Financial Advice Processes – Client reviews

Question 1

Identify the key issues that a financial adviser should discuss with Joshua and Amina at their next annual review. (9 points)

Answer 1

• Has Joshua made a decision on his business structure?
• Changes in circumstances/any further children.
• Mortgage repayment/refinancing plans.
• ATR/CFL.
• Asset allocation/performance/benchmark/do holdings still align with ethical values.
• Charges.
• Protection provision.
• Use of ISA allowance/pension contributions.
• Changes in legislation/tax rates/products available/economic conditions/interest rates.

Question 2

Explain to Joshua and Amina why it is important for them to regularly review their retirement provision. (11 points)

Answer 2

• Check growth/performance/benchmark.
• Review retirement needs/check they are on target.
• Review charges/new or alternative products.
• Tax position/unused allowances/tax efficiency.
• Market conditions/inflation/economic conditions.
• Income/capital available from other sources/inheritances received.
• Potential to increase contributions.
• Review retirement date/check target date remains appropriate.
• Review ATR/CFL.
• Changes to health/family situation.
• Changes to legislation/pension legislation