FinaMetrica has laid out terms for a common risk lexicon to be adopted by the industry to help consumers understand risk and prevent "negative investment surprises".
In a new report, the firm set out a range of terms associated with investor risk tolerance and the wider concept of investment risk, to be used as a starting point for further discussion. FinaMetrica said it wants to encourage representatives from businesses across financial services to form a working group to turn the initial concept of risk language into a practical toolkit for the industry. Co-founder and director Paul Resnik said: "FinaMetrica has argued for a long time now that a sound understanding of clients' risk tolerance can help discourage portfolio churn and, ultimately ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes