SOURCE: AdvisoryWorld


July 30, 2015 10:00 ET

AdvisoryWorld Releases 2015 Risk Management Survey Results; Finds Recent DOL and SEC Moves Have Had Minimal Impact on Financial Advisors' Risk Management Processes

Surveys 242 Financial Advisors on Their Risk Management Internal and External Processes and Technological Involvement in Today's Regulatory Environment

LOS ANGELES, CA--(Marketwired - Jul 30, 2015) - AdvisoryWorld, the leading provider of investment analytics, portfolio modeling, and proposal generation technology for the financial services industry, today released the results of the AdvisoryWorld 2015 Risk Management Survey ("Survey"). The July 2015 Survey polled 242 financial advisors nationwide on the impact recent regulatory moves have had on their risk management processes. Respondents were asked to reflect on their internal risk assessment practices, client interactions, internal documentation procedures, suitability assessment practices, risk management approach, and their ideal risk measurement software features.

The Survey found that recent and relevant DOL and SEC moves have had minimal to no impact on 67% of the polled advisors' internal risk assessment processes. 68% of surveyed advisors also reported that recent DOL and SEC moves have had minimal to no impact on their client interactions regarding risk assessment. Additionally, 62% of the advisor respondents are not changing their documentation practices in anticipation of the DOL fiduciary duty rule being finalized.

"Clearly, advisors understand the issues raised by new SEC requirements, FINRA's Rule 2111, and the DOL Fiduciary Duty proposal, and are already using technology to better measure investor risk profiles and the risk/return characteristics of their investment portfolios," said Philip Wilson, CEO and founder of AdvisoryWorld. "These survey results also show that advisors are utilizing technology to document their analysis and recommendations to clients for compliance. It's reassuring to see that our industry isn't scrambling to satisfy these new and/or upcoming regulatory requirements."

As regulators increase their focus on suitability and fiduciary duty, the role of technology in the risk management arena is increasing as well. 67% of surveyed advisors reported that they currently have an integrated system in place for monitoring and managing suitability of each household's investments across their entire book of business. This response implies a use of technology in these advisors' practices and also sheds light on how technology is helping advisors prepare for heightened regulatory scrutiny. To delve into this technology trend, advisor respondents were asked to weigh the importance of certain risk measurement software features. Integration with performance reporting software was ranked highly by the advisors with 57% marking it as "Very Important," 38% as "Important," and 5% as "Not Important." Compliance and Documentation Features ranked high as well with 50% marking it as "Very Important," 44% as "Important," and 7% as "Not Important."

"The role of compliant and thorough risk measurement software in the advisory industry is growing daily," said Michael Wilson, COO and President of AdvisoryWorld. "We conducted this survey to get an advisor-eye view on risk management in today's regulatory environment. As advisor technology providers, we value anonymous feedback from our client base. It helps us to better understand our clients' needs and, by sharing the information, it helps our clients know where they stand in the industry."

About AdvisoryWorld

AdvisoryWorld is the leading provider of investment analytics, portfolio modeling, and proposal generation technology for the financial services industry. Their technology tools are fully customizable and are delivered via off-the-shelf web applications, API, and Professional Services. Founded in 1987, AdvisoryWorld is headquartered in Los Angeles, CA, and currently services over 30,000 investment professionals nationwide. For more information, please visit

Contact Information