RO1: Chapter 9

Question 1

What are fact-finds used for?

Answer 1

Used to gather information on demands, needs and objectives so that the adviser can recommend suitable products to meet clients’ goals.

Question 2

If a client does not provide full details on a section of the fact-find?

Answer 2

The adviser should record this in the fact-find

Question 3

What are the 3 sections to a fact-find?

Answer 3

• Basic Information (Basic information such as address, name, and relationship status. Family details, employment details)
• Financial details (Assess current financial situation, assets, liabilities, debts, savings, pensions, income, and expenditure)
• Planning & objectives details (Existing arrangements, financial objectives, other advisers)

Question 4

What does PIPSI stand for?

Answer 4

Protection, Income, Pensions, Savings and Investments

Question 5

What guidelines must be followed when putting together a suitability report?

Answer 5

• Language (easy to understand and technical terms must be explained)
• Sentences & paragraphs should be short, Headings and sub-headings should be used to break down the report into logical sections
• Must have a balanced view on product (not all positives!)

Question 6

What should be included in a suitability report?

Answer 6

Tax, state benefits, demands & needs, affordability, term of product, investment risk, ethical preferences, and risk warnings.