View more on these topics

Tillinghast urges FSA to take risk/ reward approach

Tillinghast is lobbying the FSA to introduce projections that better illustrate the risk/reward profile of different asset mixes to consumers.

The firm, part of the Towers Perrin group, is calling for greater use of stochastic modelling to project the relationship between the risk and reward associated with different asset mixes and investment strategies across a range of products.

By consulting on how best to take projections forward, the FSA has accepted its current method is something of a one size fits all approach.

Tillinghast principal Bruce Moss says to secure more realistic and simpler projections for consumers the regulator should introduce stochastic modelling which can better take account of different products characteristics and the timeframes over which they are looking to invest. This approach is also well suited to lifestyling.

He argues the FSA’s current approach is better suited to projections that compare the effect of charges on returns and preventing investor confusion with investment returns and other product features.

Moss says: “Stochastic modelling techniques might sound sophisticated and inaccessible but the results of varying investment decisions can be illustrated very powerfully and so help investors develop a better understanding of the relationship between the risk and reward of different investment strategies and the actions they need to take in order to achieve their financial goals.”

Recommended

Hatching revenge

Julian Polhill, chairman of financial PR consultancy Polhill, is plotting revenge. After hearing that PR Louise Hatch had quit Penrose, the Polhill girls emailed him saying that Hatch wanted him to call her and left him a number of one of the Polhill girls. Excited about the pros-pect of Hatch begging him for a job, […]

Financial firms are failing on fairness

Financial services companies are failing to meet the FSA’s requirements for Treating Customers Fairly according to the latest research from consultancy PricewaterhouseCoopers.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com