Non-Case Study Questions (Part B)

Question 1

More than two relevant factors, with a good description - 5 marks

Describe why a financial services customer might need qualified financial advice (5 Marks)

*A conclusion is not needed

Describe : Provide a detailed explanation of the main features of something and how and why something happens.

Answer 1

• To help achieve their wants and aspirations in the medium term and long term.
• Most people have only a general, limited understanding of personal financial
  products. People need advice and information before making a buying decision to
  help them to make an informed choice.
• Once they have chosen a product, they need to stay informed during the period
  they are using the product. They should seek updated advice every year to make
  sure that their financial plan is still on track and that their needs have not changed
  without them realising it.
• Some products can be complex and financial services customers need advice,
  sometimes specific, on certain products.
• It is never possible to know everything about a product and there is always an
  element of risk in every financial transaction. This is especially true where the
  product is complex.
• Without financial advice, some people may make a bad choice which can have
  unfortunate consequences