The risk profiler is provided by Quilter and hosted on our technology platform. It can be used by financial advisers to support a compliant sales process by quantifying the level of risk that their client is willing and able to accept for a particular investment. The client is asked a series of questions about his/her attitude to risk and a risk score between 1 and 10 is then determined based on the answers to these questions.
Each risk score is then directly related to an asset allocation in our portfolio planning tool which is optimised for tax, depending on internal tax and charges within each tax wrapper selected.
Our Risk Discussion tool, available on our website and as a mobile application (or ‘app’), can further support the adviser with discussing the output from the risk profile questionnaire to ensure the client understands the risks they are taking through the proposed investment. It illustrates the annual ‘expected returns’ for the risk score that has been generated, and the average of all possible returns within that risk level. It can also be compared against an alternative risk level should the client not agree with the score provided from the answers given on the questionnaire.