Topic 20 Addressing the client’s needs Flashcards
- What is the normal order of priority for financial needs?
In order from highest to lowest priority, the normal sequence is: current needs; protection (death or serious illness); income protection; pensions; savings; investment.
- Alan’s client, Themba, stated that he was not interested in life assurance at thefact find meeting. Alan’s analysis shows that there is a significant weakness in thatarea of Themba’s financial provision. What should Alan do?
Even though Themba stated he was not interested in that area, giving advice means pointing out the situation to Themba and documenting the conversation.
- What are the key points that would be covered in a presentation meeting?
The key points covered in a presentation meeting would be as follows. A summary of the previous discussions, outlining the client’s personal situation and details; financial details, including income and expenditure, assets, etc; needs and objectives. A detailed analysis of each of the areas of concern, including any gaps in provision and the amounts required to fill those gaps. Issues that arose from the analysis that were not covered at the previous meeting, or areas that were not of concern to the client but the adviser felt should be discussed. The recommended solution to each of the problems identified, including sufficient detail about each element of the solution to enable the client to understand how it will address the problem, how they will benefit and any other information they will need in order to make an informed decision. Technical information that the client needs to know – charges, penalties, taxation and so on. What to do about issues that could not be addressed due to budget constraints or other factors. This would normally involve agreement to a review meeting at some future point, where the issues would form a key part of the agenda.
- What are the key steps in handling clients’ objections?
The key steps in handling objections are as follows. Listen to what the client is saying. Acknowledge the objection. Probe or isolate the problem. Answer the objection. Confirm that the client is happy with the response and is happy to move on
- What is the purpose of the key features document and client specific illustrationthat must be presented prior to a sale?
The key features document and client specific illustration are designed to provide the client with the key information needed to make an informed decision and to help them to confirm they are making the right decision.
- Isaac has just signed an application for a unit trust investment. When must hisadviser send a suitability report?
The suitability report must be issued as soon as possible after the sale, but no later than the issue of the statutory cancellation notice.
- What would the suitability report typically contain?
Typical content of the report would include: what was discussed – an overview of the customer’s situation; the customer’s needs, objectives and priorities as discussed; the product recommended; why the product is suitable for the customer’s needs.
- In Isaac’s case, what would happen if he returned the statutory cancellation notice?
If Isaac returned the notice, he would receive the lower of his original investment or the market value of the units.
- Detailed records of sales must be kept. Complete the following table.
- What are the three key elements in an adviser’s ability to apply technical knowledge to client situations?
The three key elements in an adviser’s ability to apply technical knowledge to client situations are to: analyse what parts of the information the client needs to know; decide the best way to present that information to the client; anticipate as many of the questions the client is likely to ask as possible and prepare answers.
