2005 exam, question 7 - Client education

archived_user

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Both the wording of the IPS and the return calculations of this one seem easy.
Only one question: she has an above average ability to take risk (more than 10 mio asset base Vs spending needs), and a below average willingness to take risk (very risk averse when investing). Ok, we honor the second one, so overall risk tolerance is below average, perfect.
But… shouldn´t we suggest client education?
It is not in the guideline answer, so I should not worry about this, I know, but isn´t it recommended when a very risk averse client has a substantial ability to take risk?
thx
 
Back
Top