Topic 14 Flashcards
Understanding and satisfying customer needs
Which of the following could be described as ‘proactive servicing’?
a. A letter to a client asking the reason for non-payment of three premiums.
b. A telephone call to a client to arrange a pre-agreed review following a salary increase.
c. A letter to a client who is querying the charges on his unit trust.
d. A telephone call to a client’s wife who has provided notification of her husband’s death.
b. A telephone call to a client to arrange a pre-agreed review following a salary increase.
Which of the following would be regarded as a form of reactive servicing?
A financial adviser contacting a client to:
a. arrange an annual review of their financial circumstances.
b. ascertain if anything material has changed since the last review.
c. find out why they have recently missed a life policy premium.
d. inform them about a new product that may interest them.
c. find out why they have recently missed a life policy premium.
Once an adviser has completed a factfind in respect of a client, which of the following is a fundamental consideration that should always be taken into account before making an investment recommendation?
a. Attitude to risk.
b. Employment details.
c. Mortgage arrangements.
d. Number of dependants.
a. Attitude to risk.
Which of the following needs would typically be the primary financial priority for a married couple with a young family?
a. Upsizing to a larger property.
b. Investment advice.
c. Life and income protection.
d. School fees provision.
c. Life and income protection.
Brian is reviewing a range of investment products before selecting the most appropriate solution for his client, Claire.
Which factor is Brian least likely to take into account when selecting an appropriate solution?
a. Claire’s desire to access her investments in five years to purchase a property in Portugal.
b. Claire’s existing portfolio of investment products.
c. The fact that she has recently moved into a higher-rate tax bracket.
d. The possibility of Claire getting married in the future and having children.
d. The possibility of Claire getting married in the future and having children.
While exact financial needs will vary from person to person, it is possible to identify typical needs based on a person’s:
a. employment history.
b. financial liabilities.
c. income.
d. life stage.
d. life stage.
Melvin, a financial adviser, is discussing a client’s investments and wishes to obtain some soft facts.
Which of the following questions is least likely to help him to obtain such information?
a. How do you feel about the recent performance of your investments?
b. How much do you currently have in your building society accounts?
c. What are your goals for the next five years?
d. What are your views about the state of the economy?
b. How much do you currently have in your building society accounts?
An investor’s ability to absorb falls in the value of their investment is typically known as their:
a. attitude to inflation risk.
b. capacity for loss.
c. investment capacity.
d. risk appetite.
b. capacity for loss.
Which of the following is not typically a financial priority of a retired individual?
a. Building up a capital reserve.
b. Inheritance tax planning.
c. Long-term care provision.
d. Generating income to maintain their standard of living.
a. Building up a capital reserve.
Which piece of information about Alice represents a ‘hard’ fact?
a. Her investment portfolio has performed below her expectations.
b. Her savings account balance has fallen to £5,000.
c. She hopes to retire by the age of 60.
d. She wishes to be financially secure when she retires.
b. Her savings account balance has fallen to £5,000.
A complaint against an independent financial adviser is likely to be upheld if:
a. the cancellation notice was sent by the provider.
b. the product illustration had been prepared in advance by the product provider.
c. their business card failed to mention their qualifications.
d. they failed to provide a key features document before a sale was closed.
d. they failed to provide a key features document before a sale was closed.
What is the advantage of explaining both features and benefits when making a product presentation to a client?
It:
a. enables the adviser to focus on the sale rather than the client queries.
b. ensures that all point-of-sale FCA regulatory requirements are met.
c. enables the client to better understand how the product will meet their needs.
d. ensures that the client understands the cancellation rights offered by the product.
c. enables the client to better understand how the product will meet their needs.
