Financial Planning How to deal with difficult questions of your clients

How to deal with difficult questions of your clients

A recent CFA Institute study has compiled some difficult questions that your clients may ask and suggested measures to deal with such questions.
Team Cafemutual Sep 29, 2017

Financial advisors deal with  the same questions from clients over time such as what to do with their money, how to plan for retirement and what type of insurance products they should consider. However, at times, a client throws a question that will stump you.

A recent CFA Institute study has compiled some frequently asked difficult questions and suggested measures to deal with them.

Portfolio management

• Who will be working on my portfolio and what are their credentials and experience?

• What happens to my portfolio if you or members of your team leave the firm or die?

• Can you provide me with examples of the analysis and process you perform to arrive at investment decisions?

The key consideration of investors is that the person or team they have identified is careful, judicious, and diligent. Advisors should make their clients understand their expertise and what would happen to their portfolio if they die or change their profession. You should make them understand the investment philosophy of the fund house that investors are entrusting their money.

Clients’ interest

Clients are often sceptical about the firm or advisors’ actual interest. Here are some questions they usually:

• What regulatory standards, if any, govern our relationship?

• How do you decide which investments to recommend? Are you free to recommend investments sponsored or managed by other companies?

Advisors should ensure that they put the clients’ interests before theirs and their organizations. Recommending funds or schemes that fetch  higher commission or have some personal benefit associated to it is against the ethical conduct of advisors, says the study.

Disclosure of conflict of interest

Very often, conflict of interest arises between an IFA and his client due to several reasons like fees arrangements, investment performance and so on. To ensure that it is a hassle free process, clients may ask the following questions.

• What is your process for identifying and communicating conflicts of interest?

• How are conflict of interest addressed and mitigated and can you share an example?

It is important to realize that conflicts of interest do come up, but the important thing is that you trust the person you work with to handle them responsibly and with transparency. Advisors should ensure that the trust is developed in the advisor-client relationship by maintaining a transparent process and communicating regularly and effectively.

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JP GOYAL · 11 months ago
suda bhanu · 5 months ago
good info.
Felix Zeman · 3 months ago
Please read my provider's BG/SBLC Sale Transaction Procedure below and see if it will suit your requirements.


1.    Buyer submits Letter Of Intent (LOI) with full banking coordinates (there must be sufficient cash funds in this account), Enlarged 140% Colour copy of Passport , Client Information Sheet , Certificate of Incorporation (if applicable), Corporate Resolution (if applicable), Non-Solicitation Statement, and an Irrevocable Fee Protection Agreement .

2.    After conducting due diligence, the Seller will countersign the LOI and return it to Buyer including details of the BG Issuing bank, and Seller’s Passport copy. This LOI automatically becomes a full commercial recourse contract and will be notarized to avoid contract breach and Buyer will be required to take care of notarization expenses of the contract documents here in UK. After notarization of the contract documents here in the UK, both parties shall lodge the executed contract with their respective Banks.

3.    Within two (2) banking days, the Seller’s Bank shall send a PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer’s Bank. (EXHIBIT A )  The PRE-ADVICE shall be valid for  four (4) banking days only.

4.    Within the same banking day, the Seller shall email a courtesy copy of the PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer for confirmation. Within three (3) banking days after authentication of the PRE-ADVICE SWIFT MT199 or MT-799, the Buyer’s Bank shall reply and send a  SWIFT MT-799 to the Seller’s bank and a courtesy copy shall be sent  to the Seller’s email.

5.    Within three (3) banking days, after authentication of the Buyer’s SWIFT MT-799, the Seller’s BG Issuing Bank shall send the Bank Guarantee via SWIFT MT-760 to the Buyer’s Bank  ( EXHIBIT B ) and a courtesy copy shall be sent to the Buyer’s email. The Buyer’s bank verifies and authenticate the BG sent via SWIFT MT-760.

6.    Within three (3) banking days, after authentication of the BG sent via SWIFT MT-760, the Buyer shall send payment to the Seller via SWIFT MT-103 and concurrently pay Consultants commission fees of Two Percent of each tranche face value. Courtesy copies of the commission payments shall be sent to the respective consultants/beneficiaries and their paymasters.

7.    Within seven (7) banking days after authentication of receipt of payment to the Seller, the Seller’s BG Issuing Bank shall send the hard copy of the BG to the Buyer’s Bank  via Bank Bonded Courier.

8.    All subsequent tranches will be based on the same procedures until collateral or funds become exhausted.

9.    Any unauthorized calls by any party or its representative lawyers to probe or communicate in an improper way to bank(s) in this transaction shall be prohibited and contract terminated.

10. Please, Ready, Study and Understand VERY WELL, we will work STRICTLY base on this Transaction Procedure.


Contact Me Via Email:-

I look forward to a mutually beneficial business relationship.


Felix Zeman.
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