This article provides a step-by-step guide as to how a Writer user can quickly and easily write a suitability report covering the switching of crystallised (or part-crystallised) plans.
1) Select or add the client
From the Genovo main dashboard, go to Write report and select or create the private client you wish to write the report to.
2) Select the Report Creation Method
This article walks you through the steps of building the report using Genovo’s 'from scratch' report creation method. However, other report creation methods are available which can make the report building process even quicker.
3) Create the report
In Report Details, give the report a name and select the Report Type - we'd suggest using the Suitability Report.
4) Add the required sections
Assuming you’re using the ‘from scratch’ creation method, you’ll need to add the necessary sections from the 'Available sections' drop down, which in this instance will be:
- Review of Your Existing Retirement Income Plans
- Drawing Benefits from Your Pension Funds
- Recommended Investment Strategy
5) Complete all section wizards
Next, you'll need to step through the section wizards of all sections that require your input, as follows:
5a) The Introduction section
Progress through the steps of the Introduction section in the usual way. When you reach the Client Objectives step you should select or add the advice option(s) that accurately reflect the client's objective(s) and add comprehensive Know Your Client (KYC) information to ensure you fulfil the regulator’s expectations of you in terms of documenting a client's objectives.
There’s a Genovo advice option specifically for replacement business:
‘Consolidate your existing *investments and / or pensions* where appropriate, so it is easier to manage your investment portfolio and see how it is performing.’
Once you’ve selected this option, you can click on the Edit Objective / Add KYC info link to tweak the objective wording to suit the client’s actual objectives and to add the KYC info – the ‘back story’ behind the client’s desire to consolidate plans.
Of course, you can add your own Advice Option if you prefer, or you can enter the client’s objectives by typing or pasting in external content by clicking the Add objectives as free text button.
5b) The Client Risk Profile section
It's in this section that you will confirm the client's attitude to risk and capacity for loss, as well as their knowledge and experience and any investment preferences.
5c) The Review of Your Existing Retirement Plans section
The Plan Summary step
First, you’ll be prompted to provide an overview of the existing plans. Just click the Add Plan button and you’ll be shown a new window where you can enter all the required plan details. If your Genovo account is integrated with your back-office app (and you’re working with an integrated client), adding plans is even easier – just click the Add plans from CRM button and chose which plans you want to import.
The Plan Benefits & Features step
This step is very important for pension switching recommendations, especially if switching the plan will result in some features being given up.
The Current Plan Charges step
Next, summarise the ongoing charges of the plans being reviewed in the Current Plan Charges step.
Note that if you’ve included the plan in a previous Genovo report, you can have the charges pulled into the new report from the previous report by enabling Predictive Plan Charges.
The Recommended Action step
In this step, you will need to confirm what action you are recommending in respect to each plan and the reasons to support the recommendation. For all plans being switched, you should select either:
- 'switch' - if you’re recommending the plan is switched in its entirety, or
- ‘partially switch’ - if you’re recommending that the ceding plan remains in force, but with a reduced fund value.
You should ensure that after you’ve selected the appropriate Recommended Action, you also add some associated Advice Reasons - this is the ‘why’ part of the advice. Just click the Add advice reason hyperlink and then select from any of the standard advice reasons, or of course, you can add your own custom advice reason.
The Key Disadvantages and Tax Implications step.
It’s here that you can confirm any disadvantages associated with the recommendation being made, such as the loss of a particular feature or benefit, or any increase in charges, imposition of an exit penalty, etc
The four Plan Comparison steps
Finally for this section, because this is replacement business, you will also be prompted to compare the following aspects of the existing and recommended new plans in the Plan Comparison steps.
- Plan Charges - Quantify the difference in the Total Annual Recurring Charge of the existing plan and the new plan that is being recommended to replace it
- Reduction in Yield (RIY) – Compare the RIY of the existing plan and the new plan that is being recommended to replace it.
- Performance – if performance has been cited as a factor for replacing the current plan, we would expect to see supporting information here.
- Death Benefits – allows you to record a ‘before & after’ position regarding the plan’s death benefits
5d) The Review of Your Existing Retirement Plans section
The Plan Summary step
First, you’ll be prompted to provide an overview of the existing plans. Just click the Add Plan button and you’ll be shown a new window where you can enter all the required plan details. If your Genovo account is integrated with your back-office app (and you’re working with an integrated client), adding plans is even easier – just click the Add plans from CRM button and chose which plans you want to import.
The Plan Benefits & Features step
This step is very important for pension switching recommendations, especially if switching the plan will result in some features being given up.
The Current Plan Charges step
Next, summarise the ongoing charges of the plans being reviewed in the Current Plan Charges step.
Note that if you’ve included the plan in a previous Genovo report, you can have the charges pulled into the new report from the previous report by enabling Predictive Plan Charges.
The Recommended Action step
In this step, you will need to confirm what action you are recommending in respect to each plan and the reasons to support the recommendation. For all plans being switched, you should select either:
- 'switch' - if you’re recommending the plan is switched in its entirety, or
- ‘partially switch’ - if you’re recommending that the ceding plan remains in force, but with a reduced fund value.
You should ensure that after you’ve selected the appropriate Recommended Action, you also add some associated Advice Reasons - this is the ‘why’ part of the advice. Just click the Add advice reason hyperlink and then select from any of the standard advice reasons, or of course, you can add your own custom advice reason.
The Key Disadvantages and Tax Implications step.
It’s here that you can confirm any disadvantages associated with the recommendation being made, such as the loss of a particular feature or benefit, or any increase in charges, imposition of an exit penalty, etc
The four Plan Comparison steps
Finally for this section, because this is replacement business, you will also be prompted to compare the following aspects of the existing and recommended new plans in the Plan Comparison steps.
- Plan Charges - Quantify the difference in the Total Annual Recurring Charge of the existing plan and the new plan that is being recommended to replace it
- Reduction in Yield (RIY) – Compare the RIY of the existing plan and the new plan that is being recommended to replace it.
- Performance – if performance has been cited as a factor for replacing the current plan, we would expect to see supporting information here.
- Death Benefits – allows you to record a ‘before & after’ position regarding the plan’s death benefits
6) Tailor the structure of the report
Having completed all 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.
You’ll find more information about how to remove sections from your report here.
You'll find more information about how to reorder the sections in your report here.
7) Create the report
Having created the framework of the report of the report with 98%+ of the content already included as an initial draft in the Report Builder, both Writer and Reader users can then make any final tweaks to the content of the draft report in the Report Editor. To open and edit the report in the Report Editor click Create / Edit report.
Report template
Having created the report, you may then wish to convert it into a template and save it to your Report Template Library to use as a starting point for creating future reports.