The general principle of “The Approach” is that recommended products must be appropriate for the needs of the client, including their financial needs and objectives. Based on the information obtained, advisors should identify the insurance need. A single strategy does not fit all clients. In fact, you put yourself at risk if you conduct business in this manner.  

The advisor is obligated to develop a comprehensive understanding of the products and strategies available and determine what is best for each client. Then; advisors need to explain, in plain language, both the advantages and disadvantages of each product and strategy recommended to them. A “reasons why” document should be given to the client post sale to summarize relevant information and explain the recommendation.  

It is also very important that you maintain a paper trail to evidence these discussions and what was recommended and explained to the client. It is not enough to simply send materials to clients, instruct them to read the documents and then come back to you with any questions. Regulator and Judges expect a paper trail (notes, e-mails, and letters) to prove what was explained to complainants who insist they did not understand the products or strategies. 

Client memories are short and selective.  Don’t get caught unprepared!