Partner Insight: Flora Maudsley-Barton, managing director of Parsonage Financial and Kerry Nelson, managing director of Nexus Financial met in London recently to discuss how risk should be targeted.

In the third video of the series, they talk to Julian Marr, Editor of Professional Adviser about the evolution of risk-profiling (see below).

Nelson: “Risk profiling has become more sophisticated over the past five years. It has evolved with new entrants and the regulator taking a greater role in the whole topic. So I think it has risen to the forefront of advisers’ minds, and is an issue for them right now.”

Nelson believes that is not only important for advisers to understand different levels of risk, but the client also: “We will have the basic risk profile in place for our client. Then we will bring in other tools to help clients understand, the level of risk associated with that particular level of investing.

“I think if you put your clients in a better position of understanding investing at better risk levels, how long their cash will last over a period of time and how they will meet their objectives, you can use this not only to engage with the client, but also to manage the relationship on an ongoing basis,” Nelson adds.

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Further viewing:

In conversation with advisers: Where should the initial focus be – costs and client planning?