Architas to offer mapping of funds to FinaMetrica
Multi-manager to use risk profiling scale on fund range.
Multi-manager Architas is to offer advisers the option of mapping its funds to the FinaMetrica risk profiling scale.
The group said each of its ranges - MA Active, MA Passive and MA Blended - will map to FinaMetrica’s scale.
A growing number of fund groups are having their fund ranges risk rated - or assigned a numbered rating to reflect their risks - by companies such as FinaMetrica and Distribution Technology ahead of the RDR.
Advisers, under the increased regulatory burden of the RDR, have sought to give their clients a numbered risk rating and place them in funds with a corresponding profile to comply with new FSA rules on assessing products’ suitability.
Cedric Bucher, head of business development at Architas, said the group’s funds are already risk managed under the eValueFE risk profiling system, but this latest move is in response to the fact that advisers are using a range of risk profilers.
“The FinaMetrica mapping works for the full Architas range, the active, passive and blended proposition,” he said.
“This new service fits with our overall strategy; to ensure that we deliver RDR-ready solutions and facilitate a full investment process.”
However, many advisers say they still do not see risk ratings as the ultimate metric of a product’s suitability for their clients. Kevin Morgan, managing director at Consilium Financial Planning, said while it is useful to have fund ranges mapped to multiple risk-rating tools, he is not relying on them.
“While we don’t ignore these things as any information can be helpful, we have our own system of measuring a client’s risk and then we compare that with options put forward by fund providers,” he said.
“We are doing the research ourselves and are demonstrating that we are not just accepting the information put before us, which is something the FSA will be looking for.”
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