The importance of academic psychometrics in relation to risk tolerance testing

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

Gillan Williams
Author Gillan Williams
Date 12th August 2016

There are multiple benefits beyond simply maintaining FCA compliance. By having a system that delivers not only accurate results but also helps match your customer to suitable investments, you will build trust and repeat custom due to a better performing portfolio for that investor. There are several systems that purport to do this effectively, but most do not employ academic psychometrics in their methodology.

With the backing of decades of research by eminent academics from the Oxford University and other prestigious universities and research centres, the Oxford Risk Rating system offers the most reliable, comprehensive, and accurate profiling in the world.

Having access to a pool of questions to choose from which have been rigorously tested to reveal insightful results, you will also have the reassurance that the investment products you offer will be suitable for your customer’s requirements.

To get in touch for more information and a free trial of our online profiling platform, click here

 

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