Three in 10 (29%) of clients say that their wealth managers may have incorrectly assessed their attitude to investment risk.

The findings suggest many clients are concerned they were wrongly assessed on how much investment risk they are willing to take.

A survey of 167 people who have taken professional advice on their investments over the past five years found that 29% were “not convinced” their wealth manager correctly understood their attitude towards investment risk.

The research, commissioned by behavioural finance specialists Oxford Risk, found that only 69% of retail investors who have used wealth managers felt their advisers used effective fact-finding methods to understand the investment needs and financial circumstances.

One in 20 felt advisers were “ineffective” in assessing risk and one in four (26%) were unsure about their adviser’s effectiveness.

On the more positive side, more than three-quarters (77%) of retail investors interviewed who have used a financial adviser over the past five years said they felt the advice received was tailored to them - 6% said it was not and 17% were unsure. 

Some 77% said the advice received from their wealth manager had been consistent over time with just 3% disagreeing and 19% saying they did not know.      

Greg Davies, head of behavioural finance at Oxford Risk, said: “It is encouraging to see so many clients of wealth managers happy with the service they are receiving, but our findings reveal a significant minority who feel it could be improved.  

“As clients become more demanding in terms of service levels and quality of advice, wealth managers need to embrace technology to meet these needs.”   

Oxford Risk is a supporter of behavioural profiling to assess client attitudes to investment risk.

• Research was conducted by Consumer Intelligence among 1,036 adults aged 18-plus in August.