After many years of steady growth, the current investment environment has become more volatile. Many investors are seeing declines in their portfolios and are asking themselves whether they should sell, invest more or do nothing. The role of investment objectives to answer the question will be examined in more detail. In regulatory terms, investment advice includes the inquiry and recording of ...
The regulatory requirements for investment advisory processes have become more and more sophisticated in recent years. Advice should be honest, fair and in the best interests of the customer. But why does it take legislation to regulate something that goes without saying? Because investment advice costs money. Since money, in turn, is a powerful behavior amplifier, possible conflicts of interest ...
Scenarios play an important role in investment advice. They establish the context from which an investment decision is made. Only the embedding in a scenario makes the decision to buy a certain product plausible and motivates it. That is why we show in this article what role scenarios play in thinking, what added value is achieved with the consistent digitalisation of scenarios and which product ...
A bank that wants to organise investment advice needs a structured approach in order to stand out from the competition in the long run. On forward-finance.de we present some exemplary processes in a loose series. This article revolves around an advisory approach that we have called thematic advisory because investment narratives play a central role in it. The functions described below are part of ...
When people try to make sustainable investment decisions as self-decision-makers, reference is made everywhere to the ESG criteria of environmental protection, social responsibility and good corporate governance. An investor willing to invest makes a selection from a number of companies or sectors and invests in those securities that best meet ESG criteria. Ideally, they will have some sort of ...
The match between customer and investment is called suitability. Approaching the details, it becomes clear that only a section of a customer’s investment topics is considered and the collected data is categorised and thus coarsened – also because only a few standard products are available. On the other hand, customised advice as offered by family offices does not require any ...
The match between customer and investment is called suitability. Approaching the details, it becomes clear that only a section of a customer’s investment topics is considered and the collected data is categorised and thus coarsened – also because only a few standard products are available. On the other hand, customised advice as offered by family offices does not require any ...
Our solutions provide parameters thru regression analysis and other methods. For end customers such methods are too complex to understand in a short time period. Investment advisors are in a perfect position to deliver suitable narratives for every customer. Such bridging of the gap of explainability is more difficult for robo-advisors. The article describes a growing momentum for explainable ...
The virus driven lockdown brings with it a massive transformation of working processes. Video conferencing, document sharing, and cloud solutions have been swiftly adopted to keep operations up and running. The efficiency of digital tools has been tested, approved and introduced in mere days. We would like to assume that this precedes a tremendous surge in further digitalization in the years ...
When it comes to the integration of the new ESG (Environmental Social Governments) regime into the architecture of investment advice, it is important to consider all phases and aspects of the customer buying cycle. In technical terms, the EU catalogue of criteria known as “ESG taxonomy” is an additional set of auxiliary conditions for portfolio advice. The social and psychological aspects of ...