- FE’s whole of market data uniquely allows advisers to map any investment solution to a clients’ risk profile
FE, a leading investment ratings and research agency, today announced the launch of FE Analytics+ Investment Planner, a step by step investment process to help advisers meet suitability requirements and deliver consistent investment advice.
FE Analytics+ Investment Planner is designed to help advisers assess a clients’ attitude to risk, discuss and select suitable investment options and summarise the investment advice process in client friendly reports. It is also fully customisable to advisers’ business models and preferred investment solutions.
Matthew Surfleet, commercial director at FE said: “Establishing suitability, including discussing the risk a customer is willing and able to take and mapping appropriate investment solutions, is critical for all financial advisers. However, the processes employed to achieve this are often manual, inefficient and can vary, even within the same firm.
“FE Analytics+ Investment Planner has the potential to become the industry standard for delivering consistent advice in one streamlined process. Uniquely, advisers will have the freedom to map any investment solution to the most suitable risk profile. This is because the already widely-used FE Risk Score will be used as a measure of the relative riskiness of a portfolio and this is applied to the whole of the market - no provider pays to be rated.”
A survey of advisers by FE last year revealed that nearly 60 per cent do not use technology in support of their centralised investment processes – although almost all highlighted the need for a one-stop solution that helps with researching, selecting and investing clients’ money.
Surfleet continued: “As FE Analytics is already used by 84% of the UK’s top 100 advisers[1] for investment research and reporting, it made sense to evolve the technology to provide the one-stop, independent investment process advisers were calling for.”
The FE Analytics+ Investment Planner process explained (for more details see notes to editors):
- Assessing clients’ attitude to risk - powered by EValue, the Attitude to risk questionnaire is designed to establish the level of risk each client is willing to take. It provides additional support in helping advisers understand a client’s capacity for loss and compare different outcomes, to confirm the suitability of the chosen risk profile.
- Investment solutions for each risk profile - the new FE Risk Score Risk Bandings help to map any investment solution to the most suitable risk profile. The FE Risk Score is an independent measurement of risk, applied to the whole of the market as no provider pays to be rated. Advisers can programme their preferred investment options into the tool against each risk profile for everyone in the firm to view, compare and select.
- Client friendly reporting - the final step in the Investment Planner process is a report centre, that allows advisers to summarise every part of the process that has led to the recommendation. From ‘possibility of losses’ reports, that review the inherent risk of each risk grade, to ‘switch reports’ that compare the existing portfolio to the recommended portfolio, there are plenty of options to build a robust recommendation report in minutes. All reports are saved against each client and can be retrieved quickly for future review.
- Fully customisable – the tool can be tailored to match advisers’ own investment propositions.
Adam Herbert, Managing Director, Herbert & Webster who has already begun using FE Analytics+ Investment Planner commented: “The investment planner has given us the solution we have been waiting for, for a long time. It brings all steps and processes together from the attitude to risk questionnaire, capacity for loss, the asset allocation, risk banding to the investment solution. It allows us to service all clients with all suitable investment solutions within a single software solution.”
In a recent review of risk profiling tools[2], ex FCA regulator Rory Percival recommends that advisers ensure they are comfortable with the mapping of investment solutions to the client risk categories, reminding them that responsibility for the suitability of advice remains theirs.
Matt Surfleet commented: “Ultimately, only the adviser can determine the right investment solution for their client. However, by using the FE Risk Scores held within FE Analytics - our new ‘Risk Score Bandings’ - advisers can use a consistent measure that will ultimately drive efficiency and provide peace of mind.”
-ENDS-
NOTES TO EDITORS
How does FE Analytics+ Investment Planner work?
- Assessing clients’ attitude to risk
Powered by EValue, the Attitude to risk questionnaire contained within the Analytics+ Investment Planner tool is a psychometric risk questionnaire, designed to establish the level of risk each client is willing to take. The tool provides additional support in helping advisers understand a client’s capacity for loss and compare different outcomes, to confirm the suitability of the chosen risk profile. The questionnaire can be emailed to clients via the tool or completed together in a face to face meeting.
- Investment solutions for each risk profile
Using the FE Risk Scores held within FE Analytics, our new FE Risk Score Risk Bandings, can help advisers map any investment solution to the most suitable risk profile. The FE Risk Score is an independent measurement of risk (volatility), applied to the whole of the market and free from any commercial bias, as no provider pays to be rated.
Advisers can programme their preferred investment options into the tool against each risk profile for everyone in their firm to view, compare and select.
- Client friendly reporting
Ensuring clients understand the reasons and process behind investment recommendations is crucial. The final step in the Investment Planner process is a report centre, that allows advisers to build a report, to summarise every part of the process that has led to the recommendation. From ‘possibility of losses’ reports, that review the inherent risk of each risk grade, to ‘switch reports’ that compare the existing portfolio to the recommended portfolio, there are plenty of options to build a robust recommendation report in minutes. All reports are saved against each client and can be retrieved quickly for future review.
- FE Invest Model Portfolios
The FE Invest model portfolios are automatically mapped to each risk profile and the additional reports we provide as part of the FE Invest service, are made available in the report centre, so that they can be added to any final recommendation. Using both Analytics+ Investment Planner alongside our FE Invest models, provides an adviser firm with a truly end to end investment solution, built within the award-winning research hub of FE Analytics.
- Fully customisable
The key to Analytics+ Investment Planner is that it can be tailored to suit the needs of each firm. An administrator login allows a designated resource within your company to customise the tool to match the investment proposition.
About FE
www.financialexpress.net
FE is a leading provider of data, software and performance analytics to the financial services industry. FE’s products and services are designed to interpret and analyse data, helping financial advisers and investors stay well informed and ultimately make sound investment decisions. FE also provides tools and software for fund managers and other financial services firms, including products to assist with fund reporting and analysis as well as fund marketing and presentation materials. FE has offices in the UK, Europe and across Asia Pacific. Its clients include life and pension providers, asset managers, financial advisers and networks, wrap platforms, fund supermarkets, software houses, and financial portals.
[1] Matrix Solutions and FT Adviser, 2016
[2] Rory Percival – ‘An ex-regulator’s guide to… Risk Profiling Tools