Maintaining risk profiles in changing market conditions
The lack of advice tools to help create suitable options for clients in the de-cummulation phase is threatening to create problems and could "permanently destroy wealth", a consultancy has warned.
The Financial Conduct Authority (FCA) is concerned about the due diligence advisers perform on investment product providers and will continue to monitor the area, technical specialist for the regulator Rory Percival has said.
The regulator's clamp-down on financial crime will have an effect on advisory firms who are often seen as the gate-keepers to financial services, a consultancy has said.
A number of financial advisers have yet to grasp the difference between risk-rated and risk-targeted funds, a survey of 700 practitioners suggests.
Architas has mapped its funds on the Morningstar Adviser Workstation risk profiling-scale.