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 determining the client's goals and expectations?
After gathering data and goals, the adviser analyses the client's financial status, including net worth, cash flows and risk capacity. Only then are recommendations developed, presented, implemented and monitored. Analysis must come first because recommendations depend on understanding the client's current position.
- AAnalysing the client's financial statusCorrect
- BMonitoring the plan
- CImplementing the recommendations
- DPresenting the financial plan
Explanation
The usual sequence is: establish the relationship, gather data and goals, analyse the client's financial status, develop and present the plan, implement it, and then monitor it. Analysis of the financial position therefore follows data gathering. Implementation and monitoring come much later, after the plan is presented.
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