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Created on Thursday, 29 September 2011 16:00

Parmenion, the investment solution and adviser support specialist, today announced the launch of an enhanced Risk Profiling Questionnaire, designed to integrate seamlessly into the client advice process and provide an accurate measure of financial risk tolerance.

Another tool in Parmenion’s extensive online adviser support suite, the Questionnaire provides a score that represents a client’s tolerance for risk, as well as an indication of their capacity for loss. The overall risk score is then used to generate risk adjusted investment portfoliosthat can be selected from Parmenion’s wide range of investment solutions.

After a substantial and independent review by international business and psychology consultants, Edgecumbe Consulting, Parmenion’s Risk Profiling Questionnaire harmonises with the FSA’s views on ‘Assessing Suitability’.  It offers ease of use and psychometric accuracy.   It has also been formally approved by Tenet Group’s compliance team.

Richard Mein, Managing Partner of Parmenion, said:
“Accurate risk profiling of clients will remain a key element in the financial advice process, following a report on assessing suitability issued by the FSA earlier this year.  Parmenion welcomes the emphasis on Advisers needing to collect, and properly account for, all the information relevant to assessing thedegree of risk a client is willing take.

“Researching appropriate asset allocations for different groups of client can be a time consuming task which can take Advisers away from their primary purpose of advising individuals.  Our Risk Profiler is an efficient way to calculate a client’s risk appetite and it isfully integrated into an Adviser’s business, through our online process which covers everything from risk profiling all the way through to portfolio construction.

“At Parmenion, we constantly strive to improve the service that we provide to Advisers. Since 2006 we have worked in partnership with Advisers to help them thrive in the ever evolving market, and the Risk Profiler is another example of this.  As the RDR draws closer, we have seen an increasing number of Advisers turn to us for not only our deep industry knowledge, but our wide range of investment solutions.”