Clients look to financial service providers to provide them with financial advice solutions. This task requires you to apply what you have learned about the financial markets, systems, participants, services and products, to identify a suitable financial advice product or solution based on the scenario provided.

Note that your solutions are only required to be generic and you are NOT required to identify specific products or provider.

For each scenario given in the table below:

• identify a suitable financial advice solution(s);
• explain why you have chosen that solution(s), and 
• list who/what entity would be able to assist the client and would be involved.

An example has been provided for you.

 

Scenario	Financial advice product or solution(s)	Reasoning behind selected solution	Who/what entity will be able to assist and/or would be involved?
Sonya has finished university and is now working full time and wants to know the best way to save for a deposit on her first house.	Enrol in a KiwiSaver Scheme.	Employer and government contributions help the balance to grow. Wide range of investment options so can choose one based on risk profile and time frame in which wants to buy a house. Locked-in so cannot be used for other things.  First home deposit subsidy can help towards deposit after number of years of membership. May qualify for Welcome home loan subject to meeting terms and conditions.	Financial adviser. Her employer, with enrolment. KiwiSaver Scheme provider. Inland Revenue, to ensure the correct PIR rate and to receive funds for on payment to KiwiSaver Scheme provider.
Sally has recently bought her first home. She has taken out a mortgage. She has no insurance cover. She wants to protect her house and ensure she can cover her mortgage.
Hone receives an inheritance of $1,000,000. He decides he wants to invest it and receive a regular income. He knows little about investing and has little time to commit to understanding financial markets or managing the paperwork.
Ali has saved $20,000 and is keen to get started investing. He has come to you for advice but wants to be able to 'DIY' his investments and is most keen on investing directly where he has control.
Xue heard the OCR has dropped and wants to buy her first home, having been saving for a few years. She thinks she has enough saved but wants help to see what she might be able to buy, based on the mortgage pre-approval.
Jane's mother is requiring surgery for her hip and she is horrified at the 18-month waiting list.  Jane wants to avoid being in the same situation.
Andrei and Tonya are 75 years old and comfortably living off their investments.  They want to ensure that when they pass, their property and investments are split evenly between their children but protected so that the grandchildren will benefit the most.