Wealth managers find suitability tests 'unsuitable'

Tests too subjective, Oxford Risk study shows

Julia Bahr
clock • 2 min read

Wealth managers said their suitability systems and processes for assessing client portfolios were not suitable for the task, a study from behavioural finance experts Oxford Risk has shown.

Independent research company PureProfile interviewed 150 wealth managers in the UK, France, Italy, Spain, and Ireland, who collectively manage assets of around €327bnn, during September 2022. The study found that nearly two out of three (65%) agreed that current systems were too reliant on subjective human judgement. Just one in 20 (5%) of wealth managers questioned in the UK, France, Italy, Spain, and Ireland, disagreed there was too much subjectivity, while 30% were neutral on this issue. Advisers that were questioned criticised existing suitability processes and systems for bein...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

The importance of advisers' digital presence in financial services

The importance of advisers' digital presence in financial services

'Inconsistency can be just as damaging as invisibility'

Setul Mehta
clock 12 February 2025 • 3 min read
MPs warn £5.5bn tax evasion cost could be 'vastly underestimated'

MPs warn £5.5bn tax evasion cost could be 'vastly underestimated'

HMRC ‘does not have a clear objective or strategy to tackle the issue’, committee finds

Jen Frost
clock 12 February 2025 • 3 min read
AJ Bell adds MPS range to Mabel Insights platform

AJ Bell adds MPS range to Mabel Insights platform

AJ Bell: ‘The Mabel Insights platform provides advisers with a wealth of information’

Sahar Nazir
clock 11 February 2025 • 1 min read