Developing Strategies, Presenting Recommendations & Reviewing Portfolios
Concept
After the diagnosis, the adviser designs solutions matched to the client's needs, risk profile and time horizon, presents them clearly and honestly, and reviews them over time. Both the recommendation and the ongoing review are professional duties — the sale is a milestone, not the finish line.
Key rules & facts
- Develop strategy: match products to identified needs, respecting the risk profile and investment horizon; prioritise within budget (protection and emergency fund before growth).
- Establish a reasonable basis / suitability for each recommendation and document why each product fits.
- Present: clearly and in a balanced way — features, benefits, risks, fees and charges, and guaranteed vs non-guaranteed elements; hand over disclosure documents (e.g. Product Highlights Sheet / Bundled Product Disclosure) and give the client time to decide.
- Document the recommendation and the reasons behind it.
- Review: conduct periodic reviews and reviews triggered by life events (marriage, new child, job/income change, retirement); reassess needs, risk profile and continued suitability.
- Switching on review must be justified in the client's interest, with costs, penalties and lost benefits fully disclosed — never done to generate commission (twisting/churning).
Stages of presenting & reviewing
| Stage | Adviser's focus | Watch-outs |
|---|---|---|
| Develop | Match need → product; prioritise within budget | Ignoring horizon/risk profile |
| Present | Balanced disclosure: benefits and risks, fees, guaranteed vs non-guaranteed | Selling only the upside |
| Decide | Give disclosure docs + time; confirm understanding | Pressure/rushing the client |
| Implement | Complete application; deliver documents | Poor record-keeping |
| Review | Periodic + life-event triggered reassessment | Treating the sale as the end |
| Switch (if any) | Justify in client interest; disclose costs/penalties | Commission-driven switching = twisting |
Balanced presentation checklist
| Must be disclosed | Why |
|---|---|
| Benefits & features | So the client sees the value |
| Risks & limitations | So expectations are realistic |
| Fees & charges | Affect net returns |
| Guaranteed vs non-guaranteed | Projected values are not promises |
| Penalties on early surrender/switch | Affects true cost of decisions |
Exam angle
The logical flow (needs → matched solution → clear presentation → review); recognising a balanced presentation; and knowing when/why to review or switch — and when a "review" is really churning/twisting.
⚠ The trap
Treating the sale as the finish line (no review), presenting only the upside, or dressing up a commission-driven switch as a "portfolio review."
Takeaway
Match to needs, present the full picture (risks and fees included), then keep reviewing — and only switch when it genuinely benefits the client.
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