Financial advisers around the world are experiencing rapid change to their regulatory environment. In the UK we have linked with another energetic service supplier, Voyant, to provide advisers with an integrated planning platform to meet the increased focus on personalised advice. If you only have a few minutes to spend on this newsletter do watch the youtube video. It will show you what is possible. If you are being encouraged to take a lower standard than psychometrics in your risk tolerance testing you should read the definition and processes outlined in Psychometrics 101 and read the short article on risk tolerance myths.

The UK's Voyant & FinaMetrica Alliance Set New Bar for Quality of Advice

Leading financial planning application suppliers, Voyant and FinaMetrica, announce an alliance to provide financial planners and wealth managers with a best of breed financial planning and risk profiling platform.

FinaMetrica's psychometric risk profiling methodology has now been fully integrated with the Voyant Adviser financial planning platform, providing advisers and wealth management groups with immediate access to a well tested, sophisticated and scalable enterprise solution see youtube video, see press release.

Psychometrics 101

The importance of using a psychometric test to measure personal financial risk tolerance is becoming widely accepted. But what is psychometrics? In brief, it is a scientific discipline, a blend of psychology and statistics, for psychological measurement, which includes the measurement of knowledge, abilities, attitudes, and personality traits. The field is primarily concerned with the construction and validation of measurement instruments. A good overview of what is required to construct a psychological test can be found here. Psychometric standards focus on validity and reliability - a valid test being one that measures what you think you are measuring and a reliable test being one that measures consistently. For readers interested in exploring further, a brief video on validity and reliability can be found here.

Risk Tolerance Myths

Discussions about risk tolerance often include more fiction than fact. Cobus du Plessis from the Institute of Behavioural Finance, our South African business partner, succinctly exposes the five most common myths about risk tolerance click here.

Paul Resnik to Visit UK

FinaMetrica cofounder Paul Resnik will be visiting the UK from early May to meet with IFAs and service suppliers to the givers of financial advice. He will deliver a number of papers in relation to FinaMetrica's latest research and plans for the future. He is happy to talk with anyone thinking through the practical consequences of the FSA's recent guidance paper. He is also open to suggestions for group presentations in any part of the UK, discussions with FinaMetrica subscribers, talking with those thinking of making a decision on risk profiling and anyone else in the service and product supply chain looking to build turn-key solutions. Contact paul.resnik@finametrica.com.

For some great information and free reports, visit us at www.riskprofiling.com.

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