3. Determining Client Needs

Question 0

What implications does a client’s age have on their asset location strategy?

Answer 0

It shows their stage in life - E.g. saving for retirement/pension, or a particular liability/obligation - e.g. Children’s university fees

It also gives an indication of their potential viewpoint on long-term investments

Question 1

What are the five stages of the financial planning process?

Answer 1

1. Determining the client’s requirements
2. Formulating the strategy to meet the client’s objectives
3. Implementing the strategy by selecting suitable products
4. Revisiting the recommended investments to ensure they continue to meet the client’s needs
5. Periodically revisiting the client’s objectives and revising the strategy and products held, if needed

Question 2

What is a blind trust?

Answer 2

Where all trust in asset allocation is left to the financial advisor - such arrangements happen where the client is a politician or is in the public spotlight and does not want to be seen as exploiting their position or knowledge. The client is kept deliberately unaware of trading decisions or their rationale.