Advise And Review Flashcards
Advisor process
R-FRED-DAR
Relationship - cost/scope of practice
Fact-find (goals/objectives)
Risk and capacity for loss
Evaluate current/future finances
Develop and research plan
Discuss plan and documentation (KID/sutability)
Agree and implement
Review
Advisor process for pensions
R-FRED-DAR
Relationship - cost/scope of practice
Fact-find (goals/objectives)
Risk and capacity for loss
Evaluate current/future finances
-state pension forecast
-gaps that can be plugged
Develop and research plan
Discuss plan and documentation (KID/sutability)
Agree and implement
Review
Reasons for review
CLICR
Cicumstances change (finacial/death/ATR/objectives)
Legislation/economy/tax
Investment performance monitoring
Costs/charges/cheaper products
Rebalance/change funds
What is the process for reviewing a clients investments
Letter of authority/obtain details
Confirm date of purchase
Confirm base costs/further investments/withdrawls/switches
Identify any reinvested income
Calculate gain
Assess asset allocation
Identify suitable benchmark
Compare benchmark
Review charges
Compare to risk-free return
Review risk rating on fund
Access funds against ATR and capacity for loss
What are the advantages of receiving advice
It’s good to advise on your ABCs
Access Attitude for risk and capacity for loss
Advise against bad practice
Budget and cash flow modelling
Benefit from advisors’ research
Circumstances of client shape recommendations
Determine sutability of existing arrangements
Explain clearly
Find an effective tax plan
onGoing service
Higher consumer protection
Identify goals and objectives
What process would an advisor follow when providing investment advice?
Establish goals, expectations, and timelines
Need for income or growth
Confirm attitude for risk
Confirm capacity for loss
Levels of emergency funds are required
Establish current and future tax postion
Full details of existing investments
ESG views
Establish an appropriate asset allocation
Select appropriate funds for new money and switches
Allocate tax
Implement, monitor, review
What are the best practices for KYC
Take account of future goals and aspirations in future plans
Assess current circumstances against these over time
Extensive information gathered and checked at least biannualy
Recognise different attitude to risk of couples
Discuss and record all existing plans in place and build them into recomendations wherever possible
What are the 3 methods of fee charging
Fund based/percentage of assets
Time based
Fixed
