Financial Planning: Fact-Find Questionnaires and Behavioral Finance

This report delves into the core principles of financial planning, emphasizing the preparation and utilization of fact-find questionnaires and the application of behavioral finance theories. The first task focuses on the development of a fact-find questionnaire, its significance in gathering client information, and its practical application in investment portfolio construction. The report also examines key regulatory requirements associated with client meetings. The second task explores the relevance of behavioral finance theories from both client and financial planner perspectives, analyzing how these theories influence investment decisions and portfolio management strategies. The report concludes by highlighting the importance of these tools in creating effective financial plans and optimizing investment outcomes. The report also provides a sample questionnaire from Partner Financial Group and evaluates its effectiveness.

Financial Planning Practice

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Fact find questionnaire for the meeting:......................................................................................3
Key regulatory requirements are for this meeting:......................................................................5
Facts to be included in fact find questionnaire:...........................................................................5
Manner to use fact-find questionnaire and analyzing its importance in Financial planning:......6
Selecting a fact find questionnaire form a company and evaluating its significance in financial
planning:......................................................................................................................................6
TASK 2............................................................................................................................................9
Relevance of behaviour theories of finance from perspectives of clients & financial planner
and how these theories apply in process of financial planning:..................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The framework of forecasting capital required as well as identifying best investment
alternative is known as financial planning. It is method of developing financial policies with
respect to an entity's acquisition, expenditure and management of funds. As a financial planner,
financial planning is process to assist clients in making decision about investment and
developing an optimum risk portfolio for client (Lawson and Klontz, 2017). The study covers
two task, the first task covers preparation of fact-find questionnaire, its importance and use.
While second task covers major behavioural finance theories from the perspective of clients and
financial planner.
TASK 1
Fact find questionnaire for the meeting:
Investment Time Horizon:
1. From what age group you belong to?
A. 56 and over
B. 46 – 55
C. 36 – 45
D. 20 – 35
2. What is key financial goal or objective?
A. Wealth’s preservation
B. Planning forRetirement
C. Wealth’s accumulations
3. Time frame within which you want to attain financial objectives?
A. 0 – 5 years
B. 5 – 10 years
C. 10 years or longer
Financial Goals:
1. From following which option effectively describes predefined financial goals?
A. Preservation of principal as well as earning moderate sum of income.
B. Making a higher sum of income
C. Generating certain income and expanding assets over specific extended time period

D. Expanding assets significantly over extended time period
2. What is your expectations regarding living standard 5 years from current situation
as compare to today’s living standard?
A. Lower than today
B. Same as this is presently
C. Somewhat greater than this is presently
D. Significantly higher than this is presently
3. After 5 years, what your expectations about your portfolio’s value:
A. Portfolio’s value isn’t main concern; I ‘m mainly concerned about current income.
B. This will same as or even somewhat more than this is presently
C. Higher than this is presently.
D. Significantly higher than this is presently.
Risk Tolerance:
1. Which investments in your perspective is most comfortable retaining?
A. Deposit Certificates
B. Governmental securities
C. Blue-chip shares/stocks
D. Stocks/shares of new growing corporations
2. To what extent optimistic you are regarding longer-term prospects for country
economy?
A. Unsure
B. Somewhat optimistic
C. Very pessimistic
D. Very optimistic
3. Suppose you have receipt of windfall amounting £ 50,000. In which manner you will
invest this?
A. I will make investment in something which offers moderate level income as well as quite
conservative.
B. I will make investment in something which offers higher level income along with
medium level of risk.
C. I will make investment in something which offers higher aggregate return (current

income along with capital fund appreciation) together with moderate higher level of risk.
D. I will choose to make investment in something which offers significant capital fund
appreciation however this has higher level risk.
Key regulatory requirements are for this meeting:
Following are major requirements for meeting with client as financial planner:
Requirement under-
Financial Services & Markets Act 2000: Autonomous Financial Advisers are needed to have
legitimate respect for a customer's eventual benefits in any exhortation given. They should thusly
do their most extreme to guarantee that they know about your own and monetary conditions so
their recommendation is the most reasonable for your necessities. The inquiries here have been
explicitly intended to assist your counsel with giving guidance that addresses your issues. On the
off chance that, in any way, shape or form, you decay to answer any or the entirety of the
inquiries or on the off chance that you neglect to give valid and exact data to the most amazing
aspect your insight, the recommendation offered in this manner may not be best guidance, as it
must be founded on the data/information given (Dalton, Gillice, Dalton and Langdon, 2019).
Data Protection Act 1998: The details given in this questionnaire will be held on PC for
reference purposes and will be preserved as per the Data Protection Act 1998.
Facts to be included in fact find questionnaire:
In a fact finding questionnaire, initially facts about investment time horizon is to be
included which provide general details like age, goals and interest of client. Facts about client’s
Financial goals are most critical and valuable aspect in questionnaire which help to determine
financial position of client, their key requirements and his/her perspective about prospective
portfolio. Moreover, facts regarding risk tolerance level (like their most preferred investment
source, views on country’s economy, financial market knowledge etc.) of client must be included
in questionnaire to determine to what extent they are aware about current market position as well
as to what extent client can tolerate risk which may occur due to exceptional circumstances.
Manner to use fact-find questionnaire and analyzing its importance in Financial planning:
Fact-find questioner used as tool to collect all the key information of client to recognize the best
options of investments for clients as well as to build investment portfolio. Questionnaire is given

