Is your approach to risk in harmony with your DFM's?

The Financial Services Authority (FSA) has begun to take a marked interest in investment outsourcing, as risk-profiler Finametrica is all too aware. Its technical manual, detailing the academic theory behind the firm’s tests, used to run to 30 pages. The updated version is four times that, at 120 pages. The burden on all parties – discretionary fund managers (DFMs), advisers and risk profilers – is growing as the FSA becomes more involved, co-founder Paul Resnik said, though perhaps not with good reason. “It’s like imagining every doctor has their own blood pressure machine,” he sa...