ATR profilers: Regulatory tick boxing or planning essential?

RISK

Laura Miller
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Attitude to risk profiling tools have exploded from virtually none ten years ago to dozens today. Laura Miller finds out how valuable they are to the advice process.

The modern-day mantra for advisers is to make their processes ‘replicable, repeatable, and consistent’. Little wonder, then, the rise of the risk profiling tool – which, after a series of questions, neatly funnel clients into an investment portfolio based on their attitude to risk (ATR). But can it really be that simple? Graham Bentley Investment Intelligence managing director Graham Bentley thinks not. He said attitude to risk questionnaires are “generally badly constructed, grossly misleading and ultimately pointless”. “The problem is most [ATR tools] are put together to solve a ...

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