Professional financial services

Clients seek planning, tax, insurance, credit and investing advice.

• Know the service lines and who can offer each.
• Interview five clients on their goals and worries.
• Choose a niche such as newcomers, students or small businesses.
• Write a service sheet.
• Separate education from advice: explaining a savings account differs from recommending a product; check the provincial rule on what needs registration.
• Ask what worries each client most and record it in their own words.
• List what you will not do and where you refer those clients.

Activity. Interview five people and write a service sheet.

Standard to meet. Record needs.

Financial advice is regulated.

• Provincial securities, insurance and mortgage regulators license advisers.
• Know-your-client and suitability duties usually require documented advice; check the rule that applies to your registration.
• Anti-money-laundering rules require identifying clients and reporting suspicious activity; check which apply to your registration.
• Privacy law covers client records.
• Write a one-page conduct code covering honesty, disclosure and putting the client first.
• Know when to refer: complex tax, legal questions, or products outside your registration.
• Store client records securely and keep them for the period the regulator requires; check the provincial rule.

Activity. Build a rules table.

Standard to meet. Cite a source and a date for every row.

Plain-language plans win trust.

• Collect the client's goals, income, costs, debts and assets.
• Compute net worth and savings rate.
• Set action steps with dates.
• Explain the risks and fees in the plan in plain words.
• Compute net worth as assets minus debts for the fictional client.
• Build a monthly budget with income, fixed costs, flexible costs and savings.
• Set an emergency fund target of three months of costs.

Activity. Build a plan for a fictional client.

Standard to meet. Check the numbers.

Fees must be clear.

• Choose a fee model: hourly, fixed or percentage; check the provincial rule on what your registration allows.
• Disclose all costs and fees to the client in writing before work starts.
• Track your time on each client file.
• Work out break-even hours as fixed cost divided by margin per hour.
• Compare fee models: 20 hours at 150 is 3,000, against a fixed fee of 2,800.
• Write a fee schedule that lists what is included.
• Track time in 15-minute blocks and review the price each quarter.

Activity. Build a fee sheet.

Standard to meet. Write the disclosure.

Keep files complete.

• Keep a checklist for every client file.
• Review each client's plan every year.
• Have a written complaints process.
• Arrange supervision or peer review of your files.
• Make a client-file checklist and tick each item.
• Put the annual review date in the file and the calendar.
• Write complaint steps: acknowledge, investigate, answer in writing.

Activity. Audit five mock files.

Standard to meet. List gaps.

Trust grows from help.

• Win clients through referrals and community talks.
• Publish free guides in plain language.
• End every contact with a clear next step.
• Track talks, meetings and clients.
• Give a talk to a community group on one topic, such as a first tax filing, without selling a product.
• Offer a free first meeting of 30 minutes with a written agenda.
• Send a written summary within two days.

Activity. Give a short talk.

Standard to meet. Record feedback.

Protect clients.

• Disclose conflicts of interest before giving advice.
• Learn the signs of fraud and what to do when you see them.
• Never promise investment returns.
• Have a business continuity plan.
• Teach clients common scams: urgent payment demands, gift-card requests and promised returns; tell them to verify by calling a known number.
• Write a conflict disclosure statement in plain words.
• Plan continuity: back up files and name a person to call if you are away.

Activity. Write a risk register.

Standard to meet. Name an owner for each item.

Practise on fictional clients before you advise real ones.

• Run the pilot with mock clients only, with no real client money or advice.
• Have a peer review each plan.
• Stop rule: a plan with missing disclosure fails and must be fixed.
• Reflect on what the reviews showed and write one lesson.
• Prepare three fictional clients with different incomes, such as 2,500, 4,000 and 6,000 a month.
• Ask a peer to play the client and raise a hard question about fees.
• Score each plan against a ten-item checklist.

Activity. Run mock pilot.

Standard to meet. Review has decision.

L1: Finance aware learner. You can define: name the main terms, people and rules of professional financial services. Focus module: Understand what clients need from financial services (Understand, 6 h). Clients seek planning, tax, insurance, credit and investing advice. Key points: Know the service lines and who can offer each. Interview five clients on their goals and worries. Choose a niche such as newcomers, students or small businesses. Write a service sheet. Separate education from advice: explaining a savings account differs from recommending a product; check the provincial rule on what needs registration. Ask what worries each client most and record it in their own words. List what you will not do and where you refer those clients.

