About This Chapter
Obtaining Customer Investment Profile Information - Chapter Summary
Working through these lessons is a convenient way to deepen your knowledge of obtaining customer investment profile information. Instructors discuss reasonable-basis, customer-specific, and quantitative suitability. This interactive chapter will ensure you understand how financial professionals provide investment strategies to their customers. After completing the chapter, you should feel confident and ready to:
- Recount strategies used to gather customer investment profile information
- Discuss financial and personal factors used to assess investment profiles
- Explain how to identify a customer's investment objectives
- Provide an overview of FINRA Rule 2111
- Detail how a financial professional can provide a recommendation to hold an investment
- Outline customer-specific factors that impact investment product selections
The teaching style of our professional instructors is engaging and simplifies the learning process as you increase what you know about obtaining customer investment profile information. A brief quiz is provided for each lesson to confirm that you understand and can recall important information. Optimize use of this resource by printing the quiz in worksheet form to use as a helpful study guide.
1. Using Financial Factors to Assess Investment Profiles
The first step of any successful financial plan is an accurate investment profile. Investors often have current assets and liabilities and face specific tax situations. This lesson covers the five factors critical to developing an investment profile.
2. Using Personal Factors to Assess Investment Profiles
In this lesson, you will learn the important information regarding personal factors to gather from clients in order to assess their investment profiles and meet the relevant regulations.
3. Understanding & Identifying Investment Objectives
Imagine that you graduated from college, started a great job, and at 25 years old were ready to ride out the inevitable ups and downs of the stock market. Now you are 55 and far more aware of the reality of eventual retirement and asking yourself if you could afford another recession like the one in 2008. You are not alone. In this lesson, we will examine different investment objectives we face as we navigate life.
4. FINRA Rule 2111: Suitability Obligations
Financial professionals are required to invest customers' money in appropriate investments. But what does this mean? This lesson will look closely at FINRA Rule 2111, which covers suitability of investments.
5. How Customer-Specific Factors Impact Investment Choices
Financial plans should start by identifying factors that impact the selection of investment products. We will discuss the customer's investment profile, including risk tolerance, time horizon, investment objectives, and liquidity needs.
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Other chapters within the Series 6 Exam: Study Guide & Practice course
- Financial Advertising & Communications With the Public
- Describing Investment Products & Services
- Disclosing Financial Account Types & Restrictions
- Understanding Retirement Plans & Tax Advantaged Accounts
- Obtaining Basic Customer Information & Documentation
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Investment Portfolios & Financial Statements
- Types of Underlying Securities
- Understanding Funds, Trusts & Investment Companies
- Understanding Municipal Fund Securities
- Variable Life Insurance & Annuity Contracts
- Tax Treatment of Investment Profiles
- Disclosing Investment Product Information
- Updating Investment Customers & Retaining Customer Records
- Processing & Confirming Financial Transactions
- Resolving Investment Disputes & Customer Complaints