INSU07030 2022 QFA Financial Advice - Theory

Assess the needs of consumers for protection policies, including life assurance cover, serious illness cover and business insurances, and for savings and investment policies and tracker bonds issued by life assurance companies.

Evaluate the needs of consumers for investment linked pension policies, including retirement annuity contracts, PRSAs, employer pension schemes (including small self-administered pension schemes (SSAPS), buy out bonds, AVCs, annuities, ARFs and AMRFs

Appraise the needs of consumers for savings and investment products, including life assurance investment policies, collective investment funds, tracker bonds, Exchange Traded Funds, derivatives and unquoted transferable shares.

Evaluate the needs of consumers for mortgage credit agreements, housing loans, home reversion agreements, consumer credit agreements, and associated insurances.

Evaluate the main regulatory requirements relating to the marketing of financial services products and to the sales / advisory process pertaining to such products; and

Assess the suitability of financial products in meeting the needs of consumers, including formulating comparisons of products, and evaluate ongoing client financial planning needs, including in relation to retirement planning and to relationship breakdowns.

This module is delivered with a blend of self-directed study supplemented by e-learning resources such as pre-recorded webinars and revision masterclasses. The teaching and learning modes will include:

Textbook

The Textbook is revised on an annual basis to reflect changes in legislation and regulation.  It is equivalent to the lecture notes students would receive in formal education institutions.

Revision Masterclass

Online lectures utilise lecture notes with extra reading material.  In these sessions real time practical examples will be used.  These classes provide the opportunity for the lecturer to maximise the use of formative assessment which helps the lecturer identify areas which the students are having difficulty with, so that adjustments can be made to the lecturing techniques, content of lessons and academic support.

In class discussion

Based on the theories/concepts underpinning business, in class discussion will be used to establish the level of understanding of the retail financial products.  Students will be encouraged to identify the application within their own place of employment and from the general business environment.

Self-Directed Questions

Self-Directed Questions will be used to determine their ability to review, fact-find and make recommendations while applying the knowledge they have acquired from the course textbook. 

Individual Work

Working as an individual will allow for the further development of self-discipline and enquiry.  

Personal Reflection

The personal reflection allows the student to look back over the learning experiences and identify areas for improvement and areas that worked well.

This module will be assessed 100% by final examination. Students who pass QFA - Financial Planning will be exempted from this module.

The repeat assessment will be 100% final examination.

Financial Planning: Fact-Finding

• Introduction to Financial Advice
• Financial Planning to Meet Financial Needs
• The Benefits of Financial Planning
• Conduct of Business Rules
• The Fact-Finding Process
• Errors and Inconsistencies
• Existing Clients
• Standard PRSAs and Fact-Finding Exception

Taxation

•  Introduction
• Income Tax
• Capital Gains Tax
• Capital Acquisitions Tax

Review: Pensions

• Introduction: Retirement Planning
• Personal Contracts
• Employer Pension Schemes
• Chargeable Excess Tax
• Annuities, ARFs/AMRFs, Taxable Cash
• Employee Leaving Service
• Pension Adjustment Orders – Retirement Benefits
• Comparing Individual Pension Plans
• Quantifying the Pension Need

Review: Life Assurance

• Types of Life Assurance Policies
• Serious Illness Cover and Income Protection
• Business Insurances
• Quantifying Protection Needs
• Protection Products: Choosing the Right Product, Term and Optional Benefits

Review: Investment

• Investment Asset Classes
• Deposit Accounts
• State Savings
• Shares
• Bonds
• Collective Investment Funds
• Tracker Bonds and Structured Retail Products
• Employee Share Incentives
• Alternative Asset Classes
• Financial Maths
• Lump Sum Investment Products: Comparisons
• Suitability Before Comparison
• Developing a Recommendation: Comparing Products Available
• Collective Investment Funds, Unit-Linked Bonds and Tracker Bonds: A Comparison
• Advising on Investment Needs and Objectives
• Investing for Income
• Comparing Fund Performance
• Savings Plans Comparisons

Review: Loans

• Loans as Part of the Financial Planning Process
• Credit Institutions and Intermediaries
• Housing Loans
• Consumer Credit

Assessing Suitability and Making a Recommendation

• The Financial Planning Process
• Prioritising a Consumer’s Financial Needs and Objectives
• Developing a Recommendation
• Suitability of Financial Advice

Client Reviews

• Introduction
• Frequency of Review
• Personal Circumstances
• External Developments
• Product Requirements
• Controlling the Exposure to Investment Risk
• Example: Review