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Challenge questions for advice suitability

Tony Vidler has a series of challenge questions for advice suitability in this piece. His list is focused on an investment advice situation, below is my version, focused on an insurance advice situation. 

  1. Does the advice address the scope agreed between you and the client? 
  2. Did you gather sufficient information to ensure suitability?
  3. Is the advice consistent with evidence-based approaches or academic consensus about this problem?
  4. Is the advice, or recommendations, based upon research and analysis?
  5. Is the balance between risk retention and transfer consistent with client tolerance for risk?
  6. Does this take into account existing resources and/or insurance? If not, why not?
  7. Has client desire to either consume or maintain capital been considered? 
  8. What assumptions or calculations underpin it?
  9. is the ownership structure appropriate, and have all existing ownership entities been captured and considered?
  10. are their specific tax liabilities or advantages which are material to the recommendation? If so, what impact would a change in the taxation position have upon the recommendation?




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