Risk & Capacity for loss
AndyRichards
Member
Hi All 
.
Fairly new to paraplanning but was wondering what everyone does in terms of assessing a client's risk and capacity/tolerance to loss e.t.c.
Do you have a separate risk report that you refer to in the suitability reports or do you just include all of it in the suitability report?
I understand that the current trend and best practice is to condense the suitability report as much as possible to make it easier to read for the client.
Thanks,
Andy
Comments
The advisers I work with prefer everything to be in the main report, despite my suggestions to add appendices and put stuff in there. I know there are some paraplanners who have more appendices than report! There is a useful howwow in the archives about what people include in their reports: https://www.crowdcast.io/e/howwow-february17/register
All Risk Profile wording goes in the main body of our reports.
Has to go in the main report really. To my mind it is simply too fundamental to investment advice to be included in the appendix.
On the wider point, I am fairly ambivalent. My preference currently (and it changes) is to include a summary of the advice (one page, one and a half maximum), the main report includes all of the mandatory stuff and the analysis etc , and the appendix simply describes what a pension is etc.
We have a separate risk report which is sent to clients and the suitability report covers investment experience, risk profile, capacity for loss and investment time horizon.
We have it in the main report.