Financial Advice chp 10

What is the main purpose of financial advice according to the text?

Which of the following is NOT mentioned as one of the main areas of financial advice in the text?

What is a crucial step for a financial adviser before recommending products to an individual?

How can financial advice be received according to the text?

What must a financial adviser ensure when recommending products to an individual?

Why is budgeting mentioned as an essential financial advice activity?

What is one of the main benefits of budgeting mentioned in the text?

What is the first step suggested in taking control of finances according to the text?

What is considered a 'good debt' as per the text?

Why is it important to work out how much one can afford to repay each month before borrowing?

What type of insurance is designed to pay a lump sum in the event of suffering from critical illnesses?

Which factor should be considered before choosing the right type of credit or loan according to the text?

What should be done to set savings goals after identifying major areas of expenditure?

'Bad debts' as described in the text do NOT include debts that:

Which area requires protection according to the text?

What does 'financial stability and protection' involve according to the text?

What is one key feature of critical illness cover in relation to age?

In income protection cover, what is referred to as 'incapacity'?

Why might an insurance company extend the deferred period for income protection cover?

What can cause a claim under income protection cover to be declined according to the text?

What is the primary purpose of mortgage payment protection cover?

Under mortgage payment protection cover, how are benefits affected by income from other sources?

What is a common feature of personal accident policies regarding coverage period?

What is NOT generally covered under personal accident policies as per the text?

What factors could lead to the denial of a claim under personal accident policies?

How do accident and sickness cover differ from other types of insurance?

What term is now being used to refer to acceptable tax planning?

Under a territorial-based system of taxation, residents are taxed on income and capital gains arising...

What happens if a person dies without leaving a will?

What does tax avoidance involve?

Which countries have a worldwide-based system of taxation?

Why is international cooperation increasingly used to counter tax avoidance and evasion globally?

What is the purpose of long-term care cover?

Which type of insurance may have limits on what will be paid out per claim or over a period such as a year?

What does compound interest refer to?

What are some key features of private medical insurance policies?

Why might someone find the value of long-term care cover important?

What aspect of business insurance involves providing payments if a key member dies?

How are savings affected by reinvesting earnings according to the text?

What is a common exclusion in private medical insurance policies?

'House and contents insurance' are briefly covered because:

'Business insurance protection' mainly consists of which two types?

What is the main concern of estate planning?

Why is making a will particularly important for a family with young children?

In estate planning, what is one way to reduce estate taxes?

Why does starting to save early for retirement have a significant impact?

What is a key aspect of estate planning related to liabilities?

How does delaying saving for retirement impact the accumulated fund?

What is a critical step in estate planning related to mitigating inheritance tax?

Why is it essential to consider specific gifts and beneficiaries in estate planning?

What happens if estate planning is not done effectively before death?

What is one downside mentioned about attractive accounts mentioned in the text?

Why is investing different from saving?

What is one reason why investments may outperform cash savings?

Why is relying on the state for retirement income not a viable option?

What is highlighted as a potential issue with existing pension plans in the text?

Why does the text recommend starting to save for retirement early?

Based on the example in the text, what annual return rate was assumed for the retirement fund?

What is meant by compound interest rates as mentioned in the text?

How does a simple estimate method suggested in the text help in planning for retirement?

Why might someone want to determine what rate of return their retirement fund can generate?

What is a legal person's ability to enter into contracts and be sued called?

When does an individual acquire legal person status according to the text?

What limits a person's legal capacity to make choices and decisions according to the text?

What term refers to the ability of a person to make their own decisions and enter into contracts?

What types of entities can be recognized as legal persons according to the text?

In what circumstances is an individual's legal capacity to make decisions limited?

What happens if a minor decides to terminate a contract before they reach 18?

In the UK, what happens when a minor ratifies a contract after reaching the age of 18?

What is the legal document that authorizes someone to act on behalf of another called?

What type of Power of Attorney ends either at a specified time or upon the request of the donor?

What is the term for a person responsible for administering the estate of a deceased?

What legal document confirms the appointment of an executor or administrator?

In estate planning, what action can a minor take regarding a contract they entered into?

What type of power authorizes someone to act on behalf of an individual who lacks mental capacity?

Who needs to apply for a grant of probate in case of administering someone's estate who left a will?

What is the term for a legal document confirming the appointment of an executor or administrator?

What is the primary difference between liquidation and administration in the context of companies?

How does a liquidator contribute to the process of liquidating a company?

What action is typically taken by an administrator when a company is placed under administration?

Which authority should be contacted in the UK to report instances of scams according to the text?

