Advisers call for better drawdown risk assessment method

The regulator is consulting on changes to COBS prompted by the removal of the age-75 rule, including replacing old terminology. However, the CP could also be a chance to improve best practice in calculating and demonstrating the risks of drawdown to clients, according to advisory firms. Measures could include a more effective way of assessing the suitability of drawdown than the current critical yield method. The critical yield is the rate of return required to maintain a selected level of income from an investment. Despite not being strictly necessary, it is widely used by IFAs to...