FinaMetrica has launched an integrated risk profiling tool, which features a scaled down 12-question risk tolerance test that it said was suited to clients with smaller investment pots or “single-goal” investment objectives.
FinaMetrica Plus will operate alongside the company’s long-established 25-question test, which it said remains more suitable for financial planners providing a comprehensive multi-goal planning service.
Paul Resnik co-founder of FinaMetrica, said the new stripped down test would also offer an ‘enterprise’ solution to larger businesses such as banks and pension funds, which would allow them to ensure consistent risk testing across bespoke services and new, web-based automated advice alternatives.
The risk profiling tool has been taken up by Threesixty Services after “extensive” market research.
Phil Young, managing director, commented: “Understanding a client’s view of their tolerance to risk and being able to map it against asset allocation, expected portfolio return and volatility assumptions, is a crucial part of the financial planning discussion process and can help ensure the client is fully engaged from the start.”
FinaMetrica has also built its asset allocation mappings functionality into the new tool, allowing advisers to interactively compare their client’s risk tolerance with the risk in both their current and target portfolios.