Risk profiling: Advisers question tools' 'spurious' accuracy claims

Claims that a new risk profiler is more accurate than standard versions because it includes extra questions have re-ignited a debate about the precision of attitude-to-risk (ATR) tools. Adviser network Personal Touch Financial Services said a ‘reliability analysis’ of its 15-question Risk Profiler – provided by Oxford Risk - found it correctly places clients in one of ten linear bands 90% of the time. This improved on the 86% accuracy of Oxford Risk’s standard ten-question version, it said. But wealth managers and advisers said risk profilers should form no more than a “starting po...