Changing regulation and how best to manage it is the theme of this month's newsletter. We have linked with another energetic service supplier, Voyant, to provide UK IFAs with an integrated planning platform to meet the challenge of RDR. If you only have a few minutes to spend on this newsletter do watch the youtube video. You will be impressed by what Bob Freeman and his team have put together. 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. Finally, Paul Resnik, FinaMetrica co founder will be in the UK in May.

FinaMetrica's Reflections on the Standardisation of Risk Tolerance Assessments in Light of the FSA's Recent Risk Suitability Guidelines

Assessing risk tolerance has been an Achilles heel of the advising industry for many years. Many advisers had well-founded doubts about the questionnaires they used but all the alternatives seemed much of a muchness ... click here.

Voyant & FinaMetrica Alliance Sets New Bar for Quality of Advice

Leading financial planning application suppliers, Voyant and FinaMetrica, announced an alliance to provide financial planners and wealth managers with the ultimate, 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.

Get Started Today - Limited time offer for Voyant and FinaMetrica subscribers!
Click here to register for your free, no obligation trial of FinaMetrica in Voyant Adviser. The integrated service is free until the 1st of January 2012 to those subscribing to both FinaMetrica and Voyant Adviser by June 30, 2011. After this date, the cost of this optional integrated service is £25 per month per adviser.

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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