GENC3004 Personal Finance: Adviser Engagement Analysis & Practices

This report analyzes the engagement between financial advisors and clients, focusing on identifying good and bad practices within this interaction. It emphasizes the importance of financial literacy for advisors, enabling them to assess investment opportunities based on client objectives and risk tolerance. The report also explores the ethical considerations and the significance of building trust between advisors and clients, highlighting how transparency, effective communication, and personalized financial planning contribute to successful client relationships. By examining specific scenarios and examples, the report provides insights into how advisors can optimize their service delivery and ensure client satisfaction while adhering to ethical standards and regulatory requirements. The analysis draws on the statements of Jeremy and Tristan, providing a comprehensive view of practical strategies for building trust and fostering positive client-advisor relationships.

GENC3004 Personal Finance 22T0
Adviser Engagement
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Question 2 Replace this text with your Question 2 word count.
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☒ This assessment is my own work and has not been done in collaboration with anyone
else.

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TABLE OF CONTENTS
QUESTION 1......................................................................................................................... 3
QUESTION 2......................................................................................................................... 5
REFERENCES.......................................................................................................................8

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QUESTION 1
Financial activities are highly important for analysing important factors that can
allow to achieve profitability and stability. There are several objectives that are
required to be accomplished by investor from an investment so that higher positive
outcome can be derived. For this purpose, there is requirement of financial adviser
so that significant ability to incline the opportunities which may help in having
desirable outcome. It is central for the financial adviser to gain the appropriate set of
skills which can permit to evaluate operational efficiency, risk, return and other factors
of an investment. Financial literacy plays significant role in examining the investment
as per the particular client’s objective and situation so that suitable outcome can be
offered.
Financial literacy comprises number of component that make adviser capable
of understanding each and every tactic which can encourage profitability and affect
risk to investment (Moosa, 2021). It helps in attaining ability to ascertain potential
return providing capacity of investment that aids in determining suitability to objective
of particular client. Financial literacy of advisor is the one of the crucial reason for
which client connects with such services providers in turn meeting goals can become
possible. There are several good and bad practise that are exerted by advisor has
respectively influence client perception regarding service quality offered by advisor.
In addition to this, tolerance of risk possessed by client is important to be evaluated
so that proper level of functioning & selection of investment for achieving objectives
can be done by advisor.
There are few other purposes for which client connects with advisor so that
their situational analysis with adequate level of knowledge for making possible to
take the diverse decision. Converting the goal of particular investment into
measurable, specific, comparable, etc. kind of manner can be exerting by these
advisors in effective pattern which inclines the opportunity to deal with prevailing
complexity. Conducting personalized financial plan so that effective accomplishment
of goals such as maximizing profitability & wealth by focusing on saving, budget,
insurance and tax strategies continuously evaluating the credibility and personal
situation of client is done by advisor. It helps in gaining beneficial results for the user

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to reason of investing. Clients do not have time to evaluate investment option on
daily basis and may not be able to ascertain how effectively the particular investment
can function & offer risk to him. For this reason, client pay attention on advice
given by financial advisor as he possesses sufficient insights about techniques of
evaluating suitable option and suggesting right time to invest or withdrawal of funds.
It helps in grabbing the opportunity which is capable of covering higher market
profitability. This can aid in declining loss providing circumstances through taking
suitable & crucial steps. Best interest of customer refers the situation in which
maximum profitability along with eliminating and mitigating risk in order to achieve
the organizational objectives. On the basis of this it can be identified that eliminating
personal benefit which can impact objective of client is one of the part of good
practice. It can be conducted by disregarding non crucial practicing by identifying
good and bad practice for ensuring optimum utilization of funds without thinking of
personal commission as it may negatively influence position in market and adverse
influence career. It becomes essential to focus on having understanding regrading
good and bad practices which can be understand with help of this.
From the assessment of given details by Tristan that there are several skills
which are crucial as being financial advisor that involve effective communication,
building clarity & relationship possessing. there are several situations which has
been identified through evaluating the given information such as discovery, strategy
scenarios, annual progress meeting and other factors. In the strategy scenario bad
tactics has been highlighted such as not being professional, Improper concentration
on client requirements and lack of listening and lack of understanding of client
objectives details. In addition to this, good practices that has been evaluated such
making clients comfortable, trust & faith building approach, higher patience, etc.
On the basis of given examples of scenario given by Jeremy that has helped
in understanding good and bad practices. In the initial meeting the good practices
that has been identified I which are recognizing the family & financial background of
client, literacy of client. In contrast to this, bad sights not being properly informed
about client’s details can result in building non effective impression. In the strategy
meeting the good side that been recognized is gaining & offering accurate insights
about particular option expected return. On the other side, not being transparent and
making customer confused, etc can lead to impact negatively on customers. In the

