As well as assessing a client's willingness to take risk i.e. their attitude to risk, it is obviously also important to consider their need and ability to take risk i.e. their capacity for loss.
When building a Suitability Report in Genovo, you are prompted to confirm the client's capacity for loss in the Capacity for Loss step of the Recommended Investment Strategy section. To aid your understanding of the kind of wording that's required here, Genovo comes preloaded with a number of standard options to choose from e.g.
| "You have indicated that you would have a capacity for loss of up to *INSERT*%. This is simply an indication of the amount you could afford to lose if investment markets do not perform as anticipated. You confirmed that you could afford to lose this amount without it seriously affecting your current standard of living or future objectives...." |
However, in all likelihood you will want to use your own custom advice options to reflect your own risk profiling process.
How to add a custom capacity for loss advice option?
You can add a custom advice option to this step in the usual way. Here's a link to an article that explains how.
How to share a custom capacity for loss advice option?
Once you've added a custom advice option you can then, depending on your role, share it with the team. To learn how click on the link below.
How to hide a standard Genovo capacity for loss advice option?
Having added (and shared) your custom capacity for loss statements you will probably want to hide the standard Genovo advice options so they don't appear in the Capacity for Loss step when you (and your other account users) are building a report. Here's a link to an article that explains how to hide an advice option.
How do I customise the surrounding wording in my reports?
Capacity for Loss is dealt with within the Recommended Investment Strategy section within Genovo. The advice option(s) you select in the Capacity for Loss step of the Investment Strategy section will be rendered as bullet points within the {IS_CFLText} tag contained within the ATR & Capacity for Loss snippet of the Recommended Investment Strategy section. The surrounding wording that gets inserted in your reports is show below:
"Your capacity for loss is summarised below:
{IS_CFLText}
Please contact me immediately if you do not understand the potential risks associated with the agreed risk profile or you do not believe the above accurately reflects your attitude to risk and capacity for loss as this may affect my advice."
As with any of the boilerplate text used in Genovo, you can edit the surrounding wording via customisation>report content manager. You'll find everything you need to know about the Report Content Manager in our Knowledge Base or by clicking on the link below.
http://support.genovo.co.uk/support/solutions/folders/43000155292