Future-proofing your pension advice processes

Check your answers

1. A key area of concern from the regulator in knowing your client relates to MIGs, this stands for:

a. A well-known fighter jet

b. Minimum income guarantees

c. Maximum information gathered

d. Material Information Gaps


2. When considering needs versus wants, the regulator wants you to consider expenditure in what categories?

a. Essential, lifestyle, discretionary

b. Need, must have, want

c. Savings, investments, tax liability

d. Current expenditures, future expenditure, unknown expenditure


3. A client’s capacity for loss is described as?

a. The client’s emotional and behavioural response

b. The client’s ability to bear a financial loss

c. How much risk they’re prepared to take

d. How much money they should set aside in cash


4. What is the regulator’s view on cashflow modelling tools?

a. It is mandatory

b. You must use a deterministic modeller

c. It is not mandatory

d. You must use a stochastic modeller


5. Which of the following statements is not true?

a. The risks of drawdown sit with the client

b. It is the responsibility of the adviser to ensure the client understands the risks associated with drawdown

c. Advised clients must assess the risk and demonstrate their understanding to the adviser

d. The adviser must demonstrate client understanding on the file


CPD certificate

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