In conversation with advisers: Risk profiling - how should risk be targeted?

clock • 1 min read

Partner Insight: Flora Maudsley-Barton, managing director of Parsonage Financial and Kerry Nelson, managing director of Nexus Financial met in London recently to discuss how risk should be targeted.

 

In the third video of the series Editor of Professional Adviser, Julian Marr talks to Flora Maudsley-Barton and Kerry Nelson about the evolution of risk-profiling (see above).

Nelson (Parsonage Financial): "Risk profiling has become more sophisticated than it was say five years' ago. It is evolving so much, there are new entrants and the regulator is becoming much more involved in this whole topic. So I think it [risk profiling] has come to the forefront for advisers right now."

Maudsley-Brown (Nexus Financial), however disagrees with Nelson: "We have been risk profiling from the start. So we know as much about risk from day one, to after day one."

Nelson believes that is not only important for advisers to understand different levels of risk, but the client also: "We will have the basis risk profile in place, to give us the bare basic of what the client's risk profile is like, but we will bring other tools to help clients understand the level of risk associated with that particular level of investing.

"I think if you put your clients in a better position of understanding investing at better risk levels, how long their cash will last over a period of time and how they will meet their objectives over time, you can use this not only as a means to engage with the client but on an ongoing basis as well," Nelson adds.

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