SESSION OVERVIEW:

This module will look at the role of the advisor in managing client expectations when significant events occur in the advisor's business, for example a transition from a commission-based model to a fee-based model or from a senior advisor to a new advisor. What are the key issues to be proactively addressed and what steps should be taken to preserve relationships with all the stakeholders to a successful plan? How is this model impacted by the significant economic events of 2020?

APPROACH:

Sound choices must be made to ensure that the client's financial plan and the portfolio is not interrupted in time of transition in the advisor's business. What is the best way to ensure all the client's concerns are addressed? Usually the best approach is to refer back to client-based objectives, the Know Your Client documentation and the investment selections that best accomplish the client's goals.

WHAT YOU WILL LEARN:

• What are the choices investors need to make when an advisor transitions their business model?
• What are the guidelines to be discussed relating to the performance of a portfolio net of various compensation structures including commissions and management fees?
• What are the tax implications of these fees as investment returns are earned, and also on redemption?

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.