SBG launches new risk profiling tool for advisers

→ Sesame Bankhall Group (SBG) has created a new risk profiling tool for advisers in collaboration with Barrie & Hibbert, Oxford Risk and leading technology provider IRESS.

The SBG tool, called Investor Risk Profiler, has been developed to fully comply with recent FSA guidance on assessing suitability and will use 18 psychometric questions, designed by Oxford Risk, along with four suitability questions from SBG, to help evaluate a client’s true risk tolerance, taking into account clients’ capacity for loss and other key factors.

This intuitive system has been developed with technology provider IRESS and will enable advisers to produce tailored client reports that explain and visualise the risk assessment process, summarise the information gathered and confirm agreed outcomes.

Barrie & Hibbert has designed asset allocation and volatility parameters to match the risk profiling tool outputs. The tool and accompanying guidance will form an important part of the conversation between an adviser and their client to make sure that the client’s risk tolerance has been accurately assessed and, importantly, documented in order to protect them in the future. Investor Risk Profiler will be rolled out to Sesame members and Bankhall customers from July.

Mark Loosmore, Business Development Director at IRESS comments:

The FSA has been very clear about the importance of understanding a client’s attitude to risk and their capacity for loss. Advisers need to ensure they have a robust mechanism in place to achieve this. SBG are providing their members with a tool that not only uses a well-researched questionnaire to measure risk, but also uses a proven stochastic model to provide forecasts for the growth of the assets and to illustrate their volatility. The tool is an important aid to assist the adviser in communicating the risk to the client and, in addition, the SBG tool allows the analysis to be done at an individual goal as well as client level.

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Sesame Bankhall Group Limited, company number 3573352. Sesame Limited, company number 2844161. Sesame Services Limited, company number 2338540. Bankhall Support Services Limited, company number 2785381. Sesame General Insurance Services Limited, company number 01902998. Premier Mortgage Service Limited, company number 05011650. Each company is registered in England & Wales with a registered office at Pixham End, Dorking, Surrey, RH4 1QA. Bankhall Support Services Limited and Sesame Limited are authorised and regulated by the Financial Conduct Authority. Sesame General Insurance Services Limited and Premier Mortgage Service Limited are appointed representatives of Sesame Limited.