Review

Question 1

Events that trigger a review 10 marks

Answer 1

Changes to:

• financial circumstances
• personal circumstances (divorce/death/new grandchild
• atr
• capacity for loss
• ISA/CGT allowances to use
• income needs
• levels of gifting
• purchase of holiday home
• wills or nomination of pension funds
• unexpected windfall/inheritances
• health
• legislation
• adverse market conditions / fall in value of assets

Question 2

Areas to address at review

10 marks

Answer 2

Changes to:
- financial circumstances 
- personal circumstances (divorce/death/new grandchild
- atr 
- capacity for loss
- ISA/CGT allowances to use
- income needs
- levels of gifting
- purchase of holiday home
- wills or nomination of pension funds
- unexpected windfall/inheritances
-health
-legislation
- adverse market conditions / fall in value of assets
-performance against benchmark 
- new products available
- additional funds to invest
-

Question 3

Reasons for regular reviews

6 marks

Answer 3

Advisor can react to:

• changes in personal circumstances
• changes in financial circumstances
• changes in legislation
• advise on new products
• ensure both use isa and CGT, gifting allowances
• allows rebalancing if change in atr or CFL
• ensures advice remains suitable
• builds long term relationships
• answer David and June’s further questions

Question 4

Six issues when reviewing David’s SIPP 6 marks

Answer 4

1) investment performance against an agreed benchmark
2) changes in economic/market conditions
3) changes in pension regulations / legislation
4) Charges compared to other SIPP providers in the market
5) level of income and lump sums needed to be withdrawn from the SIPP over next 12 months
6) nomination forms completed/updated as required

Question 5

Issues to be considered when reviewing investment David and June’s investment portfolio
8 marks

Answer 5

1) performance against an agreed benchmark
2) any changes to levels of income they need/wish to take from the portfolio
3) changes to atr or cfl
4) changes in personal circumstances e.g. health/divorce/grandchildren
5) new funds to invest/ funds after buying holiday home and gift to Karen
6) economic/market condition changes
7) changes in legislation
8) new products available
9) use of all tax allowances and exemptions