Investment research today involves more than looking at Money Marketing with an old ruler and a dry highlighter. The financial advice industry is now supported by a wide variety of cutting-edge research technology that is designed to help advisers with the knowledge and analysis they need to give sound investment advice to their clients.
Regulation, regulation, regulation. It can sometimes feel like we in the financial services are inundated by changes to regulation. But as increasing numbers of asset managers choose to communicate with clients and prospects via blogs, LinkedIn and Twitter, it is important that this industry keeps a keen eye on what is expected off of them in regards to the regulation around social media.
Financial advisers can underline their value to their clients by not just firming up the investment suitability process but also by explaining each step to educate the investor. In its final guidance paper on assessing suitability in 2011, the Financial Conduct Authority laid out what would be the new lay of the land – and that is: simply using a questionnaire to help assess portfolio suitability would no longer be acceptable.
Only 19 cautious funds have managed to return in excess of 1 per cent year-to-date, while only 46 funds from 150 cautious funds have managed to avoid losses at all this year (zero per cent or higher return).
Today’s financial landscape boasts a wide variety of methods to invest client assets. Irrespective of portfolio size or life stage of the investor; there is a solution that can match their risk level and specific objectives. Whilst this comes as great news for advisers and investors it often leaves paraplanners with a whole lot more to think about when conducting due diligence.
Time and again, advisers seem to find themselves in hot water with the FCA (Financial Conduct Authority) over not demonstrating the suitability of their investment advice adequately.
