Risk profiling 'grey areas' will remain despite FSA clampdown

Unveiled earlier this month, the regulator's guidance paper has been largely welcomed by the industry as a useful "pointer" highlighting the shortcomings of risk-profiling tools and techniques. However, questions remain over whether an assessment process essentially subjective and personal in nature should be subject to regulatory rules. Some firms have also called on the regulator to "name and shame" risk-profiling tools which do not come up to scratch. The paper - part of a wider crack-down on "unacceptable" levels of failures in firms' investment strategies - warned over-relianc...