Topic 14-17

Question 1

All documentation relating to the recommendation of any product to a client by an adviser must be kept for a minimum period of five years.

Answer 1

False

Question 2

Match the review scenario given to the review service provided. (Pick only two)

Answer 2

The adviser contacts the client : Proactive servicing.

The client contacts the adviser : Reactive servicing.

Question 3

Match the appropriate product to the time period for which detailed records of the transaction must be retained by an adviser. (Pick only two)

Answer 3

At least five years : Life assurance.

Indefinitely : A pension transfer.

Question 4

A client’s attitude to risk can be defined by gaining an understanding of their ability to absorb falls in the value of their investment.

Answer 4

False

Question 5

An accident, sickness and unemployment (ASU) policy can be viewed as a long-term plan.

Answer 5

False

Question 6

Home reversion plans involve the homeowner selling a percentage or all of their property to the scheme provider.

Answer 6

True

Question 7

It is generally true to say that as people get older and their incomes increase they are less likely to invest in products that offer greater long term potential and carry a higher risk of short term loss.

Answer 7

False