LLQP Segregated Funds & Annuities · Component 1.3 · 35% of the exam
The needs analysis for segregated funds and annuities should be documented with:
- AThe insurer's brochure and fund facts for the products the client is likely to buy
- BA verbal summary confirmed with the client, since written needs analyses date quickly
- CThe product name and amount only, since the KYC form already records the client's profile
- The income gap, the risks identified, the client's priorities, and the features required
Correct answer: D) The income gap, the risks identified, the client's priorities, and the features required
The articulated needs are the bridge from profile to product. Regulators expect this reasoning to be on file.
Why the other options are wrong
- ABrochures are marketing, not analysis.
- BDocumentation is required.
- CThe product without the reasoning is unjustifiable.
Exam tip
Document gap, risks, priorities, required features.
Common mistake
Filing a KYC form without a needs statement.
What this tests
CISRO competency component 1.3 — 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
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