Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Oxford Risk launches suitability proposition for wealth managers

Oxford Risk launches suitability proposition for wealth managers

Oxford Risk has launched a proposition designed to make wealth managers' suitability systems more robust. 

Called Compass, the service was designed by ex-Barclays Wealth behavioural and quant finance boss Greg Davies (pictured). 

Compass, which is also available to advisers and platforms, comprises a suite of behavioural insight tools, which Oxford Risk says have been 'scientifically validated'.   

It combines quant finance tools with decades of behavioural science research, with the ultimate aim to better understand investors, improve their financial decisions and match them to suitable investments.  

'The comprehensive suitability suite helps advisers and investors to navigate investment complexity by accounting for an investor’s psychology, circumstances, emotions, and financial understanding,' Oxford Risk said. 

Davies, who joined Oxford Risk a year ago, after a decade with Barclays, added: 'Compass moves beyond the narrow view of what it means to own a good investment portfolio to a wider view of what it means to be a good investor.

'Just as it would be remiss to prescribe medical care without considering their lifestyle and goals, it is remiss when giving financial advice to focus on investment solutions without giving the same attention to the psychology and emotional comfort of the investor.' 

One of the key elements of the Compass toolkit is a psychometric risk tolerance toolkit, which is complemented by a dynamic risk capacity calculation to determine an investor's long-term risk profile. 

On top of this is a behavioural scale which analyses nine levels of client behaviour.  This ranges from the ability to manage short-term emotional comfort, personality, capacity to make decisions and general composure, alongside tolerance to risk. 

This is layered with a 'knowledge and experience assessment', which 'measures [and] strengthens' an investor's understanding along the way.

Oxford Risk believes these tools not only enhance client understanding, but also improve client engagement. This in turn should ensure a greater consistency of advice and future-proof compliance processes.  

CEO Marcus Quierin, said: 'A suitability approach that pays proper scientific attention to each investor’s unique circumstances and the behaviours they employ in the search for emotional comfort, is long overdue.' 

'We see suitability as a chance to provide a supporting structure within which advisers can operate better, rather than obstacles that get in their way.' 



Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play Quilter CEO on IFAs, robos & his own DB transfer

Quilter CEO on IFAs, robos & his own DB transfer

In the final part of our interview with Paul Feeney, the Quilter chief executive declares that the government has 'left the ring' on savings policy, rounds on robo-advice, and reveals his own experience of the DB transfer market.

Play CEO Tapes: ESG - we need to get better at the 'G'

CEO Tapes: ESG - we need to get better at the 'G'

In the second part of our CEO series, we explore the burgeoning ESG concept with fund bosses outlining how they try to make a difference.

Play 'They've done it before': Feeney on Quilter quitters

'They've done it before': Feeney on Quilter quitters

In the second part of our exclusive video interview with Paul Feeney, we hear the Quilter CEO's views on the investment managers leaving the firm, along with his promise to platform users.

Read More
Wealth Manager on Twitter