Two practical and two background pieces make up this final newsletter for 2011. In particular please read about, and comment on the ADAPT process that provides a framework for the matching of portfolios to the needs of clients.
Two practical and two background pieces make up this final newsletter for 2011. In particular please read about, and comment on the ADAPT process that provides a framework for the matching of portfolios to the needs of clients. |
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ADAPT is a Simple Approach to Matching Portfolios to the Needs of ClientsAre you uncomfortable with the way your firm's advisers match investments to clients’ needs? If you are discomfited, you are not alone. Regulators, and by default advisers, around the world are paying increasing attention to the logic and rationale used to reach investment recommendations. Click for Paul Resnik's blog post. |
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Seymour v Ockwell UK: Duty of Care, with a Surprising KickerThe regulations which govern professional obligations reinforce the basic principle that an adviser must exercise independent judgement. The task cannot be delegated to a third party. The third party had no duty of care to the claimant in this case but did have a duty to the adviser. Click for summary. |
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Herd Behaviour: A Valuable Story to Share with ClientsIn the majority of circumstances, the natural, perhaps sub-conscious instinct to herd serves a useful purpose. In addition it turns out that your relative position in the crowd matters a lot! However there are dangers. Professor Andrew Oswald from the University of Warwick delivers an informative and entertaining lecture at the London School of Economics on the significance of herd behaviour. Click for article. |
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Are the Inconsistent Patterns of Human Error Predictable?Michael Lewis talks with influential psychologist Daniel Kahneman. The agent of economic theory is rational, selfish, and his tastes do not change. But to a psychologist, it is self-evident that people are neither fully rational nor completely selfish, and that their tastes are anything but stable. The human mind is so wedded to stereotypes and so distracted by vivid descriptions that it will seize upon them, even when they defy logic, rather than upon truly relevant facts. Click for Vanity Fair article. |
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Compliments of the SeasonNo matter whether you work in the cold of the northern hemisphere or the heat of the south, the FinaMetrica team wish you a reviving break and a good year ahead. |
For some great information and free reports, visit us at www.riskprofiling.com. |
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Copyright © FinaMetrica Pty Limited. 2011. All rights reserved. |
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