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statement of advice there is proper concentration on offering suggestion on the basis
of information gathered from client about personal financials. On the basis of this it
can be identified that good practices are helpful for advisor whereas bas action can
harm its ability of offering service.
QUESTION 2
Financial services are taken by clients for achieving the aptitude to coordinate
with the requirements of business so that significant level of results can be attained.
To become successful while making crucial investment, client focus on evaluating
proper kind of tactics possessed by financial advisor who can accomplish the
objective with maintaining substantial ethical practices (Dimmock, Gerken and Van
Alfen, 2021). Financial resources are crucial for people so that they tend to make
depth analysis of parties associated with particular transaction. Financial advisor is
one of the substantial party that user deals while making investing so estimating
each and every aspect which can influence his ethical implementation is assessed to
have proper understanding about his personal traits .
For this purpose, several courses of action are taken by financial advisor so
that proper approach to build trust among investors such as clients via establishing
greater amount of transparency. The main reason behind building trustworthiness is
to gain sufficient information regarding the prevailing situation of client to offer them
highly suitable kind of service in turn better productive outcome can be produced.
Financial advisor can only get the true insights related financial stability, personal
requirement & preferences, risk tolerance capacity, etc. information when there is
appropriate level of trust. In addition to this, it aids in having higher understanding of
client expectations from the transaction. On the basis of this, it can be interpreted
that there are various reasons for which building effective trust based relationship
between financial advisor & client is important.
Financial planning process involves few steps that include building trust with
client as offered advice can only be useful when user is ready to move forward with
this step. For building the trust, financial advisor has to take few crucial steps so that
weighty level of approach to accomplish tenacity of offering service can become

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possible. It includes listening, skipping jargon, avoiding false commitment making,
responding properly, enhancing values and such similar activities. It aids in
attaining clarity so that ensuring transparency and effectiveness in respect to
conducting the transaction can become possible. In addition to this, there are
various of components which are boost by advisor to incline ability of customers
keeping trust on the service provided by him.
Having trust permits to obtain higher level of feasibility & flexibility in
transaction which provides assistance in achieving better performance. In absence
of trust, between both the mentioned parties there is possibilities of arising several
types of complications which can impact the functioning as financial advisor
(Bragança, and Bleier, 2021.). There are number of course of action which aids to
influence the processing as advisor that include arising of any legal complications
such as non-accurate service offering, improper deed of commission & fees,
misleading possessing of personal confidential information, etc. These kind of
allegations can be imposed by client in absence of trust which might increase the
complications and impact the working as financial advisor. With respect to this, it
becomes essential for him to evaluate the factor that can increase trustworthiness so
that higher profitable and credible situation can be made.
There are number of ways which can be taken into consideration by financial
advisor to build trust among its clients. Making proper deed for the conducted
transactions, keeping significant communication method transparent, having
effectual records of previous data and enabling personal information encrypted are
few methods. The course of action which can influence processing by harming the
build trust is indulging into any illegal activity, bad customer service, non-regular
updates, etc. In addition to this, improper management of given fund, miss utilization
of resource, noncompliance with market tends and other components (Nugrahani
and Suraji, 2022). These can adversely impact the steps taken to build the effective
approach to influence the functioning of the company.
The crucial steps that has been taken by Jeremy and Tristan for building the
trust is making client comfortable, asking them about their personal information,
understanding requirement of investment and ensuring that two way
communication with concentration has been build. This can be understand by

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example that Jeremy has given emphasis on understanding personal background of
client (Fiona) and history of investment possessed so that accurate advised can be
offered. It can be said that Jeremy has become friendly by asking how was Fiona
birthday celebration that has allowed to her to get comfortable. From the evaluation
of Jeremy and Tristan statements, it can be said that creating appropriate level of
trustworthiness become possible by ensuring transparency, eliminating misleading
guidelines, insignificant utilization and involvement of non-suitable transaction,
charging accurate commission & fees & proper guidelines of pros and cons of
related transactions can influence.
On the basis of this, it can be specified that these can help in achieving the
ability to coordinate with requirements of clients with implementation of appropriate
strategies. With help of given information by both mentioned Jeremy and Tristan, it
is identified that there are several course of action which are applied by these for
gaining trust. These practices include making client comfortable, understanding their
requirement, personal history and financial background, offering adequate &
précised information to them, etc. are the action that are taken for building trust.

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REFERENCES
Books and Journals
Bragança, C.P. and Bleier, L.J., 2021. Perspectives from Financial Institutions. Aging
and Money: Reducing Risk of Financial Exploitation and Protecting Financial
Resources. pp.113-122.
Dimmock, S.G., Gerken, W.C. and Van Alfen, T., 2021. Real estate shocks and
financial advisor misconduct. The Journal of Finance. 76(6). pp.3309-3346.
Moosa, A., 2021. The cost and value-add of using a financial advisor (Master's
thesis, Faculty of Commerce).
Nugrahani, A. and Suraji, S., 2022. Legal Problems of the Financial Planner
Profession in Indonesia. International Journal of Multicultural and Multireligious
Understanding. 8(11). pp.669-678.