Fraser Donaldson: Two-dimensional risk assessment

Income in retirement

clock • 5 min read

When it comes to income in retirement, argues Fraser Donaldson, if the client's attitude to risk on income is not measured, as well on capital, an overall risk profile will be incomplete

We should all be familiar with the then FSA's final guidance paper from July 2012, Assessing suitability: Replacement business and centralised investment propositions (FG12/16). When recommending new or replacement business to a client, the principles to adopt are that recommendations should be in the best interests of the client and the client should be treated fairly. Areas of concern at this time were: the firm's central investment proposition (CIP) be designed to meet the needs and objectives of its target clients; the firm's sales process be designed to ensure a CIP is only recommen...

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