As an independent financial adviser (IFA) within a large authorised firm, you have been asked by our manager to write a document which is to be given to trainee financial advisers at the end of a training day. Your manager has indicated that the focus of the training day is on the options which are available for clients who are wishing to arrange strategies to mitigate and / or pay for inheritance tax liabilities.
The document needs to provide an overview of the different types of options and arrangements which are available to assist private clients with their needs in this area, and all of the other considerations that a financial adviser would need to take into account when formulating a robust financial plan for clients in this important area.
It is expected that the main features of each option should be covered, and that the document should focus particularly on the financial planning elements of inheritance tax planning. Full details of the benefits and drawbacks of the options identified should be provided. Part of the brief is to create at least one case study within the document, so that the trainee financial advisers can demonstrate how such a financial plan would be developed ‘in the real world’ to meet a client’s need.
Your document should be presented in an appropriate style and should use appropriate technical language. The document should include any supporting calculations to underpin your considerations. You are required to provide a comprehensive discussion on the subject.
(75 marks maximum) – 60 marks are available for the content of the document and 15 marks are available for the communication and presentation style.
Note: Coursework responses for the Main Task must not exceed 4,000 words. The assignment has been developed to be answerable within this word count and words over this maximum will not be marked. If you quote from any sources in the Main Task, these will count towards the maximum word count. You should ensure that any quotes used conform to our exact referencing format.
Investments Short Answer Questions
State the main reasons that a client may consider making use of a discretionary fund manager to manage her investment portfolio.
State five advantages of a client investing in a unit trust rather than an onshore investment bond.
John is self employed and is considering incorporating his business. State the benefits of John proceeding with this course of action.
List the factors that an independent financial adviser should consider, when comparing providers of self-invested personal pensions, when formulating recommendations to individuals.