The Risk Profile screen covers the fundamental aspect of “Know Your Client” requirements for Financial Planners. It also identifies your client’s risk profile to allow you to create an asset allocation strategy that is appropriate for your client.
If you are on a corporate deployment this is one area where it’s fairly common for a corporately branded site to use a custom risk profile. Thus you might find that your Risk Profile screen is quite different from what you see here.
Within our core versions of PlanPlus Planit' the questionnaire is to only include questions that relate specifically to a clients risk tolerance. All questions that relate to a client’s investment objectives and portfolio preferences are within the Portfolio Objectives screen. Not because they are not important, but because it’s more meaningful to look at the portfolio objectives separately from the risk tolerance.
A client’s risk tolerance is what it is – they only have one. A client’s portfolio objectives are a totally different matter. We have created a separate set of questions designed to identify a client’s portfolio objectives at a different screen. The power in this approach is that you can now have more than one portfolio in PlanPlus Planit and each can have totally different portfolio objectives, depending on the goals associated with each. This allows you to make investment recommendations for each “Portfolio” that recognize those unique portfolio objectives.
Because of segregating out the portfolio objectives from the risk tolerance questions, the result is a shorter set of risk tolerance questions, only 7 as opposed to 11. The 7 questions used in our core risk tolerance questionnaire are based on “FinaMetrica Lite”. Advisors can still upgrade to full “FinaMetrica” questionnaire for even more accurate results. The scoring is out of 100.
To read help on the Full FinaMetrica please click here.
Scoring is as follows:
- Low= 0-40
- Average= 41-60
- High= 61-100
Please Note: When you come into this screen on an older legacy client you will notice that you will see the older version of the Risk Profile, this is because if you wish you can retain this information for your clients or you can upgrade them to the newer risk profile. We have done this since you will need to have your clients answer the newer risk profile.
Also note that if you do not upgrade to the new risk profile you will not be able to use the NEW portfolio objectives since this was built to flow over with this new method.
Multiple Risk Profiles
Please Note: that if you are on an older legacy client and do not wish to upgrade to the new risk profile you will NOT have the ability to do multiple risk profiles.
When you click on the "Another Person" button this will allow you to choose the family memeber by selecting a radio button. The screen will then refresh and you can answer the questions for the other family memeber.
Know Your Client
The “Know your Client” tab allows you to capture specific KYC information that’s essential to meet compliance standards.
Remember that this is not risk tolerance this is more of knowing their investment experience, knowledge and past investments that they have saved in.
Once you have completed the risk profile questionnaire for your client, you can move on and identify their portfolio objectives.
Once you have completed your responses to these questions, click on the “Calculate” button. This will tabulate your results and display the score and the clients risk tolerance at the top of the screen. Once you click "Save" the screen will refresh and make the screen hard coded with check marks on your answers, this is done to help reduce mistakes by accidentally changing an answer. So if you want to edit the screen you have to hit the "Change Profile".