This study session consists of three parts. On completion of the video, selected readings and structured assessment, 2 hours of structured CPD will enter into your CPD log.

1. Creating a Client Specific Plan - Video

Creating a client specific plan requires understanding the client's objectives, risk considerations, time horizons and how performance is to be measured. This video asks leading practitioners for their views and opinions on:


2. Creating a Client Specific Plan - Selected Readings

Three external papers have been selected in this area:

'Investment Policy Statement' (CFA Institute, 2007)

This detailed examination of the Investment Policy Statement highlights not only the significant factors which make it up, but also the benefits for both advisor and client. Objectives are broken down into the return objective and the risk objective which itself breaks down into the ability and willingness to take risk. Constraints are divided into liquidity, time horizon, taxes, legal and regulatory environment and unique circumstances.

'Lifetime Financial Advice: Human Capital, Asset Allocation and Insurance' Section 7: Summary & Implications, by Roger Ibbotson, Moshe Milevsky, Peng Chen, Kevin F. Zhu (CFA Institute, 2007)

The importance of incorporating human capital into any asset allocation process is highlighted by this reading. Based upon modelled personal situations the reading details how life insurance, equities, bonds and annuity products can all form part of a well-designed portfolio at different stages of an investor’s life.

'Goals-Based Wealth Management in Practice' by Jean Brunel (CFA Institute, 2012)

The question of whether a wealth manager can improve their service by considering an individual’s goals beyond a simple consideration of their financial wealth is examined in this reading. The process of ‘integrated wealth planning’ which is outlined here looks at the different goals that an investor might have and structures a behavioural finance portfolio pyramid to examine the relative significance of each goal.


3. Creating a Client Specific Plan  - Structured Assessment

The assessment consists of 10 questions and requires a pass score of 70% to be obtained. The test must be passed in the first two attempts in order to successfully complete this study session and for the learning to log as structured learning. 

Creating a Client Specific Plan - Video
Creating a Client Specific Plan - Selected Readings
Creating a Client Specific Plan - Structured Assessment