PA360 North: Advisers 'doing an excellent job' against client cautions

Reasonably foreseeable harm and battling behavioural biases

Hope William-Smith
clock • 1 min read

Advisers “do an excellent job” encouraging long-term commitment from clients given it goes against their natural behavioural instincts, according to Legal & General Investment Management (LGIM).

Speaking at PA360 North yesterday (4 October), head of multi-asset funds John Roe revealed the findings of an LGIM survey designed to establish patterns in behavioural bias and the effect on decision-making. In the behavioural bias survey, people were asked questions such as whether would they rather win £10m than lose £9m or just win £1m. Overwhelmingly, Roe noted savers would prefer to have won £1m due to a natural risk-aversion when faced with a decision. The same logic applied when people were asked whether they would take the option of flipping a coin in a scenario where one s...

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

Hitting milestones later in life could impact when people seek advice

Hitting milestones later in life could impact when people seek advice

People will likely be seeking financial advice later

Laura Suter
clock 19 April 2024 • 3 min read
Regulatory pressures taking a toll on industry stress levels

Regulatory pressures taking a toll on industry stress levels

'Regulatory pressures are the first thing on my mind’

Sahar Nazir
clock 19 April 2024 • 1 min read
Advisers blast FCA funding requirement of £755m 'inexorable'

Advisers blast FCA funding requirement of £755m 'inexorable'

‘I don’t really know what value I’m getting from the FCA – if any’

Hope Coumbe
clock 19 April 2024 • 2 min read