Saturday, July 12, 2014
Investor risk profiling :Vanguard
Canadian investment dealers have a long way to go to reach an acceptable level of client risk assessment. This should be a priority. More importantly, dealer Rep NAAF's and processes need to be overhauled to deal with an increasingly demanding public and of course senior demographics. And on top of that we still have the Best interests issue to deal with . The industry needs to get to portfolio risk profiling and unglue itself from its exclusive focus on product risk. In other words, the prevailing regulatory system still says that if the client is "medium risk" as an overall profile then they cannot have any allocation - however small - in any product rated as more than "medium risk". So the product risk and how regulators look at portfolios have to change in tandem. And that's unlikely to happen anytime soon. That's why investor advocates keep on their tireless mission. Read the article and get a better understanding of risk.