Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

LIBF Unit 2 > Topic 9 - Sources of Info + Advice > Flashcards

Topic 9 - Sources of Info + Advice Flashcards

1
Q

Why do ppl need advice + info before making a buying decision?

A
  • to help make an informed choice
  • must stay informed during period they use product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What should ppl also take into account when making a buying decision?

A
  • factors that might change during period they’re using product (e.g. personal circumstances)
  • should seek updated advice every yr to ensure financial plan is still on track
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why can making a bad choice have unfortunate consequences when using a MT + LT product?

A
  • they’re relatively inflexible + ppl must know these facts before committing themselves
  • experience problems if don’t understand agreement they’re making
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 3 main elements ppl need to bring together before making a financial decision?

A
  • own needs, wants + aspirations
  • solutions + providers available
  • details of product brands
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What 3 things does a potential customer need to know?

A
  • themselves
  • solutions available + their providers
  • product brands
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does a potential customer need to know ab themselves?

A
  • present financial position; if they keep a monthly budget
  • aware of assets + liabilities they own
  • consider financial risks + how well protected they are from these risks
  • financial personality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What do potential customers need to know ab. product brands offered by various providers under each general heading?

A
  • benefits they may gain from them
  • costs + risks
  • extent of flexibility
  • service lvls
  • terms + conditions
  • degree they match w someone’s requirements
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What do financial services firms provide ppl w?

A
  • info + advice ab their own products but won’t recommend those of competitors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What must providers give prospective customers?

A
  • clear, relevant info that’s not misleading + highlights any special risks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What should a provider point out to the customer to try to ensure the product is suitable for the customer’s circumstances?

A
  • any costs, penalties or other obligations attached to product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the ways ppl can obtain info direct from providers?

A
  • marketing brochures + leaflets
  • provider websites
  • TV + radio adverts
  • provider staff
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How can ppl obtain info from marketing brochures + leaflets?

A
  • can go into branch of a bank/building society + pick up leaflets + brochures on product they want
  • through post
  • through telephone marketing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What do brochures + leaflets do?

A
  • gives details ab who product is intended for + how it works (in general sense)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What do provider websites contain?

A
  • info on wide range of products offered under various headingw
  • ways prospective customers can buy + manage products online
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What do most provider websites include?

A
  • a facility where ppl can email Qs
  • a helpline number so can discuss requirements or problems w a member of staff
  • usually have facility for prospective customers to make an application online
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are TV + radio adverts intended for + inc?

A
  • to mainly publicise provider’s name
  • don’t give lots of info
  • seek to build awareness of brand
  • terms + conditions always given at bottom of screen
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are 2 ways a customer can arrange an interview to discuss their financial needs w a member of staff?

A
  • at a branch
  • asking for a home visit
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is advised when customers ‘shop around’ by arranging interviews?

A
  • arrange interviews w representatives of several providers bc will only relate to products provided by own particular company
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Why is info available from the mass media unlikely to be aimed at making sales?

A
  • it doesn’t originate w providers
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the advantages and disadvantages of info from the media?

A
  • free
  • good source of info
  • unreliable (may be biased + incomplete)
  • don’t know if products being discussed are suitable for their needs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are the main types of media sources?

A
  • money box
  • newspapers
  • price comparison websites
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is Money Box?

A
  • a programme on BBC Radio 4 describing itself as giving ‘The latest news from the world of personal finance + advice for those trying to make the most of their money’
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does Money Box give info on?

A
  • financial products but doesn’t aim to market them
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a Money Box’s main purpose?

A
  • to identify problems that ppl might be having w particular products or to warn listeners against scams
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What do most of the UK’s national newspapers have?

A
  • a personal finance/money section in both paper versions + online website
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What does the personal finance/money section in UK National newspapers contain?

A
  • a selection of current stories on personal financial products + warnings against problems + scams
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Why have price comparison website been dev?

A
  • to enable customers to compare financial products more easily + so to make informed choices
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What do price comparison tables contain?

A
  • ‘best buy’ tables + quotation tools
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Why are customers still advised to spend time researching various products even after using price comparison websites?

A
  • bc comparison websites might not compare like w like
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What does price comparison websites often being ‘brokers’ for the products they inc. mean?

