At the licensee level, advice firms can set custom assumptions that will impact all advisers across the firm.
| Advice group settings | Features | Relevance |
|---|---|---|
| Constraints | A licensee can determine what assumptions they want to insert into the model as a constraint. This includes things such as max leverage ratios, diversification requirements etc. Constraints can be applied per risk profile or per lifecycle. | These constraints ensure advice recommendations are consistent with in-house rules. |
| Asset class assumptions | Set risk and return assumptions per asset class | PrimeSolve performs a range of Monte Carlo simulations to provide a detailed probability analysis. The risk and return assumptions are used within the simulation and will impact the range of possible outcomes. |
| Correlation matrix | Set correlation matrix across available asset classes | The correlation matrix is applied across each asset class and used within the simulation to determine a realistic probability analysis. |
| Default Risk Profile | Establish custom risk profile questionnaire | This allows the advisory firm to insert their own risk profile questionnaire. This would not be necessary for firms that are happy to use an alternative method such as FinMetrica. |
| Economic stress test settings | Allows advisory firm to insert probability analysis across a range of economic events that reflect their in-house economic views. | By allowing advisory firms to insert their own bias around the likelihood of market events occurring, the risk/return assumptions the are used to generate probability analysis can be customised to accurately reflect the prevailing market views of the advice firm. |
| Scaled advice settings | Allows licensee to set constraints over when it is appropriate to consider scaled or limited advice as opposed to a full Statement of Advice solution. | Allows advice firm to set constraints, over when it is appropriate to consider scaled or limited advice as opposed to a full Statement of Advice solution. |
| SOA builder | Allows licensee to design their own strategies. This is done by selecting an output template, identifying necessary inputs, specifying the desired calculations and required outputs from the graph and table library. | The SOA builder enables advisory firms to design their own content. |
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