Processes Rupert Gough Processes Rupert Gough

6 Stages of the Risk and Investment Advice Process

CPD Points available from this page.

Stage 1 – Establish & Define the Client Relationship

During this stage, you should be establishing the scope of your advice with the client. It should be clear that the client understands what is and is not covered by the advice you will give and what the implications are.

Evidence must include:

  • Provide Disclosure Document to client, sign and email to admin support, explain how they can complain and how you are paid

  • Provide Scope of Service Document to client, sign and email to admin support, in this document it must be clear any limitations to the service you a providing

  • Email or text evidence of conversations with client regarding meeting days, time and outcome use Debrief form (Client Interaction Form)

Stage 2 – Gather Data

During this stage, you should be gathering data and defining clear goals for your client. Goals should be expressed using the “SMART” acronym: specific, measurable, achievable, realistic, and time-bound. Use the One Page Plan or Fact Find document that is your preferred method of collection.

Evidence must include:

  • The Scope of Service document should be referred to in order to outline what will be analysed and what will not be

  • Establish the clients Goals, priorities and objectives – include a timeline

  • Establish client’s current financial position and personal situation

  • Collect proof of identification (Drivers Licence, Passport)

  • Establish a risk profile – remember they are different depending on

    • Insurance Risk Profile

    • Investment Risk Profile

    • Use the relevant online tools

  • Gather all existing client information; current insurance (products, amounts, providers) savings and KiwiSaver information

  • Any time you email or call the client to collect information – complete a Debrief form (Client Interaction Form)

  • An email confirming the Fact Find with the client 

Stage 3 – Analyse and Evaluate

During this stage, you should ensure that the client file contains enough evidence to show what research has been undertaken in giving the advice.  All of the evidence should be saved under the CRM Client name, an adviser can email the admin support staff to ensure this is completed.  Do not rely on ‘adviser thoughts’ – provide proof you work through options.

Evidence must include:

  • A note stating any documented assumptions that were made – repeat current situation, goals and needs, limitations

  • Document of independent research reports

  • Attaching a copy of the any reports or quotes to your background notes to support the recommendation you arrive at; this is the beginning of the Statement of Advice – you can use the SOA as a draft to work through decisions 

Stage 4 – Recommendation and Presentation

During this stage, you should be presenting the client with a recommendation that is clear, concise, and effective. The advice should align with the initial scope and be likely to achieve the client’s goals. Enough information should be provided so that a reasonable person could make an informed decision.

Evidence must include:

  • An email to the client containing a Statement of Advice, at this stage provide more detailed information about how you get paid – upfront commission, trail

  • A transcript of a conversation with the client where advice was given if applicable

  • Ensure that the SOA you provide shows in detail comparisons you made and why you reached your recommendation.

  • The SOA must be signed by the client – showing acknowledgement of advice and recommendation and agreement to proceed

  • Use the Debrief form (Client Interaction Form) to document the SOA presentation and confirmation of signing and proceeding 

Stage 5 – Implementation

During this stage, the advice and any variations are agreed to and noted. The process to implement the advice is clearly explained to the client when proceeding.

Evidence must include:

  • Email thread of discussion between adviser and client saved in CRM under client name

  • Note of a phone call/in-person meeting with a client for agreement to proceed Use the Debrief form (Client Interaction Form) to document

  • Ensure you have completed a Replacement of Business Form if required

  • Complete all application forms

  • Explain to the client the process for underwriting or application and any AML check required, if necessary, explain time take to complete this process Use the Debrief form (Client Interaction Form) to document, explain the offer of terms or acceptance if relevant

  • Provide the client with any relevant brochures and all contact details for Maurice Trapp Group

Stage 6 – Monitor and Review

During this stage, you should decide with the client how ongoing monitoring will occur and what the client should expect in the future. It should be clear what the respective responsibilities are between the client and yourself.

Evidence must include:

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