6 Stages of the Risk and Investment Advice Process

Staff / Adviser completing this learnings record*

Q1: What are the important parts of Step 1 – Establish and Define the Client Relationship? Select the two correct options.*

Provide Disclosure Document to client, sign and email to admin supportProvide Scope of Service Document to client, sign and email to admin supportMeet at a café to discuss what their needsProvide the client with your business card and contact details

Stage 2: Some of the important information that needs to be gathered is;

what the scope of the service you are providing includes and what it does not include
the clients goals, priorities and objectives, including timing
the clients current personal and financial situation
the clients proof of identification
the relevant risk profile
current insurance, savings, investments including Kiwisaver

Q2: Is the above paragraph true or false:*

TrueFalse

Q3: What is the best way to gather all of the client information that is required at Stage 2 of the advice process? Please select the correct response…*

Fact Find/One Page PlanBack of a paper napkinMemoryLet the client decide what they tell you

Q4: Stage 3 of the 6 stages of advice process is when the adviser completes analysis and evaluates all the data collected. Using independent research houses where applicable, and researching products directly with the providers that are being considered. Where is the best way to store all this information about a client? Please select the correct response*

In the adviser’s memoryOn paper in adviser notebookIn the MTG CRM systemOn adviser desk in case anyone needs to find it

Q5: During stage 4 of the 6 stage advice process, you should be presenting the client with a recommendation that is clear, concise, and effective. The advice should align with the initial scope and be likely to achieve the client’s goals. Enough information should be provided so that a reasonable person could make an informed decision. Which of the following statements is correct?*

An Adviser must supply a client with an email containing the Statement of Advice, including details of how they get paid. The Statement of Advice must be read and understood by the client, the Statement of Advice does not need to be signed at this stage. The Debrief form can be used to document this occurring.An Adviser must supply a client with an email containing the Statement of Advice, they are not required to disclosure any payments received at this stage. The Statement of Advice must be read and understood by the client, the clients signature indicates understanding of the advice provided. The Debrief form can be used to document this occurring.An Adviser must supply a client with an email containing the Statement of Advice, including details of how they get paid. The Statement of Advice must be read and understood by the client, the clients signature indicates understanding of the advice provided. The Debrief form can be used to document this occurring.

Q6: Stage 5 of the 6 stage advice process is when advice is taken and implementation occurs. Select the correct steps that must occur at this stage from the list below;*

Email discussion with the client about acceptance of advice and agreement to proceed, saved in CRMComplete the replacement business form if requiredComplete all application formsClearly explain all underwriting/application processes to the clientExplain the offer of terms to the clientProvide all documents/brochures to the clientAll of the above

Q7: The final stage of the 6 stage advice process is the monitor and review stage. During this stage, you should decide with the client how ongoing monitoring will occur and what the client should expect in the future. It should be clear what the respective responsibilities are between the client and yourself. You must provide the following to the client. Please select the correct response*

A colour copy of the Statement of Advice that they signedAn email to the client explaining what they should expect from the adviser and how to make contact, including a 12 month review booked inA phone number for the office so they can contact to arrange a review meeting when they want one

Total Score

You cannot submit this learning until you have reached a pass mark (70 points).

Total CPD Points Achieved