The second area of concern was asset allocation, specifically when the recommended split of assets and sectors was discussed with the client. Many entrants did not consider analysing the client’s existing portfolio to see if it met their objectives, or if it met their attitude to risk. When solutions were recommended, some entrants had one preset portfolio for a low-risk client, but did not show how the recommended assets matched either the client’s attitude to risk or helped to meet their objectives.
An appreciation of the differing investment timescales of individual objectives was not evident in some entries, with some clients getting the same recommendation whether they were investing for four years or for 28 years.
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