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LIBF Unit 2 > Topic 9 - Sources of information and advice > Flashcards

Topic 9 - Sources of information and advice Flashcards

1
Q

What are the 3 main elements used to make financial decisions?

A
  • own needs, wants and aspirations
  • solutions and providers available
  • details of product brands
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2
Q

What information would a potential customer need to know before making a financial decisions?3

A
  • themselves, their own needs wants etc
  • solutions available and their providers
  • product brands
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3
Q

Why do people need information and advice? 3

A
  • to help make an informed choice for the most appropriate financial product for them
  • a lot of people do not have the knowledge to make decisions without advice
  • customers need information once they have chosen the product too
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4
Q

What information will providers give individuals?

A
  • about the financial products they sell but nit products sold by others
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5
Q

what requirements does the FCA need when provided with information?3

A
  • fair
  • not misleading
  • highlight any special risks
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6
Q

What are the 4 methods individuals can obtain information from providers?

A
  • marketing brochures and leaflets
  • provider websites
  • tv and radio adverts
  • providerstaff
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7
Q

what are the main media sources for reliable financial information?

A
  • Money box
  • Newspapers
  • Price comparison websites
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8
Q

What is the money box?

A
  • programme on BBC Radio 4
  • gives ‘the latest news from the world of personal finance plus advice for those trying to make the most of their money.’
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9
Q

What is the purpose of MoneyBox?

A
  • to identify problems that people might be having with particular products
  • to warn listeners agains scams.
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10
Q

What are price comparison websites?

A
  • sites that provide information about financial products that help people to make informed decisions
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11
Q

What are the advantages of price comparison websites?4

A
  • consumers can access ar a glance products from providers
  • can get information from providers without contacting each separately and save time
  • consumers can find ‘best buy’ tables
  • consumers can enter their own specifications and find products that suit their needs
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12
Q

What are the disadvantages of price comparison websites?4

A
  • not everyone has access to a computer and some people are not computer literate
  • not all price comparison sites are reliable
  • price comparisons sites give headline details but consumers should read fine print to check T&C’s
  • some sites are biased due to sponsorship from specific providers who push products and not give impartial advice
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13
Q

What are some public sources of financial information?

A
  • MoneyHelper
  • FCA
  • Competition and Markets Authority
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14
Q

What is the MoneyHelper?

A
  • service set up in the financial services act as consumer financial education body
  • support and advice from 3 government backed seervices
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15
Q

What are the objectives of the Money Helper? 3

A
  • to enhance the understanding and knowledge if members if the public amount financial matters
  • includes UK financial system information
  • enhances peoples ability to manage their own financial affairs
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16
Q

What does a Money health check do?

A
  • look at a persons overall financial position in relation to their circumstances and aims to anticipate future events
17
Q

What is a money health check? 2

A
  • questionnaires on the websites of some bank and building societies.
  • use behavioural insights to encourage people to take financial action
18
Q

What do money health checks do?4

A
  • answers questions about monry
  • help show people their priorities
  • helps set clear goals they can work towards
  • draw up a personalised action plan
19
Q

What are the questions of money health checks about? 12

A
  • attitudes to managing money
  • age, marital status, work situations of themselves and their partner
  • own their home and whether they have a mortgage
  • any people depending financially on them or they depend on
  • how far their money stretches
  • how much they rely on borrowing
  • if they have accessible savings
  • if they could cope with an unexpected cost they could nor pay for themselves
  • if they’ve planned wills
  • how going to manage retirement
  • whether they have any savings or investments
20
Q

What is an action plan? 2

A
  • the broken down product of a money health check
  • includes step by step help on what to do
21
Q

What topics do financial education and information provide?

A
  • different life events
  • everyday money and benefits
  • money topics
  • tools and resources
22
Q

What advice does the money helper provide on different life events? 4

A
  • information on financial implications
  • the legal position
  • how someone can ho about making financial plans to deal with it
  • financial products that might be useful in such a situation
23
Q

What advice does the money helper provide on everyday money and benefits? 4

A
  • helps people get finances into control
  • advice to make money go further
  • includes budgeting, reviewing or reducing borrowing
  • money saving tips, universal credit and other benefits, bank accounts credit and debit cards
24
Q

What topics does the money helper provide advice on?8

A
  • savings
  • investments
  • borrowing
  • debt management
  • work
  • insurance
  • pensions
  • retirement
25
Q

What advice does the money helper provide on tools and resources? 5

A
  • includes calculators and budget planners
  • comparison tables
  • letter templates
  • action plans
  • a blog about financial news
26
Q

What is the aim of the competition and markets authority?

A
  • makes markets work well for consumers
  • achieves this by promoting and protecting consumer interests while ensuring that business
27
Q

What successful campaigns have citizen advice passed? 5

A
  • promote awareness of scams
  • improves customer service and choice for prepay energy customers
  • fair treatment for people using pay day loans
  • changing the law so customers can choose correct bills
  • ban on letting agent fees for tenants
28
Q

What are the 3 steps SteChange set out for debt free futures?

A
  • deciding to get help on debt
  • access dent advice via its antonyms online debt remedy tool or call the phone debt helpline and speak to an expert adviser
  • use the practical solution that works for them
29
Q

What are the types of financial advisers?

A
  • independant financial advisers
  • restricted advisers
30
Q

What classifies as independent financial adviser? 3

A
  • offer a broad comprehensive range of retail investment products
  • give consumers unbiased and unrestricted advice based on their comprehensive and fair analysis of the relevant markets
  • telling consumers they operate as an independent advisor before providing any advice
31
Q

What is an Independent financial adviser?

A
  • provides advice by considering all types of retail investment products that might meet a clients needs and objectives
32
Q

What is a restricted adviser?

A
  • recommends only certain types of product from one or a limited number of providers
  • advice only on particular products and companies

LIBF Unit 2 (9 decks)

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