Mabel Insights has launched a free risk profiling service and questionnaire for use by independent financial advisers.
The risk profiling service and questionnaire has already been launched and is currently live on the Mabel website.
Mabel Insights CEO, Lawrence Cook, said: “At the moment, to replicate what we offer based on our research and risk weighting and risk questions, IFAs would probably have to pay between £300 and £400 a month.
“We’re just getting rid of that cost for them straight away.”
Explaining how the service works, Cook said it begins by risk weighting as it allows the comparison of any portfolio and any multi-asset fund to be using the same risk language.
“You’re comparing apples with apples,” he explained.
The risk questionnaire then takes this “a step further” as, once clients have a risk profile using the same rating, “you can match it up against the risk profile of each of the portfolios that we’ve already risk rated”.
To achieve this output, Mabel created a 10-point questionnaire which, after receiving answers, produces a Mabel risk rating and an implied asset allocation.
Cook added that Mabel has also included an override on this output, acknowledging that a client’s overall circumstances need to be taken into account when advising them on investments, not just the questionnaire.
Market gap
Cook added the launch of this free service was a result of a perceived gap in the market, stating: “We think, generally, IFAs have been overcharged for this kind of service for many years.
“Based on the research we have we believe advisers resent how much they currently pay so we’ve responded to that with a service we think they’ll like.”
He added this service “should be, more or less, a utility for advisers and that’s why we’re pleased to launch it”.
Mabel Insights was launched back in January as a model portfolio comparison platform for financial advisers.
Since the launch, Cook stated that Mabel as reached 980 users and is closing in on one thousands users "well before our target date".
It has also weighted all 1,300 portfolios on its platform free of charge for IFAs.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
