Topic 9

Question 1

Why is there a need for financial advice?

Answer 1

To help make an informed choice when making financial decisions

Question 2

What are the elements of the process of making a financial decision?

Answer 2

• Own needs, wants and aspirations
• Solutions & providers available
• Highlight any special risks

Question 3

What are some ways people can obtain information directly from the provider?

Answer 3

• Marketing brochures & leaflets
• Provider websites
• TV and radio advertisements
• Provider staffs

Question 4

What is money box?

Answer 4

• A programme on BBC Radio 4
• It gives the latest news from the world of finance & advice for those trying to make the most of their money

Question 5

What does money box do?

Answer 5

• Identity problems with specific products
• Warn listeners against scams

Question 6

What do price comparison websites do?

Answer 6

Enable customers to compare financial products more easily

Question 7

Advantages of price comparison websites

Answer 7

• Helps make informed choices
• Contains “best buy” tables

Question 8

Disadvantages of price comparison websites

Answer 8

Not all websites are reliable

Question 9

What is the Money Advice Service?

Answer 9

Provides free, impartial advice on money & financial decisions

Question 10

What are some services offered by the Money Advice Service?

Answer 10

• Money Health Check
• Financial education & information
• Debt advice

Question 11

What is the Money Health Check?

Answer 11

It looks at a persons overall financial position

Question 12

What is Financial education and information?

Answer 12

Has the responsibility for financial education

Question 13

What are the aims of the Financial Conduct Authority?

Answer 13

• Protect consumers
• Ensure the financial services industry stays stable
• Promote healthy competition (between financial services providers)

Question 14

What is the aim of the competition and markets authority?

Answer 14

To make markets work well for consumers

Question 15

How do the competition and markets authority achieve their aim?

Answer 15

By promoting & protecting consumers interests while ensuring businesses are fair & competitive

Question 16

What are some features of Citizens Advice?

Answer 16

• Free, impartial advice
• Confidental
• Independent

Question 17

What are the steps to a debt free future?

Answer 17

• Decide to get debt help
• Accsess debt advice
• Use the practical solution that works best for them

Question 18

What is the National Debtline?

Answer 18

The national telephone helpline for people struggling with debt problems

Question 19

What are the features of the National Debtline?

Answer 19

• Free service
• Independent
• Confidential

Question 20

What do the Independent financial advisors offer?

Answer 20

A broad & comprehensive range of retail investment products

Question 21

What are some features of the Independent financial advisors?

Answer 21

• Gives consumers unbiased & unrestricted advice
• Tells consumers that they are independent advisors

Question 22

What can Restricted advisors do?

Answer 22

They can only recommend certain types of products (from one or a limited number of providers)

Question 23

Can restricted advisors state they’re independent?

Answer 23

No.

Question 24

What is a limitation of using family & peers as a source of advice?

Answer 24

It is not reliable