Developing and Presenting Financial Solutions: Advisor's Report

This report analyzes the actions of a financial advisor in the context of providing financial solutions to a client. It examines the advisor's approach to understanding client needs, explaining financial products (including term life, trauma, and income protection insurance), and making recommendations. The report highlights the importance of a thorough analysis of client requirements, including the associated risks and benefits of different insurance options. It also emphasizes the advisor's role in ensuring clients possess the necessary knowledge before making decisions. The successful completion of a Statement of Advice (SOA) process is also discussed, including the client's consideration of advisor recommendations regarding investment in funds and the comparison of products based on protection, automation, and connection aspects. The report references relevant literature to support its findings, providing a comprehensive overview of the financial advisory process.

Develop, present and
negotiate solutions for client

Table of Contents
SECTION-2.....................................................................................................................................3
1. Advisor actions........................................................................................................................3
2. Advisor explanation with respect to financial products..........................................................3
3. Successful completion of SOA................................................................................................4
REFERENCES................................................................................................................................1

SECTION-2
1. Advisor actions
The advisor need to carefully analysis of the required options with respect to client
requirement. This analysis must include every advantage and the associated risk with its intensity
(Hauptman and Roper, 2017). Thus, before the transferring of risk by insurance products toward
the company insurer must ensures that every requirement and the condition regarding the
insurance is fulfilled because if it will not be studied then there are chances that the claim may
get dishonoured. Thus, as an advisor it must ensure that the client must possess required
knowledge and fulfil every requirement before transferring product towards the company. SOA
recommendation with respect to insurance product including life, income continuance, and
trauma insurance must also need to be considered before suggesting any insurance product to the
customer. This will lead to have rising of knowledge among the client regarding the product with
better decision making.
2. Advisor explanation with respect to financial products
Yes, the advisor of John Smith has made clear understanding with respect to the insurance
products. This is because as there are three options with regard to insurance in front of John
Smith in the form of term life insurance, trauma insurance and income protection. Along with
this it is also to be considered that these all insurance are having full life coverage. However,
with respect to advisor of John Smith it has made and complied full disclosure policy and explain
every terms and condition with regard to products as disclosure of superannuation contribution
while computing age in life insurance with a limit of $25000 a year. It also makes disclosed that
the income protection insurance is having a waiting period of 90 days. Likewise, advisor also
make present various other options in terms of Vanguard Index Australian Share funds with a
low cost brokerage. Advisor also make various recommendations in terms of explaining the
advantages of various options so that best decision can be taken. For example, investment in
VIASF with non-payment of commission and low operating cost. Thus, along with making
explanation of options advisor also make recommendations which shows that it has made clear
explanation regarding financial products to John Smith.

3. Successful completion of SOA
In order to complete its SOA process, John Smith need to carefully consider the various
information provided by advisor along with SOA recommendation in terms of investment of
$200000 in XYD capital stable funds and $200000 in XYD capital growth funds. This
distribution of investment will enable the Joh n Smith to take advantage of both the investment
and options. Thus, John Smith have to make decision with regard to acceptance of
recommendation of distributed investment and replacement of financial product fully or partially.
This will lead to appropriate investment as well as completion of SOA process. Thus, in order to
have completion of SOA process client along with considering the recommendation an
individual need to compare the product with the aspect of protection, automate and connection
(Khan and et.al., 2017). This means that if the investment in insurance will not meet these three
aspects then it will lead be of no worth to make investment and take insurance. Thus, measuring
the product with these aspects will also lead to have better decision making along with
considering advice of advisor.

REFERENCES
Books and journals
Hauptman, M. and Roper, B., 2017. Financial Advisor or Investment Salesperson?. Washington,
DC: Consumer Federation of America.
Khan, and et.al., 2017, May. Big data challenges and opportunities in the hype of Industry 4.0.
In 2017 IEEE International Conference on Communications (ICC) (pp. 1-6). IEEE.
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