topic 14 - understanding & satisfying customer needs

Question 1

Proactive servicing

Answer 1

Involves investigating action by contacting the client to discuss further needs

Question 2

Reactive servicing

Answer 2

as the result of a request from the client. Client’s circumstances might change unexpectedly, resulting in a request for advice

Question 3

factors that an adviser might take into account when deciding on an appropriate solution for a client:

Answer 3

• Eligibility for state benefit
• existing arrangements
• affordability
• taxation
• attitude to risk
• capacity for loss
• anticipated changes in circumstances
• timescale
• flexibility

Question 4

Retention of records for MiFID-related business

Answer 4

5 years

Question 5

Retention of records for pension transfers and opt-outs

Answer 5

indefinite

Question 6

Retention of records for life policies and pension contracts

Answer 6

5 years

Question 7

Retention of records for mortgage related contracts

Answer 7

3 years