This article provides a step-by-step guide as to how you can quickly and easily write a brief and concise report to a client confirming your recommendations to switch the underlying investments of an existing investment or pension plan.
1) Select or add the client
Go to write / view report and select or add the client to whom you wish to write the report.
2) Create the report
In the Report Details, give the report a name and select the report type. If you're only recommending a fund switch then we'd suggest you use the Fund Switch report type. However, it is also possible to recommend a fund switch in a Suitability Report, Review Report 2.0, Top-up / Bed & ISA Report or Review Report 1.0.
3) Add the required advice sections
You’ll then be directed to the Report Builder where you should add the necessary sections from the 'sections' drop down, which in this case will be the
- Relevant review section(s)
- Recommended Investment Strategy section
3) Complete all section wizards
Next you'll need to step through the section wizards of all of the sections that require your input, starting with the Introduction Section.
4) Complete the Introduction Section
It's here that you'll be prompted to provide an update on the client's circumstances and a review of their attitude to risk.
5) Complete the review section
You’ll be prompted to provide some basic information regarding the existing investment / pension within the Plan Summary step of the review section. As a bare minimum you should include some basic policy details e.g. provider name, policy number etc and complete the Current Fund Value £ field.
Remember you do not have to enter a value for all fields. Empty columns will not be included within your report.
You will also need to include details of the plan's Current Investment Strategy.
In the Recommended Action step, you will need to confirm what action you are recommending in respect to the plan, which in this case could be:
- switch the underlying investments of (i.e. an internal fund switch); or
- switch the model portfolio of; or
- rebalance the existing portfolio of; or something similar.
You’ll then be prompted to confirm the reasons for, and any disadvantages associated with your recommended action. With the exception of rebalancing, the selection of these recommended actions will also trigger the Plan Comparison: Investment Strategy Charges and Plan Comparison - Performance steps in the review section. It's in these steps that you'll be prompted to compare the impact of the charges and the past performance of the existing and the new investment strategy you're recommending (in line with FCA best practice).
6) Complete the Investment Strategy section
It's within this section that you can include details of the new investment strategy(s) being recommended. There are 3 ways to create the new investment strategy:
a. Clone a Current Investment Strategy you've previously created in a review section of this report.
This is particularly useful if the revised investment strategy you're recommending is broadly similar to the plan's current investment strategy (i.e. a couple of fund may have changed) as you wont need to re-key all the data again. To clone a current investment click on the clone current investment strategy button above the investment strategy table.
You'll be directed to a new page where you'll see all of the current investment strategies that you've created in this report.
Select the current investment strategy you wish to clone and click the clone current investment strategy icon to the right of the investment strategy you wish to clone.
You'll be redirected back to the main Investment Strategy step page where you'll notice that an exact copy of this investment strategy has been created and added at the bottom of the investment strategy table with the name 'Copy of......'.
Having created the copy, you can then edit its name by clicking on the edit icon to the right of the investment strategy name (remember this name will be included as a sub heading within your report), and the underlying investments that make up this investment strategy in the usual way by clicking on the edit investments link.
b. Create a new investment strategy from scratch
To create a brand new investment strategy from scratch click create new investment strategy.
You will be directed to a new page where you’ll be prompted to give the revised investment strategy a name. This will be included as a sub-heading within your report and should help identify to which plan(s) and whom the investment strategy applies e.g Your REVISED Transact Investment Strategy. Click save and you’ll then be prompted to add the investment(s) that make up the revised investment strategy.
c. Clone a Recommended Investment Strategy
Having created a recommended investment strategy you can clone it by clicking the clone icon to the right of the investment strategy's name. Having cloned it, you can then make any necessary edits.
Once you’ve added the investments to the new investment strategy, click on the why investment strategy link to the right. You'll be directed to a new page where you’ll be prompted to confirm the advice reasons why you’ve recommended the revised investment strategy.
7) Complete the Important Information section
This is the last section you'll need to complete and is self-explanatory.
8) Tailor the structure of the report
Having completed all of the section wizards you should then tailor the structure of your report by unchecking any sections you do not wish to include in your report; and then change the sort order of any sections to reflect your personal preferences.
9) Download the report / covering letter
Click the download report / download cover letter icon and the report / covering letter will download to word.
By the way if you haven't already please check out our Suitability Report Sections Matrix. It's a great little tool that highlights which sections you should add to the Report Builder for a whole host of advice scenarios.
Hope that helps!