Documents Flashcards
What documents should the adviser serve the client? (5)
-Suitability Report
-KFD
-Illustration/projection/quote
-(If WP Product) Principles & Practises of Financial Management booklet
-Application Form
What is contained within the KFD?
Aims
Risks
Costs
Tax impications
Cancellation rights
ARCTC
What is contained with the illiustration?
Projection of growth based upon reasonable assumptions
Charges
How can the application form be filled out?
By customer
By adviser (client must be present, sign an agreement to allow & read through and sign
Why is a PPFM required for WP products?
As charges are taken out before bonuses are paid. Theres not much transparency
The client can see how the WP product is structured
When is a CF PPFM given? (Customer friendly Financial Management of with profits funds) (3)
-At point of sale
-Annually
-If there is changes
When is a suitability report provided?
When client buys, sells, cancels, suspends premiums
What is contained with the suitability report? (5)
Advantages/disadvantages of recommendation/drawbacks
Risks associated with recommendation
What need is being addressed
List of suitable products and most suitable
Indication that past performance does not guarantee future performance
What is a letter of authority and when would it be served?
It allows an adviser to correspond with third parties on your behalf
What documentation is used in the gathering client data/goals/expectations stage of the planning process (6)
-SCDD
-letters of authority
-calculations (tax, shortfall, future value of investments
-cash flow modelling
-valuation of assets/policies/inv/property
-suitability report (what, why, consequences/risks)
When can an application form be completed by an adviser? (3)
When client present
Client reads through and signs
Or
Client signs agreement to allow adviser to do it
