Conclusions and Recommendations

What must an adviser do with their recommendations?

Organise the recommendations into a complete recommendation for the clients' consideration.

What is good practice in making product recommendations as well as fact-finding?

It requires a combination of efficient procedures and high ethical standards.

How/why should an advisers be prepared to adapt their presentation or report?

They may need to change the style and content for it to be more easily understood by clients with different capacities and needs.

What forms can the recommendation be in?

Any form, but there are fixed rules about what the report must cover.

What is the FCA concerned about with recommendations?

Due diligence, as it is one of the root causes for poor customer outcomes.

What does research and due diligence refer to?

The process carried out by the firm to assess:

- the nature of the investment

- its risks and benefits

- the provider (to see whether they believe it appropriate to trust them with client assets)

Why does a firm need to understand these factors?

To judge whether the solution is suitable.

Does the reasonable level of research and due diligence differ?

Yes, depending on the adviser's recommendation and the needs of the client.

What will an oral presentation explain?

The advantages and disadvantages of each of the adviser's recommendations.

What is important for oral presentations?

Presentation skills are critical in securing acceptance of recommendations, and should be a two-way communication in which the client is fully involved.

What questions should be asked and why?

Open ended questions like 'what do you think about that...' and checking questions like 'are you happy with this part?', to allow the client to express their own thoughts, views and opinions.

Could closed questions be used?

Yes, to gain specific information and facts, like 'what were your earnings in this tax year?'.