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Suitability Compass

A complete assessment of your client's financial and emotional situation.
Screenshot of suitability compass tool.
Suitability Compass is an end-to-end risk profiling solution, led by behavioural finance.

A comprehensive financial-profiling process is crucial in revealing an investor’s willingness and ability – both financial and emotional – to take risk, and to calmly take control of their finances. This goes far beyond risk tolerance.

Our approach supports vulnerable investors, evaluates goal affordability, and accounts for sequencing and drawdown risks.

What does Suitability Compass include?

Financial Personality

A psychometric Risk Tolerance questionnaire that’s thoroughly tested for reliability and validity.

  • Stable measurement of willingness to take investment risk
  • Includes key aspects of emotional ability to take investment risk
  • Two minutes to complete

Financial Circumstances

A Risk Capacity calculation that’s as dynamic as the investor circumstances it’s designed to deal with.

  • Built-for-purpose calculation of financial ability to take investment risk
  • Dynamic accounting for cash flows, goals, and time horizons
  • Two to ten minutes to complete

Knowledge and Experience

An investor-friendly Knowledge and Experience assessment that focuses on understanding of concepts, not mere exposure to products.

  • Includes vulnerability assessment
  • One minute to complete
  • Principles-based assessment of relevant investment education, history, and behavioural tendencies

End-to-End Suitability Solution

A scientifically and behaviourally validated means of understanding of what investments are suitable for investors.

  • An academically sound algorithm for establishing risk tolerance and capacity
  • A robust methodology for mapping investor risk profiles to appropriate investment risk levels
  • Automatic updates along the investment journey