The risk analysis system uses a combination of psychometric and fact-find questions to accurately assess a client’s attitudes to risk, then allocates different risk levels across the portfolio.
The flex capability, which accommodates any one-off special or exceptional investment needs, requires advisers to input a written explanation of the reason for the varied risk. That data is then reproduced in the automated suitability report outlining any risk variation and regulatory requirements.
2plan Wealth Management chief executive officer Chris Smallwood says: “Prior to developing this solution, advisers using most industry back office systems have been forced to allocate just one risk profile per client, regardless of the fact that some clients are keen to give different levels of risk for certain investments when they have specific objectives in mind.
“Like much of our technology, the flex capability was developed in response to our advisers needs, but ultimately it provides their clients with the biggest benefits and that’s what really counts.”