to client which contains generally multiple alternatives in answer different questions. Client then
fill the questionnaire with best of their knowledge. In financial planning this is most crucial for
company to gather detailed information of client since such information is key to make an
effective portfolio. In financial planning, the questionnaire filled by client provides information
about current financial status, their current investments, expectations with prospective portfolio,
personal objectives, income sources, risk-bearing level etc. which is required in developing an
effective investment portfolio. All this collected information from questionnaire help to develop
financial plan for a specific client since this is not a good practice to make a common financial
plan for all clients while ignoring all relevant facts (Nekhaychuk, Nogas, Nekhaychuk and
Dzhelilov, 2019).
Selecting a fact find questionnaire form a company and evaluating its significance in financial
planning:
Sample questionnaire of financial planning company Partner Financial Group (Client
Questionnaire (Fact Finder): Partner Financial Group. 2019):

Form the evaluation of Partner Financial Group’s fact find questionnaire, this has been
ascertained that questionnaire is quite detailed and comprehensive. It covers multiple fact about
prospective investment portfolio, client’s preferences, term of investment, risk taking level for
client and their knowledge about financial market. The questionnaire covers all most all the
required facts as well details to be gathered form client. But one key change that is required in
this questionnaire is regarding length of options provided to client in questionnaire. Sometime
this kind of lengthy options can irritate client. Thus, here company should try to make option
more attractive and short for better understanding and quick response.
TASK 2
Relevance of behaviour theories of finance from perspectives of clients & financial planner and
how these theories apply in process of financial planning:
Behaviour finance, is the term which used to measure or evaluate behaviour of investor during
the time of investing their capital. There are various theories implement which define different
aspect of behaviour of financial planner as well as clients. Theses theory is related with how
investors psychology behaviour affect by changing scenario of market, are define in systematic
manner.
Importance of behaviour finance theory as per finance planner perspective:
On the basis of evaluating and measuring all the essential behaviour theory financial
planner able to understand requirement and needs of clients, which includes anticipating needs.
They monitor and behaviour and needs of clients, which help in maintain and build strong
relation with customer.
Financial planner uses these theories to measure financial performance of organization as
well as review overall business environment and on the basis of that financial planner formulate
business strategies which help in successfully maintain organization's position in market.
These approaches useful in integrate wealth manager approach on the basis of that
financial planner able to increase higher return of securities (Kapoor and Prosad, 2017).
Financial behaviour those are useful in increase knowledge of planer as well as enhance
their skill through which they are able to take effective business decision.

On the basis of reviewing prospective of investors financial planner able to determine to
take decision regarding which portfolio of securities is useful and beneficial for their
organization through which they are able to minimize theory cost increase their rate of return.
Behaviour finance theories are useful in order to maintain position of organization and
ethically implement all the norms which are relevant during the time of taking decision regarding
with investment.
Importance of behaviour finance theory as per clients’ perspective:
Theses theory is based on the concept is that investor’s take decision they are not rational
rather they took their decision on emotional perspective. Following are the relevance of these
theories regarding with client:
These theories help in evaluating accurate value of share or securities as well as
difference between expectation and real value of securities.
These theories help client to find out which portfolio is beneficial and given them more
profit when they invest their capital in different securities (Virigineni and Rao, 2017).
With the use of behaviour those of finance client table to understand perspective of
financial planner as well as their point of value their strategy regarding how they attract client.
Financial practices help in enhance experience and ability to understand norms of financial
market in effective manner.
CONCLUSION
From above study this has been analysed that financial planning is curial for making
investment decision and forming an efficient lower risk investment portfolio. Financial planning
is generally used for long term goals and targets. Fact-find questionnaire is base for financial
planning as it offers critical evaluation of facts related to client.

REFERENCES
Books and Journals:
Lawson, D.R. and Klontz, B.T., 2017. Integrating behavioral finance, financial psychology, and
financial therapy into the 6-step financial planning process. Journal of Financial
Planning, 30(7), pp.48-55.
Dalton, M.A., Gillice, J.M., Dalton, J.F. and Langdon, T.P., 2019. Fundamentals of Financial
Planning. Metairie, LA: Money Education.
Nekhaychuk, D., Nogas, I., Nekhaychuk, E. and Dzhelilov, A., 2019, June. The financial
planning and its tasks in modern models of enterprise management. In Volgograd State
University International Scientific Conference" Competitive, Sustainable and Safe
Development of the Regional Economy"(CSSDRE 2019) (pp. 38-41). Atlantis Press.
Kapoor, S. and Prosad, J.M., 2017. Behavioural finance: A review. Procedia computer
science, 122, pp.50-54.
Virigineni, M. and Rao, M.B., 2017. Contemporary developments in behavioural
finance. International Journal of Economics and Financial Issues, 7(1).
Online:
Client Questionnaire (Fact Finder): Partner Financial Group. 2019. [Online]. Available at:
<http://partnerfinancialgroup.com.au/wp-content/uploads/Fact-Finder_Final1>