Earlier this year, the FSA paper highlighted issues around the way questions were often framed and the way customer information was interpreted and said nine out of the 11 tools it looked at had “weaknesses which could, in certain circumstances, lead to flawed output”.
John Ruddick, head of IFA at Personal Touch, said the company had been considering existing options before the FSA warnings, but had subsequently decided to develop one itself.
“We were looking at the risk profiling tools on the market but our review was dramatically changed by the FSA paper,” he added.
“Fortunately, we have our own IT department and we have been able to create an end to end process where we can demonstrate clarity on how the risk profile was determined.”
Oxford Risk has provided the psychometric questionnaire for its client risk profiler, while Rayner Spencer Mills has been responsible for fund research and selection.
