Risk tolerance needs to be assessed before financial planners provide advice on the suitability of investments. Previous studies have questioned whether investors risk tolerance remains stable over time or whether investor's perception of the risk attached to investments is the factor that varies. This study reviews the methods currently employed by UK Financial Planners following the guidance the UK Regulator published in 2011. The study was based on both online and paper based questionnaires

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... ompleted by Financial Planners and explores the method used and the planner's views on the stability of their clients risk tolerance and perceptions of risk over time. 56 sets of questionnaires were obtained and the data analysed using SPSS v21. The results showed that two proprietary psychometric based tests were most popular along with planners own in-house systems. The responses of the planners supported the theory that risk profile is a stable personality trait for most people and that their clients perceptions of risk are less stable.