From the Editor: Too little too late for FSA risk tool probe?

Another year, another FSA paper. This time the regulator is once again raising concerns about risk-profiling tools.

Katrina Lloyd
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Another year, another FSA paper. This time the regulator is once again raising concerns about risk-profiling tools.

There are numerous risk-profiling tools out there that advisers can access as stand-alone aids, or through their wrap or platform. Many risk-rated portfolios, as well as being structured by the fund manager, are also linked to these tools to ensure managers, advisers and their clients are all singing from the same hymn sheet when it comes to risk. They appear to be a safer option if used properly and could be essential in providing the building blocks for advisers’ investment recommendations. However, although advisers have already been using these tools for thousands of clients for year...

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