FINS2643 Lecture Notes - Lecture 2: Debt Service Ratio, Tax Advisor, Financial Planner
16 Oct 2018
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= give by fp at start of meeting. Includes info about fees, p&s offered, business name, licensee number and etc. Wk 2: the financial planning process (chapter 4 and 5) > quantitative = risk portfolio, gender, occupation, family etc. Data collection is a critical first step -> asic g175: (cid:858)know the client(cid:859) rule. Ways to measure risk tolerance: risk profiling questionnaire, myer briggs, interviews, goals and objecives/analysis. Short (priority) [< 12 mths], mid [1 5 yrs], long-term goals/objectives [> 5 yrs] Lifecycle stage of the client must be identified since goals & objectives depend a lot on life cycle. = short investment horizon: identify problems and issues of clients balance sheet and income statement of client. = focus on hobbies/extra: preparation of statement of advice (soa) The financial services reform act 2001 required fps to provide clients with the soa. > fp must inform client if they agree with soa, decision must be implemented within 30 days.
