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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Introduction to Personal Financial Planning

In the financial planning process followed by an investment adviser, which step comes immediately after gathering the client's data and establishing the client's goals?

After gathering data and defining goals, the adviser analyses the client's financial status and develops the plan. Implementation and monitoring come later, once recommendations have been presented and accepted by the client.

  1. AAnalysing the client's financial status and developing the planCorrect
  2. BMonitoring the plan after implementation
  3. CImplementing the recommendations
  4. DSigning the client agreement

Explanation

The standard process is: establish the relationship, gather data and goals, analyse the client's financial status, develop and present recommendations, implement, and then monitor. Monitoring and implementation occur only after analysis and plan development. Hence analysis and plan development follow data and goal gathering.

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