More than half (54%) of advisers have not adapted their investment processes over the course of the last two years, despite continued regulatory scrutiny, research from FE has found.
Nine in 10 (91%) advisers told the data provider they now used an 'attitude to risk' questionnaire at the outset of discussions with clients about their risk appetite - up from three-quarters (76%) in the 2016 study. Just a quarter (25%), however, used a third-party risk-mapping tool designed to ensure the risk in portfolios matches the 'attitude to risk' assessment. FE suggested this might be because half of advisers (50%) believed third-party risk-mapping tools had limitations, describing them as ‘simplistic' and ‘too generic'. Of those using risk-mapping tools, around half (52%) ...
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