BrandFT Set 1 Flashcards
Model Answers
Explain the difference between direct and indirect supervision.
(4)
Direct
* High level of supervision
* Likely appropriate for trainee advisers
Indirect
* Applies to advisers classified as competent
* Must be sufficient to maintain a clear indication of quality of adviser’s work
State four key ways a manager can benefit an organisation.
(4)
- Supporting the Consumer Duty requirements by delivering good customer outcomes
- Help to meet FCA requirements and manage risk
- Manage people so that resources are focused on delivering the needs of customers and the business
- Manage information and take any relevant steps
State three examples of when an adviser may fall under direct supervision.
(3)
- In cases of under-performance, especially if well below the required standard
- Where new advice areas, systems or procedures are introduced, even if they are
an experienced adviser - Returning to the role after a period of absence
List eight typical activities of a manager.
(8)
- Workplace coaching
- Performance management
- Providing feedback
- Demonstrating/modelling best practice
- Briefings
- Training
- Team meetings
- Collating and/or assessing relevant MI
- Budgeting
- Monitoring performance standards
- Contributing to a positive work culture
Identify four assumptions that Douglas McGregor identified about human nature in each of his leadership theories:
Theory Y
(4)
Theory Y assumptions
* Work is as natural as play
* Self-control is often indispensable in achieving organisational objectives
* People have the creativity to solve organisational issues
* People are self-motivated to complete their tasks
* People can be self-directed if properly motivated
Identify four assumptions that Douglas McGregor identified about human nature in each of his leadership theories:
Theory X
(4)
Theory X assumptions
* Work is inherently distasteful
* Most people are not ambitious
* People have little capacity for creativity in solving organisational problems
* People are motivated by using anxiety and their security
* People need to be closely controlled and coerced to achieve goals
Explain the key differences between Theory X and Theory Y.
(5)
Theory X is the opposite of Theory Y.
* Theory X represents a pessimistic outlook towards employees and
* Focuses on a need for supervision, tight control and rewards or punishment.
* Theory Y reflects a positive outlook towards employees and
* Focuses on the belief that employees with greater responsibility and proper encouragement will be self-motivated and able to achieve their own and organisational objectives
State the three key drivers of training needs.
(3)
- Environmental factors (external to the business)
- Organisational issues (internal to the business)
- Individual issues (apply to one person but not another)
State and explain the five basic needs that Abraham Maslow identified in his
hierarchy of needs.
(10)
Physiological
* basic human needs to sustain life, e.g., food, shelter, clothing etc.
Security and safety
* job security, good working conditions, insurance and enough
savings
Social
* belonging and acceptance as part of a group
Self-esteem
* seeking the esteem and respect of others to result in an inner sense of achievement
Self-actualisation
* the desire to become what one is capable of becoming
List the benefits of ongoing Training Needs Analysis for both individuals and the business as a whole.
(9)
Individuals
* Avoids knee-jerk responses and too much at once
* Gives structured development
* Needs are identified that might otherwise not have been
* Training more likely to be relevant
Business
* Needs are identified systematically so that more thorough and cost-effective
* An easily managed process
* Changes may be identified from the business plan
* Avoids knee-jerk responses
* Training is identified as the correct solution only when appropriate to the needs
Kevin has been asked to shadow an experienced member of the team as part of his training as a financial adviser.
Identify three advantages and three disadvantages of this approach as an
effective method of training.
(6)
Advantages
* Easy to organise
* Demonstrates use of correct model of behaviour
* Shows how the process works in a real-life situation
* Encourages a collaborative culture
Disadvantages
* Can introduce / spread bad habits if incorrect modelling adopted
* Can take up valuable time of experienced team member
* Will normally require more than one demonstration to be effective in satisfying
* training requirements for new team member
State the two key aims of the supervisor when adopting the GROW model of coaching.
(2)
- Increase the individual’s awareness of current performance and potential
- Build the individual’s responsibility for taking ownership of the actions
List and explain the stages of the GROW coaching model.
(8)
Goal:
* Identify what the objective is / what is to be achieved.
Reality:
* Identify and understand the real issue / clarify the perception of the situation.
Options:
* Identify and explore the choices available to achieve the goal.
Will:
* Coachee must have the will to make changes required - need to agree the way
forward / secure a commitment to achieve the goal.
List the FCA mandatory requirements that need to be demonstrated by all retail investment advisers during the advice process.
(4)
- Disclosure of status, services, and costs
- Establishing ‘know your customer’ requirements
- Product or service disclosure
- Cancellation rights and money laundering
State where the mandatory behaviour requirements for investment advisers are set out.
(1)
FCA Conduct of Business Sourcebook (COBS)