What is the primary objective of an insolvency practitioner or 'administrator' when taking control of a company?

Why is it crucial for companies to differentiate between liquidation and administration processes?

What is the function of the agent in the law of agency?

In a partnership agreement, who decides on the terms of the relationship?

What distinguishes a limited partnership from other types of partnerships?

Why might a financial institution require to see the incorporation documents of a company?

What is one significant feature that distinguishes a company from its shareholders?

In a trust deed, what do trustees gain legal ownership of?

What defines a limited liability partnership (LLP) as a corporate version of a partnership?

'Agency' in business refers to:

'Partnerships' as discussed in the text are formed with the intention:

What types of property are recognized in most legal systems?

In joint ownership known as tenancy in common, what happens if one of the owners dies?

What is the major difference between real property and personal property?

What happens if an agent exceeds their authority in making a contract on behalf of a principal?

What does insolvency refer to?

What is the duration of bankruptcy if an individual cooperates with the official receiver or trustee?

In tenancy in common, what happens to an owner's share of a property when they die?

'Insolvency' and 'bankruptcy' differ primarily in that:

'Real property' includes which of the following?

'Personal property' differs from 'real property' mainly because personal property:

What is the overall structure of the financial planning process, as described in the text?

What is emphasized as crucial for financial advisers to consider before recommending products?

In the financial advice process, what is the key factor that determines the value of technical knowledge to the client?

What distinguishes a structured advice process from just having technical knowledge of investment products?

Why is it essential for financial advisers to match solutions with clients' needs?

What role does monitoring and reviewing clients' circumstances play in the financial advice process?

What is a key step in the financial advice process that involves establishing an effective relationship with the client?

What is the primary role of a financial adviser in relation to a client's objectives?

What is a fiduciary duty that financial advisers owe to their clients?

Why is it important for an adviser to gather detailed information about a client's assets, liabilities, and family circumstances?

Which communication technique is essential for ensuring the quality of financial advice given to clients?

Why is listening considered a crucial skill for financial advisers?

What principle requires firms to obtain sufficient information about customers to ensure suitable advice?

Why is establishing an effective client relationship before giving financial advice important?

What does an adviser's fiduciary duty require them to observe in their relationship with a client?

What is one reason advisers spend time training in communication techniques?

What is the purpose of gathering information about the client in the financial planning process?

What is the key element in establishing a client's risk profile in financial advice?

Why is the client's risk profile important in recommending financial planning strategies?

What is 'capacity for loss' defined as in assessing a client's risk profile?

What is 'attitude to risk' based on when assessing a client's risk profile?

How does risk tolerance differ from attitude to risk in assessing a client's investment preferences?

In financial planning, what factor determines what products are suitable and what level of risk should be adopted?

'Capacity for loss' in assessing a client's risk profile relates to which aspect of the client's financial decision-making ability?

What can be determined objectively when assessing a client's ability to take on investment risks?

Why is it mentioned that different people have varying levels of risk tolerance in investments?

What must a firm consider when deciding whether to offer investment advisory services or discretionary portfolio management to a client?

In financial services, what is 'material information' that must be disclosed to clients?

What does the 'cooling-off' period allow for in financial services?

What is the primary factor that dictates a consumer's rights in financial services?

Why is it essential for financial advisers to provide sufficient information about proposed investments to clients?

What should a firm do before making a personal recommendation to a client?

What do consumer rights in financial services depend on, apart from contractual terms?

Why should a firm provide a clear notice about a client's right to cancel after a sale?

What is one key aspect of maintaining consumer rights after purchasing financial products?

Why is it important for firms to agree with clients on conducting periodic assessments of their investments?

What factor should determine the frequency of conducting a periodic assessment of a client's investments?

Why is it mentioned that fairly small changes in financial behavior can have a cumulative effect on a client's finances?

What guides firms in determining the content of a periodic suitability report for clients?

In financial planning, why is it essential for clients to review their plans regularly?

What is the purpose of providing clients with a periodic suitability report in financial planning?

What does a young client investing for retirement in their 30s aim for primarily?

Which factor can significantly influence a client's risk profile according to the text?

What subjective factor can affect a client's risk attitude even if they are financially capable of higher-risk products?

Why might a cautious client opt for lower-risk investments despite being financially able to invest in higher-risk products?

What is an important consideration when assessing a client's risk tolerance according to the text?

What aspect of a client's risk profile may change as retirement approaches according to the text?

How can a client's approach to bad decisions affect their willingness to take risks?

What role does age play in determining acceptable levels of risk according to the text?

How does financial knowledge impact a clients willingness to accept investment risk?