Chartered Institute For Securities And Investment (CISI) Level 3 Practice Exam

Which statement correctly identifies the second stage of the financial planning process?

Determine the client's requirements Revisit the recommended investments Implement the strategy by selecting suitable products Formulate a strategy to meet the client's objectives

Correct Answer:

Formulate a strategy to meet the client's objectives

Explanation:

In the financial planning process, you start by understanding and agreeing what the client wants and needs, then you move to turning those objectives into a concrete plan. The second stage is formulating a strategy to meet the client's objectives because after you know the goals, the next step is to design an approach that shows how those goals can be achieved. This sets the path for later steps like selecting products and implementing the plan. The other activities occur at different times in the process: gathering the client’s requirements happens first to capture what they want; implementing the strategy by choosing suitable products comes after you’ve developed the plan; and revisiting the investments is part of ongoing review and monitoring.

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