Investment risk and strategy management tools, underpinned by industry-leading research, helping advisers provide consistently effective and profitable advice, whilst remaining fully compliant.
When it comes to offering reliable, robust advice to clients, having a clear handle on investment risk is essential. Due diligence and research have become even more central to the advice process, particularly due to MiFID* II’s requirement that all advice demonstrates proof of suitability at point of sale and review.
Regulator reviews consistently indicate a need for better use of research tools and a greater disclosure of the research underpinning independent advice – which is where Synaptic’s tools can really impact your business.
Managing your investment risk
Within the full Synaptic suite, we offer intuitive software for risk and suitability assessment and investment risk management for head offices, paraplanners and advisers, combining Moody’s Analytics investment strategy and stochastic projections.
A2Risk and Moody’s Analytics, available within all our risk solutions, demonstrate the most thorough and proven academic underpinning of any comparable system. Synaptic provides the research required to enable advisers to consistently provide effective and profitable advice, whilst remaining fully compliant.
Synaptic has been a leading provider of research tools for advisers for over 20 years, enabling advisers to streamline their advice and evidence their expertise to customers.
Adviser firms can access our risk assets free of charge, with the option to subscribe to additional software research tools to assist in other areas of due diligence or financial planning.
Synaptic Risk: your complete solution for investment risk management comprises…
1. A2R Attitude to Risk Questionnaire – free access available
This psychometric 12 question questionnaire is designed to align to the Moody’s risk model. Available in 1-5 and 1-10 formats, it assists in determining clients’ propensity to risk and presenting research-backed recommendations.
2. Investment Strategy – free access available
Using Synaptic’s investment strategy tool, all investments can be profiled within the Moody’s risk framework. This tool helps you identify a risk and reward framework based on optimum asset allocation.
Unlike other solutions, which base their risk models on volatility bands, this tool uses Moody’s model to forecast probability of viable investment outcomes, allowing risk to be quantified and matched more meaningfully to a client’s ‘Capacity for Loss ’.
The Moody’s model can be used with 1-5 or the newly added 1-10 range for risk appetite.
3. Synaptic Risk Ratings – free access available
Over 40 asset managers’ funds and portfolios risk mapped to the Moody’s risk framework.
4. Synaptic Modeller
Allows you to risk profile your clients and demonstrate suitability of your investment recommendation from a risk perspective. Any fund or portfolio can be used in this way.
We will provide you with a login to the Synaptic Suite at no charge, with no commitment required. This grants you immediate use of the Attitude to Risk Questionnaire, Investment Strategy and Risk Ratings tools. Additional modules including Synaptic Comparator, Modeller, Analyser can be accessed on subscription basis.
Key benefits to your clients
- Adopting Synaptic’s risk management tools will help you streamline the advice process, allowing you to offer consistent and accurate advice, and ensuring advice is effective and outcomes are predictable.
- The tools demonstrate the asymmetry of investment terms and the dynamics of risk and reward, ensuring clients fully understand their investment and the risks involved, with illustrations relating directly to their investment scenario. This helps achieve informed consent for investment planning.
Contact us to find out more and arrange a discussion about investment strategy and risk management
* The Markets in Financial Instruments Directive is the EU legislation that regulates firms who provide services to clients linked to ‘financial instruments’ (shares, bonds, units in collective investment schemes and derivatives), and the venues where those instruments are traded. https://www.fca.org.uk/markets/mifid-ii