Issues, Options & Risks
We are probably still in the first client meeting, however this is the transition stage, and allows the adviser to take away the information for consideration. Critically the adviser should be confident that as much information has been collected as possible, and that the client is happy with what is going on.
the adviser may take time out to research here and move to a second meeting.
The adviser’s own style will dictate what actually goes on. Our comment is that once information has been collected the experienced adviser will be able to raise various issues, and options with the client, and indeed trial certain solutions. This testing of solutions is important and also represents what we have called "Risk tolerance testing with the client". This is important as it tests real solutions against the basic risk rating that the client has been assessed upon.
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Things to be discussed
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Things to be handed over
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Administrative Tasks
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- Agree retirement lifestyle goals & choices
- Confirmation of Retirement Asset Pool
- Matching Objectives to solutions. Test potential Solutions
- Results to attitude to risk
- Compare & Contrast options & explanation of risks
- Risk Tolerance testing
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- Summary of Client policies & Retirement Asset Pool
- Results presented if external system utilised
- Possible Quick quote
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- Ensure all stage one admin is completed
- Consideration of solutions
- Preparation of suitability letter
As a consequence of this work:
- Review data on FF and SFF
- Research the Market Place
- Draw up potential Solutions
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By now we will have challenged and tested the client in the nicest possible way. A good mutual understanding of the issues and risks will exist as well as a useful gauge of the clients tolerance for different risk scenarios – Some potential solutions will have been discussed, and the adviser and client will have begun to identify an appropriate set of solutions.
Notes
Risk Tolerance testing: Having arrived at an agreed attitude to risk through conversation and/or actual questionnaire testing, it is very important to begin to test this with real solutions, and scenarios. This may well be an iterative process as the adviser must be sure that the client has a full and proper understanding of the issues and the consequences to these assumptions.
Second meeting: Our model suggests that this may be a good time to break away for a second meeting. Having raised issues options and risks the adviser can go away and research possible solutions and reflect on the client needs. At the beginning of the next meeting the client will have had time to reflect and consider the initial discussions. The second meeting is the real opportunity to check the thinking of the client and how comfortable they are with particular solutions.
