IWL to roll out risk tolerance and training tools
Financial planning software providerIWLwill roll out further services with the addition of a risk tolerance testing tool and an online training service for financial planners.
Both services are due out at the end of the month with the risk tolerance-testing tool - VisiProfiler - set to run as a trial product initially and supplied free to existing IWL clients, according to IWL Financial Advisory Solutions executive general manager Ross Johnston.
The risk tolerance tool will assess clients using psychological attributes and past experiences to form a risk profile that is specific to individual issues of the client and will develop strategies based on the balance between risk and life style aspirations.
It has been developed with Monash University and will examine physiological aspects of risk tolerance such as attitudes, feelings emotions, personal beliefs, and knowledge levels.
It will examine the client’s background, past experiences and attitudes to risk from different forces in the market such as volatility or changes in legislation and consider the level of control clients seek in their investments.
“The trial tool will also provide a risk assessment and financial planners will have the ability to agree or disagree with the assessment during the trial period. This will allow further fine tuning of the tool prior to its final release,” Johnson says.
TheFinancial Planning Association(FPA) last month released its position paper on risk profiling, stressing that gap analysis risk profiling was the preferred method over simple categorisation of clients on a spectrum from conservative to aggressive.
However Johnson says VisiProfiler has been designed to with the FPA’s position on risk tolerance testing.
“It is important that risk tolerance testing tools do not merely drop people in a risk rated bucket, but also extract certain individual preferences and characteristics of the client,” Johnston says.
The online training tools will be used to train advisers in the use of IWL products, particularly the group’s planning software -Visiplan - with IWL Training general manager Sally Hayes heading up the launch of the service.
The training tools will be self paced for users and updated as IWL releases new products or upgrades and will initially cover VisiPlan, but will be extended to include online planning software VisiWeb, practice management tool BizmaX and other training needs for financial planners.
AUTHOR
Jason Spits
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