LLQP Segregated Funds & Annuities · Component 1.1 · 35% of the exam
A client's other advisors (accountant, lawyer) are relevant to the profile because:
- Coordination keeps the recommendation consistent with the tax and estate plan
- BThey are not relevant, since investment advice is the agent's domain and the others have their own
- CThey must approve every fund selected, since an agent cannot recommend without professional sign-off
- DThey set the fees on the contract, since the accountant negotiates the management expense ratio
Correct answer: A) Coordination keeps the recommendation consistent with the tax and estate plan
Holistic advice requires knowing the client's professional team, especially for estate and corporate matters.
Why the other options are wrong
- BCoordination improves outcomes and avoids conflicting advice.
- CThey do not approve funds; the agent is responsible for the recommendation.
- DFees are product-based and not negotiated by other advisors.
Exam tip
Know the client's other advisors; coordinate on tax and estate matters.
Common mistake
Recommending a corporate investment strategy without the accountant's input.
What this tests
CISRO competency component 1.1 — Assess the client's needs and situation — which is weighted at 35% of the Segregated Funds & Annuities module. Written against the published curriculum.
More from component 1
- The first step before recommending a segregated fund or annuity is to:
- A client's 'time horizon' for an investment is:
- 'Risk tolerance' in an investor profile refers to:
- A client says he wants 'high returns with no risk of losing money'. The agent should:
- Investment objectives are commonly classified as:
- Why is the client's marginal tax rate relevant to a segregated fund recommendation?
Practice the whole Segregated Funds & Annuities module
Timed sets weighted like the exam, and review of every question you miss. Free to start.