A
  • company running the website earns commission from financial services provider if ppl buy a product via its comparison site
  • may influence products a site inc + recommends
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Why are ppl advised to consult several price comparison websites before making a decision?

A
  • tend not to have a ‘whole of market’ focus so excludes certain products that may be more suitable for an individual than 1s listed
32
Q

What are the advantages of using price comparison websites?

A
  • consumers can access an at-a-glance list of products from diff providers + so helps to make a choice
  • consumers can get info on a number of providers w/o contacting each separately + so saves time
  • consumers can find ‘best buy’ tables
  • consumers can enter own specifications + find products to suit needs
33
Q

What are the disadvantages of price comparison websites?

A
  • not everyone has access to a computer + some ppl aren’t computer-literate
  • some aren’t reliable
  • gives headline details but consumers should read small print to find out terms + conditions
  • some are sponsored by specific providers who may push own products + not give impartial advice
34
Q

What is MoneyHelper?

A
  • an independent service originally set up under the Financial Services Act 2010 as the Consumer Financial Education Body
35
Q

What 3 older gov-backed services does MoneyHelper combine support + advice from?

A
  • Money Advice Service
  • Pension Wise
  • The Pensions Advisory Service
36
Q

What is MoneyHelper’s statuary objective?

A
  • to enhance understanding + knowledge of public ab. financial matters, inc. UK financial system, + to enhance ppl’s ability to manage own financial affairs
37
Q

What does a money or financial health check look at?

A
  • a persons overall financial position in relation to circumstances + aims to anticipate future events
38
Q

 What are the questions on money health check questionnaires ab?

A
  • various aspects of an individual’s finance attitudes + situation
39
Q

What are some examples of what the question in a money health check question are ab?

A
  • attitudes to managing money
  • age, marital status, work situation of themselves + partner
  • if they own home or have a mortgage
  • any ppl who financially depend on them or if they depend on someone
  • how far their money stretches
  • how far they rely on borrowing
  • if they have accessible savings
40
Q

What happens once someone completes a money health check questionnaire?

A
  • gets feedback in form of an action plan that’s broken down into steps to show what needs thinking ab + what can be done
41
Q

What does MoneyHelper have responsibility for?

A
  • financial education
42
Q

What are some topics that MoneyHelper gives info on?

A
  • different life events
  • everyday money + benefits
  • money topics
  • tools + resources
43
Q

What info does MoneyHelper give on the topic ‘different life events’?

A
  • advice on life events (inc. setting up home, having a baby, losing a job, divorce)
  • info ab. financial implications, legal position, how someone can go ab making financial plans to deal w it, financial products that may be useful + how they work
44
Q

What info does MoneyHelper give on the topic ‘everyday money + benefits’?

A
  • advice, tips + tools to help some1 get finances under control + to make money go further
  • inc. budgeting, reviewing or dec. borrowing, money-saving tips etc.
45
Q

What info does MoneyHelper give on the topic ‘money topics’?

A
  • sections on:
    • saving
    • investing
    • borrowing money
    • debt management
    • work
    • insurance
    • pensions
    • retirement
46
Q

What info does MoneyHelper give on the topic ‘tools + resources’?

A
  • inc:
    • calculators + budget planners
    • comparison tables
    • letter templates
    • action plans
    • blog ab financial news
47
Q

What is the aim of the FCA?

A
  • to protect consumers
  • to ensure that the financial services industry remains stable
  • to promote healthy competition between financial services providers
48
Q

What does the FCA website contain lots of info on?

A
  • main groups of financial products
  • how customers can protect themselves against bad products
  • mis-selling + scams
  • making complaints + receiving compensation
49
Q

What is the aim of the UK’s Competition + Markets Authority?

A
  • to make markets work well for consumers by promoting + protecting consumer interests while ensuring businesses are fair + competitive
50
Q

What does the Competition + Markets Authority contain info ab?

A
  • it’s announcements
  • consultations
  • publications
51
Q

What is citizens advice?

A
  • a registered charity + is the membership organisation for Citizens Advice Bureaux 
52
Q

Where does citizens advice deliver advice services from?

