On-boarding

Paolo Sironi and Maurizio Ravezzi

This chapter describes the on-boarding phase, addressing the strategic importance of profiling investors and their wealth with a goal-based perspective. Regulation (MiFID II and Priips) is a constraint but also a key engine fostering the transformation of financial advice, since it urges intermediaries to provide clear analysis of costs and potential benefits of investment decisions. In this chapter we try to resolve the dichotomy between Product Governance and Suitability Framework, and help reconcile the requirement for a unique profiling notwithstanding the existence of a plurality of personal needs and goals.

INTRODUCTION

The separation between on-boarding and in-boarding allows the creation of a transparent advisory dialogue because it helps to distinguish between the opinions of investors (who demand advice) and those of their advisers (who offer advice). During in-boarding, financial advisers select forward-looking market opinions of investment professionals to hedge their clients’ investment objective defined during the on-boarding phase. Taming the markets is not an easy task, which is why anti-fragile diversity can add value during the timeline control of investments