Risk & Capacity for loss

Hi All :).

Fairly new to paraplanning but was wondering what everyone does in terms of assessing a client's risk and capacity/tolerance to loss e.t.c.

Do you have a separate risk report that you refer to in the suitability reports or do you just include all of it in the suitability report?

I understand that the current trend and best practice is to condense the suitability report as much as possible to make it easier to read for the client.

Thanks,

Andy

Comments

  • The advisers I work with prefer everything to be in the main report, despite my suggestions to add appendices and put stuff in there. I know there are some paraplanners who have more appendices than report! There is a useful howwow in the archives about what people include in their reports: https://www.crowdcast.io/e/howwow-february17/register

  • All Risk Profile wording goes in the main body of our reports.

  • Has to go in the main report really. To my mind it is simply too fundamental to investment advice to be included in the appendix.

    On the wider point, I am fairly ambivalent. My preference currently (and it changes) is to include a summary of the advice (one page, one and a half maximum), the main report includes all of the mandatory stuff and the analysis etc , and the appendix simply describes what a pension is etc.

  • We have a separate risk report which is sent to clients and the suitability report covers investment experience, risk profile, capacity for loss and investment time horizon.

  • We have it in the main report.

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