FIN2106 Lecture 11: Module 11
FIN2106 – Module 11
- Prior to data gathering interview:
oFSG given to client, ideally when the appointment is made
oClient requested to bring financial documentation to meeting
oNeed to project a professional image
-Client information gathering
oThe interview:
Establish rapport
Discuss FSG, what is involved in financial planning, the process that will be
followed
Ascertain that client want this service
Address any concerns at this point
Gather information about client
Plan for interview
Agenda
Interview objectives
Record of interview
Follow-up action
oThe interview:
Data collection
General objectives (why seeing planner)
Specific objectives
Personal information
Financial information
Interview techniques
Client documentation
Client questionnaire form and other notes
Photocopies of relevant documents
Signed information authorisation
Closing the meeting
Recap objetives and discuss next steps
Sign off on data accuracy and plan preparation
-Developing financial strategies
oPossible financial strategies:
Protection of current capital
Recovery from chronic debt
Production of a minimum level of income
Accumulation of capital to make major purchases
Accumulation of retirement capital
Tax minimisation
oSelecting an appropriate strategy:
At this stage, financial products are not yet considered
Should be clear and concise
There should be a statement on how this strategy addresses client’s main
objective
Supported by financial projections
oMaking specific recommendations:
Product recommendations, ideally with comparison of alternatives
considered
Statement on why selected and how each product meets client’s needs
But, with disclaimers
-Components of a financial plan
oCovering letter
oExecutive summary
oCurrent situation
Document Summary
Prior to data gathering interview: fsg given to client, ideally when the appointment is made, client requested to bring financial documentation to meeting, need to project a professional image. Discuss fsg, what is involved in financial planning, the process that will be followed. Sign off on data accuracy and plan preparation. At this stage, financial products are not yet considered. There should be a statement on how this strategy addresses client"s main objective. Supported by financial projections: making specific recommendations: Product recommendations, ideally with comparison of alternatives considered. Statement on why selected and how each product meets client"s needs. Plan implementation and review: presentation of a financial plan: Normally takes place on second or third interview. Schedule another meeting after allowing for a study/thinking period. Change in personal circumstances with respect to taxation. Change in personal circumstances with respect to social security. Compare the current portfolio with the best portfolio.
