When we think of investment advice, the first question almost always asked is “what’s the client’s risk profile”? Like Pavlov’s Dog, it’s almost a conditioned reflex to the way the industry has operated over so many years. Of course, it’s important to understand what type of investments the client would be ‘comfortable’ with, but does it really help them achieve their goals and is it really in their best interests to invest according to a risk profile questionnaire?
New consumer-centric financial product and distribution obligations from April 2021 offer astute financial advisers an opportunity to not only meet the requirements, but to gain an edge in achieving superior client outcomes and improve their business practices.
Investors are more knowledgeable about the market and their portfolios than ever before. They can see that not all is right in the world and there is an air of fear and doubt sweeping through many financial conversations.
Matthew Walker is a passionate advocate of Goals Based Advice and Goals Based Investing, and former Chairman of the Association of Goals Based Advice. Today he is the Managing Director of Dynamic Asset and Chairman of Dynamic Asset Investment Committee.
In this interview, he shares his thoughts on:
The two significant trends in contemporary financial advice are Goals Based Investing and Managed Investment Services. While the client and business drivers of each are independent, both innovations are set to transform financial advisory practices over the coming years.
