NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Case Studies in Comprehensive Financial Advice
Which document should an investment adviser provide to a client to record the scope of advice, fees and the client's acknowledged risk profile before advice begins?
The adviser should provide a client agreement together with the documented risk profiling outcome. The agreement records services, fees and terms, while the risk profile supports suitability of advice. Verbal confirmation, scheme documents or contract notes do not meet this requirement.
- AOnly a verbal confirmation of the fee
- BClient agreement along with the risk profiling outcomeCorrect
- CA mutual fund scheme information document
- DA stock exchange contract note
Explanation
Under the investment adviser regulations, the adviser enters into an agreement with the client setting out terms such as services and fees, and conducts risk profiling before giving advice. The other documents do not serve this purpose.
Did you get it right without looking?
One question tells you little. A timed set on Case Studies in Comprehensive Financial Advice shows your real accuracy, how long you take and where you lose marks.
More Case Studies in Comprehensive Financial Advice questions
- A client aged 30 with two young children and a spouse who is a homemaker has no savings buffer and a large home loan. In comprehensive advic…
- Caselet: Mr. Iyer, a resident individual under the old tax regime, sold listed equity shares after holding them for 18 months and made a lon…
- Caselet: Mr. Rao plans to retire in 20 years. His current annual expenses are Rs 8 lakh. Assume inflation of 6% a year, so expenses at retir…
- While preparing a comprehensive financial plan for a new client, an investment adviser finds that the client has no term insurance, no emerg…
- While preparing a comprehensive financial plan for a new client, an investment adviser finds that the client's stated goals conflict with th…
- While preparing a comprehensive financial plan for a new client, an investment adviser has completed the client's goal identification and co…