Skip to content

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

In the personal financial planning process, which step comes immediately after gathering the client's data and defining the client's goals?

After gathering data and defining goals, the adviser analyses the client's financial status to identify gaps. Only then are recommendations developed and presented, followed by implementation and periodic monitoring. Implementation and review cannot precede analysis, and the advisory agreement is concluded at the beginning of the relationship.

  1. AAnalysing the client's financial status and identifying gapsCorrect
  2. BMonitoring and reviewing the implemented plan
  3. CImplementing the recommendations
  4. DSigning the advisory agreement

Explanation

The standard process runs: establish the relationship, gather data and goals, analyse the financial status, develop and present recommendations, implement, then monitor and review. Analysis therefore follows data and goal collection. Implementation and monitoring come later, and the agreement is signed at the start.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Personal Financial Planning shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Personal Financial PlanningFree diagnostic mock

More Introduction to Personal Financial Planning questions