An adviser has urged caution over the use of life company risk tools to design client portfolios after concerns surfaced about Zurich's Risk Profiler.
Claire Markham, investment director of Lincolnshire-based F H Manning Financial Services, found a significant anomaly in the results generated by the tool for a particularly risk-averse client. Markham asked a client to complete the seven-question assessment as a basis for discussing risk. The customer answered 'not sure' to six questions on the survey but in answer to a question about their reaction to a decrease in value of the portfolio by 25% over a year they answered: " Horror, security of my capital is critical and I do not intend to take risks." After inputting the results into t...
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