Question 1 refers to the Adviser/Client Scenario 1 video which can be found in your subject room. You are required to watch this video and assess the interactions which take place to answer the following Questions

https://vimeo.com/690766368/9fd45786e1

1(a)-(f) using evidence from the video where required to support your discussion.

(a) Identify the key behavioural finance issue(s) presented in this scenario. Include in your response a brief definition of the issue(s). (4 marks)

(b) Provide evidence from the scenario to support your assessment. (4 marks)

(c) In the context of the scenario provided, discuss the consequences of the impact of this issue and how it may affect or influence the client-adviser relationship and the outcomes of the client engagement if the issue is not identified and addressed appropriately. (6 marks)

(d) Provide a brief discussion of steps/actions that could be taken to address or remedy the issues that have been identified. (4 marks)

(e) Discuss the communication approach the adviser has taken with the client. You should address the following questions in your response: Did the adviser show any evidence of their own bias in guiding the client as to what actions to take? What further investigations of the client's understanding and acceptance of risk could the adviser have undertaken? How has the adviser addressed the client's past losses and their concerns about the loss? What response is the client demonstrating to the adviser? (8 marks)

(f) Provide two (2) specific recommendations for how the adviser could better communicate with the client and improve their client engagement and outcomes. (4 marks)

 

Question 2 refers to the Adviser/Client Scenario 2 video which can be found in your subject room. You are required to watch this video and assess the interactions which take place to answer the following

https://vimeo.com/690770219/6cfde0765c

Questions 2(a)-(f) using evidence from the video where required to support your discussion.

(a) Identify the key behavioural finance issue presented in this scenario. Include in your response a brief definition of the issue. Note to students: the issue identified should be different to the one you selected in Question 1(a). (4 marks)

(b) Provide evidence from the scenario to support your assessment. (4 marks)

(c) In the context of the scenario provided, discuss the consequences of the impact of this issue and how it may affect or influence the client-adviser relationship and the outcomes of the client engagement if the issue is not identified and addressed appropriately. (6 marks)

(d) Provide an overview of steps/actions that could be taken to address or remedy the issues that have been identified. (4 marks)

(e) Discuss the communication approach the adviser has taken with the client and consider the following questions in your response: Did the adviser show any evidence of their own bias in guiding the client as to what actions to take? What further investigations of the client's position, including their risk profile, could the adviser have undertaken in the meeting? How has the adviser addressed the client's concerns, particularly in relation to the pension issue? What response is the client demonstrating to the adviser? (8 marks)

(f) Provide two (2) specific recommendations for how the adviser could better communicate with the client. (4 marks)