Question

briefly provide your understanding to one of the practice standards in FPA Practice Standards

please state the name of the practice standards and your understanding

Answer 1

Ans. Its the 3rd practice standard in the list of seven practice standards.The 3rd standard is to analyse and assess client's financial status.It includes two things,first is to analyse client's information and second is to assess client's objective,needs and priorities.

Basically this practice standard is all about knowing your client's investing history,his/her experience in investing and based on his/her needs, plan their financial investment strategies.For example if the client is a retired employee then he will need regular income from his investments so the planner will put more money in Fixed income securities rather than in equities.

And if the investor is very young then he would invest his majority stake in more risky assets which might not ive regular income but has a very high probability of huge capital gains in long term.