profiles.
Evalue founder Bruce Moss said: “EValue offers advisers considerable flexibility by providing a choice of questionnaire to suit their needs i.e. number of questions and risk profiles and investment risk vs. income risk.
"EValue has a scientific process for mapping its risk profiles to asset allocation benchmarks using its economic scenario generator “insight”.
“Income risk is fundamentally different from investment risk and EValue research has identified that consumers are much more cautious when it comes to risking their income - a vitally important fact when advising a consumer drawing down income in retirement.”
EValue background:
The origins of EValue date back to 1993. Until February 2011 EValue was part of what is now Willis Towers Watson since which time it has traded as an independent company - more than tripling in size. Around 90% of the UK’s banks and product providers and over 10,000 advisers use its products.
Andre Correia, business development director at Oxford Risk, said: “The Oxford Risk Rating is able to deliver this insight about investors with the academic excellence from the University of Oxford. Oxford Risk provides insight into investor behaviours and preferences, a key component that until recently was not consistently explored by the financial services sector.
“Whilst there has always been significant complexity in delivering risk, and comparing between varied investment alternatives, there has been less discrimination when it comes to understanding investors and being able to link their preferences to suitable investment choices.”
Oxford Risk background:
Oxford Risk is a spinout company of the University of Oxford, which retains a significant shareholding. Oxford Risk was founded by three prominent academics; Professor Lord John Krebs, Professor Alex Kacelnik and Dr. Edward Mitchell. They have published hundreds of scientific research papers in behavioural ecology, behavioural economics, risk psychology and decision-making. Oxford Risk has considerable access to the resources and skills in the University and the world’s finest academics.
- The fourth issue of Financial Planning Today, our new 40-page magazine for Financial Planners and Paraplanners, is now live online.
Click on front page below to go to the magazine and read it online.
The magazine is available first to our email newsletter subscribers.
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The new publication features exclusive content including contributions from leading figures in the worlds of Financial Planning and Paraplanning plus features and insights produced by experienced financial journalists in London.
Financial Planning Today's latest issue highlights include:
• A Special Report on the trouble Financial Planning firms have been having finding Paraplanners
• An exclusive feature on Risk Profiling Tools, with expert insight from ex-FCA tecnhical specialist Rory Percival
• Columns from high profile planner Julie Lord, PFS chief executive Keith Richards, CISI head of Financial Planning Campbell Edgar and Paraplanner John Redmond
• Analysis of the 2017 investment prospects post the shock Trump US Presidential victory
• New Investment and DFM section with 180+ DFM providers listed plus DFM updates
• Plus, The Client Hunter, Planner Casebook, Inside My Business with LEBC chief Jack McVitie, Financial Planning and Paraplanning news and much more
Feedback on the new magazine has been excellent with well 3,000 people reading the first three issues and the number rising steadily.
Financial Planning Today Publisher and Editor Kevin O’Donnell said: “We're delighted to make available issue 4 to subscribers and we hope the content will be invaluable to professionals. There is lots of insight, news and comment plus many busness tips and ideas to help Financial Planners do an even better job and build on their professionalism.
"We have designed Financial Planning Today magazine to be an essential publication for all professional Financial Planners, Paraplanners and Wealth Managers and we'll be announcing some exciting developments for 2017 soon."
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