What can you expect when you meet with one of Bank of Ireland’s qualified financial advisors? Well first of all, your specific needs are at the heart of the process that all Advisors must follow.
There are 5 steps that each Financial Advisor must go through, both to meet regulatory requirements and to deliver quality advice to you, our customer.
Step 1. Take the time to understand your circumstances and goals
Advisors need to have a thorough understanding of your unique circumstances, financial goals, tolerance for risk and capacity to take risks. Your goals will include financial and lifestyle objectives such as owning a home or saving for retirement.
Risk tolerance is an important factor that the Advisor must assess and take into account. Where couples are involved, the Advisor needs to know the risk tolerance of each person, as the financial plan impacts you both. Effective risk profiling is a key contributor to ensuring the advice provided is both suitable and appropriate.
Step 2. Consider different financial behaviours and strategies
In some cases, you may not be able to achieve your goals with the financial resources that you have available. Consequently, Advisors must explore alternatives with you and the possibility of achieving goals through different means.
It is important to evaluate all of your options by following the Hierarchy of Financial Needs. This way, important options such as managing your expenses and budget, building up a ‘rainy day’ fund paying-off expensive personal debt, family and income protection, paying off your mortgage, and investing tax-efficiently through pensions are all explored.
You will then be in a better position to make the trade-off decisions between these options according to your preferences and values. The Advisor is there to inform and guide these choices.
Step 3. Explain the products and services being recommended
Once you have decided on the appropriate solutions for you, the Advisor will take time to outline the features, benefits, costs and charges of the proposed product or fund solution. Importantly, the Advisor will explain product details in language that you can understand – completely removing jargon and technical terms.
Step 4. Explain the risks inherent in the products being recommended
The Advisor will explain the risks associated with the individual services, investments and products. The Advisor will ensure that you have reasonable expectations of the type of investment returns achievable. They will focus, in particular, on the potential downside risk to the investment fund or portfolio.
Step 5. Document your consent to accept the risks explained
Having outlined the risks involved in the financial recommendation, the Advisor will need a written instruction from you to proceed. This will confirm that the terms and risks have been fully explained to you and that you accept those terms.
Summary
By following these five steps, our Advisors can stand over the quality of the financial advice provided and ensure that it meets your specific needs.
