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You love getting to know clients but, chances are, you’re less enthusiastic about assessing their risk tolerances.

These days, there’s a lot of ground to cover during initial meetings–from explaining your services and fees, to providing financial education–so what’s the best way to assess risk tolerance? And, how long should the exercise take?

Read: Rethink risk tolerance questionnaires

At a CFA Society Toronto luncheon, three experts tackled this topic. They shared how they assess and discuss risk with clients, and outlined which issues are important to consider. The experts were: Don Cranston, founder and portfolio manager at CGOV Asset Management in Toronto; Philip Doyle, investment counsellor at Burgundy Asset Management in Toronto; and Brad Simpson, chief wealth strategist at TD Wealth in Toronto.

One thing’s for sure: however you choose to assess the risk tolerance of clients, make sure your process is consistent across your book. And, know your limitations when it comes to how aggressively a client wants to invest as well as how involved and communicative they want to be.

See our live tweets below, and read the following articles, for tips on assessing (and even re-assessing) a client’s tolerance.

Educate clients on risk of loss, OSC roundtable urges

Interested in leveraged strategies? Be cautious

Don’t miss important compliance reminders

KY(A)C: Know your (affluent) client

6 steps to more responsive asset allocation

Originally published on Advisor.ca
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