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FinaMetrica to launch ‘robo advice’ tool

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FinaMetrica is developing its risk profiling tool into a “robo advice package”.

FinaMetrica currently offers a risk profiling questionnaire for advisers in the UK.

It plans to launch a 19-question investor profiling tool, which includes a psychometric risk test as well as covering time horizon, capacity for loss, investment knowledge and experience.

The tool is aimed at investors with less than £100,000 and will link the user’s score to one of a range of of multi-asset portfolios.

FinaMetrica says it can be used directly by consumers or as a guidance tool for advisers. It says firms such as platforms may wish to offer it to their advisers.

The firm is in discussions with a number of businesses in the UK and plans to launch the tool in the coming months.

FinaMetrica director Paul Resnik says: “We have offered our risk profiling tool for 15 years and robo advice is a natural progression from that.

“We’ve been using the investor profiler with a Swiss bank for over seven years, so we know it works effectively as a guided advice support for bank advisers, and we are in the final testing stage of a direct-to-consumer profiler in South Africa.

“We understand that the FCA is encouraging the development of automated services to the mid-market but that there is some anxiety around Financial Ombudsman Service liabilities. We’ve looked at a number of FOS decisions and there is a pretty clear pattern showing that good process is the key defence – and we are confident our tool will stand up to that.”

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  1. This isn’t Robo advice, it’s simply automated risk profiling and investment management, so technically there is “advice”, but only in respect of what ATR to use and therefore what portfolio split.

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