Exam ICWIM Topic 1 Question 103 Discussion
Actual exam question for CISI's ICWIM exam
Question #: 103
Topic #: 1
Question #: 103
Topic #: 1
Establishing sufficient details about a client in order to give advice is known as:
Suggested Answer: D Vote an answer
A client fact-find is a structured process used by financial advisers to gather comprehensive details before giving investment advice.
* Why is Option D Correct?
* The fact-find collects financial position, risk tolerance, goals, and investment experience.
* Required under FCA "Know Your Customer" (KYC) rules.
* Why Not Other Options?
* A (Assessing suitability & affordability) # Part of the fact-finding process, but not the full definition.
* B (Determining risk attitude) # Important, but fact-finding includes more than just risk assessment.
* C (Status disclosure) # Firms must disclose their regulatory status, but this is not fact-finding.
# Reference: FCA Handbook (COBS 9 - Suitability & Fact-Finding), CISI Wealth & Investment Management.
* Why is Option D Correct?
* The fact-find collects financial position, risk tolerance, goals, and investment experience.
* Required under FCA "Know Your Customer" (KYC) rules.
* Why Not Other Options?
* A (Assessing suitability & affordability) # Part of the fact-finding process, but not the full definition.
* B (Determining risk attitude) # Important, but fact-finding includes more than just risk assessment.
* C (Status disclosure) # Firms must disclose their regulatory status, but this is not fact-finding.
# Reference: FCA Handbook (COBS 9 - Suitability & Fact-Finding), CISI Wealth & Investment Management.
by Brian at Mar 18, 2025, 03:42 AM
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