RO1 - S.8 - skills required when advising clients

Question 1

How should firms communicate with clients according to COBS 4.2?

Answer 1

In a way that is fair, clear and not misleading

Question 2

what 2 pieces of documentation should a client receive if they take out a general insurance product?

Answer 2

Key features document (KFD) & demands + needs documents outlining recommendations

Question 3

what 2 pieces of documentation should a client receive if they take out a general insurance product?

Answer 3

Key Investor Information Document (KIID) & Suitability report

Question 4

Which regulation stipulates that a firm needs to take reasonable care to ensure the suitability of its advice?

Answer 4

COBS 5.2

Question 5

Which regulation stipulates that a firm needs to take reasonable steps to make sure the recommendation is suitable for the client?

Answer 5

COBS 9.2

Question 6

Which acronym is used to establish a client’s financial planning priorities?

Answer 6

PIPSI

Question 7

What does the acronym ‘PIPSI’ stand for?

Answer 7

P – Protection (critical illness, death protection)
I - Income Protection – Cover for incapacity to work
P -Pensions - Retirement and later life planning
S - Savings –
I - Investments

Question 8

What is a client’s ATR?

Answer 8

The client’s Attitude to Risk

Question 9

What type of questions should be used to establish facts from clients?

Answer 9

Closed ended questions

Question 10

What type of questions should be used to establish objectives from clients?

Answer 10

Open ended questions