LLQP Segregated Funds & Annuities · Component 1.1 · 35% of the exam
The output of the situation analysis and profiling step should be:
- AA fund brochure and fund facts document for the product the client is most likely to buy
- A documented profile of situation, ranked objectives, horizon, tolerance, knowledge and constraints
- CA completed product order, since the analysis exists to identify the right contract to sign
- DA verbal understanding between agent and client, since written profiles quickly go out of date
Correct answer: B) A documented profile of situation, ranked objectives, horizon, tolerance, knowledge and constraints
The profile is the benchmark for suitability. Everything recommended later must reconcile to it.
Why the other options are wrong
- ABrochures are marketing, not a record of the client.
- CProducts come after analysis, not as its output.
- DDocumentation is required and must be updated, not avoided.
Exam tip
Profile output: documented objectives, horizon, tolerance, knowledge, constraints.
Common mistake
Moving to product selection without a written profile.
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.