Giving Advice Flashcards
What are the key principles of ethical advice?
FF S ER PA NP
FF S ER PA NP
Find out all relevant facts about the client
Construct solutions that meet the clients needs and match their attitude to risk ensuring there is evidence to support the suitability of the advice
Explain the recommendations in a language the client can understand
Proceed with the application only when it’s clear that the client fully understands what is being proposed
Ensure no pressure is placed on the client during the process
List the factors that need to be considered when establishing clear goals and objectives for the client?
NC,I,B MA R OR A PC
The need for income capital or both
The minimum amount required and the minimum amount that would be acceptable for the client
The reason for the need for example essential or aspirational spending
Other resources that could be used
The client attitude to losing ownership of some or all of the property or accumulating debt against it
The clients attitude towards leaving an inheritance for the children
Any potential changes required to the plan in the future
How are the interests of equity release customers protected?
Regulated by the FCA and customers have recourse to the financial services ombudsman and the financial services compensation scheme
Whether the provider is a member of the equity release council they agree to follow it standards and principles which include no negative equity guaranteed and a requirement for the customer solicitor certificate confirming the implications of the plan have been explained to the customer
A single person may get more guaranteed credit than the standard minimum if they receive additional benefits that cover which of the following?
A) a severe disability
B) Housing costs
C) Caring costs
D) Redundancy
A,B&C
Having reviewed your clients income, savings and investments you feel it is likely they are eligible for further state benefits which may be a more suitable way of raising additional income for them than equity release. You’re not entirely confident that you know what these benefits are exactly and how much they’re likely to receive what should you do next?
You should recommend that the client seeks advice for an appropriate organisation such as citizens advice
the department for work and pensions
Or their local authority
How does a deferred payment agreement work?
Under a deferred payment agreement the homeowner who needs to enter a care home does not have to sell the home immediately to pay the care home fees instead the local authority will pay the care bill on the homeowners behalf. The money is then we paid when the home is sold either on death or earlier if that’s the homeowner’s choice.
If an annuity has been purchased with the proceeds of an equity release plan, why would consideration have been given to the clients state of health?
Those in poor health and seeking income would have been well advised to consider an enhanced or impaired life annuity available with those with health problems that could affect life expectancy.
Such annuities offered significant increases over standard annuities even for controlled illnesses. enhanced rates were also available to smokers ?
When should a complaint be made to the financial ombudsman service?
Complaints to the financial ombudsman service must be made within six months of receiving a final response from the authorised firm involved,
within six years of the event that gives rise to the complaint or within three years of the time when the complainant should have become aware that they had a cause for complaint which ever is the latter.
On August 7 2018 Lena reached state pension age, she is single, is she entitled to savings credit?
No. the savings credit element of the pensions credit has closed for people reaching state pension age on or after the 6th of April 2016.
Although some couples may still be able to claim if one of them reached state pension age before that date.
What is the advice process?
Fact find
Research
Present
Implement
What is the complaint handling process?
A I R I A P
A I R I A P
Acknowledge - acknowledge receipt of a complaint promptly in writing
Investigate - ensure complaints are investigated by a person of sufficient competence who were ever possible was not directly involved in the matter under complaint
Resolve aim to resolve complaints promptly within eight weeks
Inform - keep the complainant up-to-date on progress
Advise - advise the customer that they can refer the matter to the financial ombudsman service where a resolution cannot be found within eight weeks
Provide - provide the complainant with a financial response letter which must adequately address the subject matter of the complaint and notify complainant of their right to approach the financial service ombudsman service within six months of the date of the letter if they’re not satisfied
