Platform servicing provider FNZ has partnered with Suitable Strategies to offer a new digital financial suitability tool to advisers and their clients.
Much like the Pensions Advisory Service back in November, FNZ will offer the Bambooing on-line assessment system, stating that this takes retail clients on a “journey beyond the current attitude to risk-based approach”.
Bambooing will be accessible through FNZ-powered platforms, such as Axa Wealth and Standard Life.
The tool measures financial knowledge, investment engagement and risk aptitude of individuals against the backdrop of the entire UK population, providing a new measurement system to better understand their customer’s capability around investments.
Recent regulatory changes have increased pressure on the industry to demonstrate that all financial product sales, no matter the channel, are suitable for customers.
Firms, providers and advisers will be able to access Bambooing through FNZ’s web and mobile solutions, allowing them to assess their customer’s financial capability, understanding and engagement.
FTAdviser previously reported that the tool was being seen as potentially helping remove complaints risk from simplified advice.
Roger Portnoy, global head of strategy and innovation at FNZ, said: “It’s the first suitability tool we have seen that has taken the Financial Conduct Authority’s guidance on client knowledge, investment interest and risk awareness to heart.
“The service provides insight to assist the consumer in better understanding their financial and risk aptitude, while presenting retail wealth solution providers with dashboards that can properly explain, both absolutely and relatively the capability and engagement of their current and prospective customer.”
Michael Free, director at Suitable Strategies, added that by embracing accurate and full individual capability assessments, the industry can demonstrate that it is willing to better understand the consumer and only offer the products, services and advice that are right for them.
“There tends to be a view that suitability is about risk mitigation and regulation but when approached positively it also creates significant opportunities for new business.”
peter.walker@ft.com
