There are several aspects to investment risk, how you feel about risk, how much risk you can afford to or wish to take and the risk of not meeting a particular goal or objective. In order to establish your attitude to risk, we ask you to complete this Risk Profiler Questionnaire. The profiler involves a questionnaire to assess how you feel about risk, together with a description and some numerical information designed to help you judge whether you are comfortable with the potential gains and losses from selecting a particular level of risk.
The questions have been designed to elicit an emotional response to risk rather than a pure factual one. None of your responses will have a direct bearing on the particular funds or products that may be recommended to you, but will be used as a basis for discussion and agreement regarding your final risk profile on which recommendations will be based.
1. Complete the questionnaire. It is important that you do so honestly and bearing in mind the questions relate to you generally rather than the particular investment you are considering. Your views about the particular investments you are considering will be taken into account in a later step. If you are in a financially dependent or interdependent relationship, both parties will be required to complete a Questionnaire.
2. Once you have completed the Questionnaire, we will assess this using a scoring system to gain an initial Risk Profile.
3. We will discuss your short and long term goals and objectives, investment experience and existing holdings, with you and consider the Potential Loss and Gain Value at Risk figures relevant to the description suggested by your score. If you regard the losses as unaffordable, returns insufficient or otherwise unacceptable to you, we will hold further discussions and look at alternative levels of risk and Potential Loss and Gain for these levels until you find a level and values that you are comfortable with. All of the potential losses and gains include broad brush charges.
4. Before deciding on a final risk profile, we will consider the term of which you wish to invest, the importance of the investment you are making in your overall financial circumstances and whether you can afford a sustained period of losses.
5. If you or your partner are each completing the questionnaire, you do not need to agree with each other regarding a final risk profile.
6. It may be that you are making multiple investments, possible for different purposes, and if so you may wish to adopt a different risk profile for each investment. If this is the case, we can discuss and determine your specific requirements together to ensure we agree an appropriate level. We will also discuss timescales, liquidity requirements and capacity for loss as part of your objectives.