IFSE - CIFC - Unit 3 questions with answers

IFSE - CIFC - Unit 3 questions with answers 6 steps of SIP (Strategic Investment Planning) process -Correct Answer-1. Establish the client engagement 2. Gather client data and identify objectives 3. Clarify client status, problems, and opportunities 4. Identify strategies and present the plan 5. Implement the plan 6. Monitor performance and update Step 1 SIP - Establish client engagement -Correct Answer-- your duties and responsibilities - your client's duties and responsibilities - the level of service you are offering - the agreed-upon fees that your client will pay for your services Once the Letter of Engagement is signed by both the client and yourself, it becomes a valid legal contract Step 2 SIP - Gather client data and identity objectives -Correct Answer-Based on info you collect, you and your client should work together to define, quantify and prioritize their personal and financial goals. Aka the KYC stage Step 3 SIP - Clarify client status, problems and opportunities -Correct Answer-Identify the client's current status and identify any constraints that might affect your client's ability to meet their goals Step 4 SIP - Identify strategies and present the plan -Correct Answer-The financial plan is based on basic and realistic assumptions about financial parameters such as: - inflation - income tax rates - interest rates - anticipated rates of return Step 6 SIP - Monitor performance and update -Correct Answer-Once the plan has been implemented, you need to monitor if the plan is performing as expected. If not, changes may need to be made to keep it on track. Also, you need to review any changes to the client's personal circumstances to see if any changes