A
  • > 2500 community locations in England + Wales + is run by 280 individual charities
53
Q

What does Citizens Advice help to do?

A
  • resolve legal, money + other problems by providing free, independent, confidential + impartial advice on their rights + responsibilities
    • by influencing policy makers to improve policies + practices that affect ppl’s lives
54
Q

What do successful Citizens Advice campaigns from recent years inc?

A
  • promoting awareness of scams
  • improving customer service + choice for prepay energy customers
  • fair treatment for ppl using payday loans
  • changing law so customers can choose to cap mobile phone bills
  • a ban on letting agent fees for tenants
55
Q

What was StepChange Debt Charity formerly called?

A
  • the Consumer Credit Counselling Service
56
Q

What does StepChange Debt Charity provide?

A
  • free expert + impartial advice that ppl need when debts get out of control + suggests practical solutions
57
Q

What are the 3 steps StepChange sets out for a debt-free future?

A
  • decide to get debt help
  • access debt advice via its anonymous online Debt Remedy tool, or call telephone debt helpline + speak to an expert adviser
  • use practical solution that works for them
58
Q

What is National Debtline?

A
  • a national telephone helpline for ppl w debt problems in England, Wales + Scotland
59
Q

What does National Debtline do?

A
  • give specialist advice over telephone + discusses ppl’s options
  • free, confidential + independent service
60
Q

What does National Debtline’s debt advice inc?

A
  • a self-help pack
  • fact sheets
  • guides + review packs
  • a personal budget sheet
  • debt options
  • sample letters
61
Q

What are financial advisers?

A
  • ppl holding a qualification to give financial advice to customers
62
Q

What are the 2 headings financial advisers can be classed into?

A
  • independent
  • restricted
63
Q

What is the distinction between the 2 types of financial advisers covered by?

A
  • the Retail Distribution Review rules + are monitored + authorised by the FCA
64
Q

What do independent financial advisers provide?

A
  • independent advice that considers all types of retail investment product that may meet a client’s needs + objectives
65
Q

What must a financial provider do to be classes as independent?

A
  • offer a broad + comprehensive range of retail investment products
  • give consumers unbiased + unrestricted advice based on comprehensive + fair analysis of relevant market
  • tell consumers they operate as an independent advisor before providing any advice
66
Q

What can restricted advisers do?

A
  • recommend only certain types of products from 1 or a limited number of providers
  • only offer advice on particular products of particular companies
67
Q

What may restricted advisers choose?

A
  • to specialise in a particular market (e.g. pensions or ethical investment) + will be able to recommend products from all providers that operate in this market
68
Q

What is ‘execution only’?

A
  • when a customer chooses to get a mortgage w/o any advice
69
Q

How were many advisors paid before the Retail Distribution Review?

A
  • by receiving a commission from the firms whose products they sold
  • client paid indirectly bc cost of advisors commission was inc. in cost of product
70
Q

What does the Retail Distribution Review prevent?

A
  • financial advisors + sales staff from being paid commissions by firms whose products they’re selling
71
Q

What does the Retail Distribution Review apply to?

A
  • sale of investments (e.g. pensions, annuities + unit trusts)
  • not to some mortgages + insurance policies
72
Q

What is the aim of the Retail Distribution Review?

A
  • to stop sales ppl from pushing the sale of products paying them biggest commission
73
Q

What is the purpose of the rule ‘each adviser or sales person must declare their status to customer’?

A
  • to ensure financial advisors give customers a service that’s relevant to their circumstances + in their best interests
74
Q

What is the disadvantage of the rule ‘each adviser or sales person must declare their status to customer’?

A
  • financial advice is expensive + many ppl wouldn’t be prepared to pay for a consultation if they realise cost
  • only wealthy ppl can afford high-quality advice
75
Q

Why might a person wanting advice, go to family + peers?

A
  • may feel confident some1 close to them has their interests at heart
  • has a good knowledge of personal circumstances, personality + want + aspirations
76
Q

What are the disadvantages of using family + peers as a source of advice?

A
  • may be unreliable
  • may not have good knowledge of financial products
  • don’t know if product suits person they’re advising
  • key aspects of product might have changed

LIBF Unit 2 (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions