9 - Client Advising Skills

Question 1

What details does a fact find include

13

Answer 1

Basic Details - state of health (life assurances)
Family details
Employment Details
Other Professional advisors
Income and expenditure
Assets
Liabilities
Life Insurance
Health Insurance
Regular Savings
Pension details
Inheritances
Attitude to risk

Question 2

Five key demand and needs

Answer 2

1. Protection
2. Income Protection
3. Pensions
4. Savings
5. Investment

Question 3

How is it recommended to document discovery and analysis of client needs

Answer 3

Questionnaire

Question 4

What should you do when discussing demands and needs

4 steps

Answer 4

identified;
discussed;
quantified; and
prioritised.

Question 5

Before Assessing demands what needs to be done

Answer 5

Understand attitude to risk

Question 6

What 9 areas of suitability do you need to address when making a recommendation

Answer 6

1. Tax
2. State benefits
3. Demand and needs
4. Objectives
5. Affordability
6. Term of product
7. Investment risk
8. Sustainable and responsible investment
9. Risk warning

Question 7

Oral Report

Answer 7

Pros and cons - two way conversations

Question 8

Written Report Guidelines

Answer 8

NO jargon
Sentences short
Logical Sections
Balanced view

Question 9

What is in a suitability report form?

Answer 9

1. Names and finacial situation
2. Specify demand and needs
3. Any needs not covered and reason
4. Formal reccomendations (cost)
5. Reason why provider was chosen
6. Risk profile
7. Summary