IEG_02885_PSR_Case_Study_Activity_3_20160906_Resub1_001

Tristan and Ann agree to implement the recommendations you have made. They also are keen to sign up to an ongoing service agreement.In this context, they would like some information regarding the reviewservices you offer.  Assessment TaskPlease include in your explanation: • Why it is important to review the personal superannuation strategy recommended, • the nature of the review services offered (product specific updates, general market news, review of the client’s circumstance especially if they have changed, etc.), • the frequency of reviews, • the any other types of communication between you and the clients outside of the reviews, and • the ‘opt-in renewal notice’ concept – its purpose and how the process will work.There are many reasons as to why a client should be reviewed. Even if aclient comes to you and you give them the perfect advice at the time,situations may change and vary on a daily basis and eventually the overalladvice may need to change as well. To begin with, a clients overall life stylemay change. This could include having kids, sending kids to schools, payingfor extra curriculum activities and so on. They may not have had this plan tobegin with but sometimes things happen that you may not plan for at thestart.Another thing is Ann could even potentially increase her hours at work, ortake on extra work which means their cashflow could also increase, oropposite to that, the cashflow may decrease.Another aspect is that the clients overall risk factors may change. For nowthey may be balanced, but you never know that they could become agressiveover time and therefore need a review.Reviews can be offered to the clients whenever they need, however I wouldarrange mine to be quarterly. Some advisors may choose to do monthlyreviews, quaterly, half yearly, or the most common is yearly reviews.Sometimes it may be sufficient to just have a phone meeting to update anydetails rather than actually a face to face meeting, however at the end of theday it depends on the clients situation.Despite reviews, the clients can also be kept in touch via email or phone. Ifthere is any relevant information that the client should be aware of, then astheir adviser I would get in touch with them.

A review can provide Ann and Tristan valuable information. If any thing overthe time they have not been seen has changed, they can get a new updateon the situation. For instance, if the markets have changed or terms andconditions relating to their investments have changed then they can find out.If there are any concerns too, then again they can find out.Opt-in and fee disclosure is a two yearly opt-in arrangement and annual feedisclosure statement for clients paying ongoing fees. For each client payingongoing fees, being fees that continue for longer than 12 months, financialadvisers are now required to:•give each client an annual statement disclosing the fees that the client haspaid and the services they have received (the fee disclosure requirement);and•send a renewal notice every two years and receive the consent of eachclient to continue charging them (the opt-in requirement).Certain fee arrangements are excluded from the requirements, includingpayment plans such as upfront advice fees paid by installments,arrangements where the only fee payable is an insurance premium andarrangements where the fee payable is a product fee.