What 3 bits of info should a firm give it’s clients under consumer duty?
Options
Costs, benefits
Which products meet their needs
What are the broad catergories of a clients demnads and needs?
Protection
Income Protection
Pension
Investements
Savings
What is the general apporach to a clinets demands and needs?
Identify
Discuss
Quantify
Prioritise
Document
What do you need to clarify to evaluate attitude to risk?
Capacity for risk
Ability
Understanding of investments
Understanding Invetment Types
What must a firm understand to assess suitability?
Nature of Investment
Cost and risks
Provider
What should advisors be weary of when assessing risk of products?
That they assess the risk independently and not rely on the provider
Document the process
What are 4 guidlines for a written report?
No jargon
Short Sentences
Sub Headings
Balanced View
What are the elements of a general suitabiity report?
Name and Fin Situ
Demands and needs
Unresolved needs
Recommendation (cost, fees, etc)
Why product was chosen
Risk Profile
Summary and next steps
