Der Spezialist für Investorenprofilierung und Behavioural Finance Oxford Risk bringt mit Compass eine innovative, wissenschaftlich validierte Lösung für Eignungs- und Verhaltensanalyse auf den Markt.
Risk profiling and behavioural-science specialist Oxford Risk has launched a new suite of scientifically validated end-to-end client suitability and behavioural-insight tools.
In last week's superb FT article on matching investors to investment risk, John Kay rightly points out the foolishness of using recent historical volatility as a proxy for (future) investment risk. However, whilst focussing on the problems with establishing the risk of investments, he only briefly touched on determining appropriate risk levels for investors.
The birds and the bees, why a zoologist is talking about financial risk
Risk profiling is essential to providing good advice, and to ensuring regulatory compliance. Unfortunately, the profiling field is rife with misunderstanding and poorly designed assessment tools, leading many advisers to view risk profiling as an unnecessary box-ticking exercise, rather than a simple and effective way to improve client outcomes.
A new independent review has set out how government and the financial services industry can work together to build a culture of social impact investment in the UK.
The FT Advisor ran a story on Suitability and the advice process under MiFID II yesterday.
Greg Davies of Centapse, who recently joined Oxford Risk, was interviewed after his talk at the Festival of Financial Planning 2017.
Greg Davies recently featured in the Financial Wellbeing podcast with Chris Budd.
The partnership will bring together industry leading capabilities in decision science, behavioural finance, and risk profiling.
A recent article for Money Marketing raised the question of whether risk profiling tools should have standardised scales
Here at Oxford Risk, we take the satisfaction and support of our clients seriously.
Imagine a man in his fifties. He’s got some money to invest. What does he do? He’s got to either take a risk with it on the markets and/or bonds, or he can ‘play it safe’ by keeping it in cash.
Suitability is the concept of ensuring that the advice given is the most appropriate, that it is aligned to the risk profile of the investor and their personal goals and circumstances.
A recent article about investor risk profiling in the Financial Observer claims, ‘assuming that changing attitudes and investor behaviours were commensurate with a change in their appetite for risk was often “flawed thinking” as the behaviour of investors in situations where a high level of risk was prevalent was not always a function of risk tolerance alone’.
In response to the FT Adviser article; 'Advisers fear challenging client's attitude to risk', there should be little concern about punishment from the regulators as long as the adviser completes, or refreshes, a recent risk profiling process each time their clients want to invest.
When producing an SOA (Statement Of Advice), risk profiling is a standard requirement but how much insight is your current system providing?
Recent political events have re-introduced volatility into the markets. This is a good time to review your risk profiling methods to maintain suitability.
There is some concern within the industry about the upcoming MiFID II regulatory framework, expected to come into force on January 3rd 2018, specifically regarding suitability and appropriateness.
Considering the announcement by the Labour Party that they will be launching a pension commission to examine the current issues with the workplace and state pensions, including the pension freedoms act, this may raise concern amongst ageing investors about how they go about their wealth decumulation.
Our research has shown that an accurate risk-tolerance profile is one of the most important elements of suitability.
Adjusted Risk Tolerance – Improving the understanding of the investor
Professor Lord John Krebs and Professor Alex Kacelnik discuss Evolution Game Theory and investor parallels with animal risk behaviour
The uncertainty surrounding Britain's membership of the European Union has had substantial consequences for the UK economy: Most notably, the pound recently hit a 31-year low against the dollar.
As explored in a recent article, ‘The Challenge of Assessing Risk Capacity’, we explored the overall difficulties of assessing Risk Capacity, and the limitations of algorithmic risk profiling instruments.
Offering new insight into investor risk profiling and industry intelligence from academics from the University of Oxford, data scientists and industry leaders.
For financial advisers, assessing Risk Capacity, the retail investor’s ability to bear loss, is a regulatory and practical necessity once Risk Tolerance is established; both are key elements of the investor’s Risk Profile.
When offering advice to your clients, a Risk Capacity assessment may be a part of the risk profiling instruments employed, but how much do you understand such assessments, their value, limitations, and role in an investor’s risk profile?
Finding a financial advisor you are comfortable with is hard enough, but how can you be certain they are offering you the most accurate advice possible?
Receiving investment advice is an act of trust – but how can you be sure that the advice you are receiving is tailored for you?
The concept of mapping the outcome of a risk tolerance assessment to a range of suitable investment solutions has become a key concern for advisors and ‘Robo-advisors’ alike
Analysing UK investor preferences is a complex process which we manage very closely
Since the release of the FCA’s (the FSA) guidelines on investor risk profiling, the requirements an advisor must follow to adhere to a compliant risk profiling process have been set out.
In the last few years the UK financial advice sector has undergone significant changes. These range from an increase in regulatory obligations to the changing expectations of investors towards transparency.
Knowledge and Experience help determine the level of understanding the client has on the typical investment formats available.
Our data spans a decade, and hundreds of thousands of records. It is unrivalled in the sector for its quality and depth with every key type of investor.
It should be the aim of every financial advisor to provide a reliable risk tolerance test for their investors in help match them with the most relevant investments
If you want to provide the best service possible for your investors, testing their risk tolerance is only one part of the solution
Simply understanding a potential investor’s risk tolerance is not enough, you also need to know if they really want their investment
Risk tolerance is a stable measurement, but it is limited by being a relative indication of the customer’s tolerance to risk
As uncertainty increases, there is ever increasing pressure to offer robust investments to weather the storm
There are hints of a recession which will likely lead to a decrease in investor confidence. At times like this, you have to be able to offer reassurance to new and existing customers
One of our Directors, Prof Alex Kacelnik, has been making the news this morning.
Oxford Risk is pleased to announce the publication of research conducted by two of our directors, John Krebs, and Alex Kacelnik.
An article published this week by FT Advisor, warned advisors of the risks associated with “blindly following the asset allocation guidance of risk-targeting tools”
They serve as a timely reminder to both investors and advisors of the need to properly and accurately assess attitudes to risk as part of the investment advice process
There has been much debate this week about the risks associated with Structured Products
Martin Wheatley, the head of the Financial Conduct Authority, used a speech to the London School of Economics to tell his audience that he wanted to bring a “more human” face to the regulator