For example a SMSF may be found to be suitable for a client although a more

For example a smsf may be found to be suitable for a

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aspect without considering all factors. For example a SMSF may be found to be suitable for a client although a more pressing issue is that the client is heavily in debt which is not considered.
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15.5 Does a disclaimer in an SOA assist the client in any way? If so, how? In what way might a disclaimer be used to assist the financial planner? Disclaimers assist both financial planners and clients to understand the basis behind the services and advice provided. Accordingly, disclaimers can help to reduce the risk of potential disputes leading to litigation. They are included in the statement of advice for both professional and legal reasons. Whilst disclaimers may not entirely eliminate disputes arising with clients, they are very effective in creating a sense of professionalism, clarification and trust building. 15.8 An SOA should be developed to accommodate a client’s aims and goals. On the basis that these goals are likely to change over a client’s lifetime, by what means can a financial planner ensure the goals continue to be achieved? This could be achieved through regular reviews of the client’s circumstances and the health of the investments. The review process of a financial plan should be established and agreed upon when the plan is implemented. Review is usually undertaken once or twice a year, but can be undertaken more frequently based on the client’s circumstances and needs. A review of a plan is similar to the regular maintenance of a car — for the process to work effectively, their needs to be regular attention and monitoring of the situation. The review of the plan should follow the same procedures that were followed when the plan was initially constructed. That is, by including the six-step process of data gathering, goal setting, analysis of the financial situation, development of recommendations and modifications of the plan, and implementation of changes. Plan review may also be necessary when changes to legislative rules and regulations affect the client’s position. 15.11 Explain the purpose of an executive summary in an SOA.
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