Financial Planning

Question 1

Investment Statement should cover…

Answer 1

• Purpose of the investment
• Income or Growth objectives
• Statement about Julie’s risk profile
• Statement about asset allocation
• Other issues (ethical/socially responsible investing)

Question 2

ISO 22222

Answer 2

• Define and establish the adviser/client relationship
• Gather client data and establish client goals and objectives
• Analyse and evaluate client financial status
• Develop and present the financial plan
• Implement financial planning recommendations
• Monitor and review plan and relationship

Question 3

Investment Process

Answer 3

• Establish goals and objectives (timeline, growth, income, cap 4 loss, ATR, experience)
• Understand the client status (tax)
• Purpose, objective and risk statement
• Asset Allocation
• Fund/stock selection
• Implementation (buy, monitor, rebalance)

Question 4

Benefits of using IFA

Answer 4

• ID problems and goals
• Gets planning done
• Avoids common mistakes
• Regulated by FCA
• Research and investigation
• ID financial strategies
• Setting priorities
• Making/preserving wealth

Question 5

British International Standards

Answer 5

Transparency
Disclosure
Integrity
Due care and dilligence
Accessibility
Confidentiality
Professionalism
Conflicts of Interest
Competence

Question 6

Review Triggers

Answer 6

• Death/incapacity of Peter
• Winding up of Peter’s company/sale of Peter’s company
• Maintenance payments stopping
• Ill health/incapacity of Julie
• Redundancy/ Julie stopping work/DIS ending
• Julie finding a new partner/re-marriage
• Bankruptcy
• Change in taxation/legislation/emergency budgets
• Change of Julie’s objectives
• When Noah reaches 18 / when both boys reach 18
• When passing shareholdings to boys when Noah is 18
• Receipt of an inheritance
• Change in major expenditure requirements
• Severe market turmoil/good market conditions/take profits