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

1. Communicating with Clients - Video

Managing wealth is a people business and effective communication between clients and advisers is key to setting up a long and rewarding working relationship. This video asks leading practitioners for their views and opinions on:


2. Communicating with Clients - Selected Readings

Three external papers have been selected in this area:

'Behavioural Finance and Investor Types' by Michael Pompian (CFA Institute, 2012)

This concise and practical article shows how the different categories of clients can be identified by a wealth manager. The author highlights the fact that a number of portfolios are not working for the clients that own them because they do not match with their personality type. The article makes a strong case for the use of behavioural investor types [BITs] by wealth managers. Four key BITs are identified to categorise clients.

'The Behaviour Gap' by Carl Richards (CFA Institute, 2013)

This engaging paper identifies that there is a gap between the return that an investment generates and the return that an investor receives. This gap is described as the behaviour gap. It is suggested that this behaviour gap could be closed if clients could be encouraged to change their behaviour.

'The New Wealth Management' – Chapter 4: Risk is a Four Letter Word by Harold Evensky & Stephen Horan (CFA Institute, 2013)

Risk has been studied by some of the most illustrious names in the world of finance. A number of significant risk concepts are discussed with an emphasis placed upon how such ideas can be communicated to customers. The tolerance and capacity of an investor to bear risk are identified as being crucial as are the behavioural biases exhibited by clients. Using numerous examples, the author details how wealth advisors can develop a language to better communicate with and learn about the nature of their clients.


3. Communicating with Clients - 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. 

Communicating with Clients - Video
Communicating with Clients - Selected Readings
Communicating with Clients - Structured Assessment