Speaker notes. Teach: open with the worked example. Newcomers need credit history, tax filing and savings plans in their first year. A newcomer who earns 3,000 a month and saves 300 has a savings rate of 300 / 3,000 = 10%, a starting point for a plan. Then set the activity: Interview five people and write a service sheet. Mark against the standard: Record needs. Check at this level (this question is covered in module 2: Know registration and conduct rules): What is suitability? Model answer: Advice fitting the client's goals, risk and situation. Level note: Start here if new. Evidence: a one-page glossary and a visit or interview note.

L2: Clerk or assistant. You can describe: explain how professional financial services works from first contact to result. Focus module: Know registration and conduct rules (Apply, 6 h). Financial advice is regulated. Key points: Provincial securities, insurance and mortgage regulators license advisers. Know-your-client and suitability duties usually require documented advice; check the rule that applies to your registration. Anti-money-laundering rules require identifying clients and reporting suspicious activity; check which apply to your registration. Privacy law covers client records. Write a one-page conduct code covering honesty, disclosure and putting the client first. Know when to refer: complex tax, legal questions, or products outside your registration. Store client records securely and keep them for the period the regulator requires; check the provincial rule.

Speaker notes. Teach: open with the worked example. Row: 'Recommend a fund | provincial securities regulator | registration and suitability record | each advice | file note'. A second row: 'Share client data | privacy law | written consent | before sharing | consent form'. Date each source. Then set the activity: Build a rules table. Mark against the standard: Cite a source and a date for every row. Check at this level: Who regulates advisers? Model answer: Provincial regulators, and in some cases federal bodies; check which applies. Level note: Evidence: a flow chart and a two-minute spoken explanation.

L3: Bookkeeper or junior analyst. You can apply: carry out a routine task in professional financial services to a written standard. Focus module: Build a plan and explain it (Apply, 10 h). Plain-language plans win trust. Key points: Collect the client's goals, income, costs, debts and assets. Compute net worth and savings rate. Set action steps with dates. Explain the risks and fees in the plan in plain words. Compute net worth as assets minus debts for the fictional client. Build a monthly budget with income, fixed costs, flexible costs and savings. Set an emergency fund target of three months of costs.

Speaker notes. Teach: open with the worked example. Income 4,000, costs 3,200; savings are 800 and the savings rate is 800 / 4,000 = 20%. Three months of costs is 3 x 3,200 = 9,600, which takes 9,600 / 800 = 12 months to save. Then set the activity: Build a plan for a fictional client. Mark against the standard: Check the numbers. Check at this level: What is savings rate? Model answer: Savings divided by income. Level note: Evidence: a supervised task record that meets the standard once.

L4: Accountant or adviser. You can analyse: diagnose why a professional financial services result missed its target and fix it. Focus module: Price the service (Evaluate, 8 h). Fees must be clear. Key points: Choose a fee model: hourly, fixed or percentage; check the provincial rule on what your registration allows. Disclose all costs and fees to the client in writing before work starts. Track your time on each client file. Work out break-even hours as fixed cost divided by margin per hour. Compare fee models: 20 hours at 150 is 3,000, against a fixed fee of 2,800. Write a fee schedule that lists what is included. Track time in 15-minute blocks and review the price each quarter.

Speaker notes. Teach: open with the worked example. Fee 150 per hour; cost 25; margin 125; fixed cost 3,000 a month gives 3,000 / 125 = 24 hours. At 20 billable hours the margin is 20 x 125 = 2,500, which is 500 short. Teaching figures in CAD. Then set the activity: Build a fee sheet. Mark against the standard: Write the disclosure. Check at this level: Why disclose fees? Model answer: Clients must know costs. Level note: Evidence: a fault or gap analysis with a fix and a repeat test. This course targets this level.

L5: Senior adviser or manager. You can evaluate: judge options for professional financial services against cost, risk and quality. Focus module: Win clients ethically (Create, 6 h). Trust grows from help. Key points: Win clients through referrals and community talks. Publish free guides in plain language. End every contact with a clear next step. Track talks, meetings and clients. Give a talk to a community group on one topic, such as a first tax filing, without selling a product. Offer a free first meeting of 30 minutes with a written agenda. Send a written summary within two days.

Speaker notes. Teach: open with the worked example. Funnel: 30 talks, 8 meetings, 3 clients. Meeting rate is 8 / 30 = 27%, client rate is 3 / 8 = 37.5%, and overall 3 / 30 = 10%. Then set the activity: Give a short talk. Mark against the standard: Record feedback. Check at this level (this question is covered in module 7: Manage conflict, fraud and market risk): What must you never promise? Model answer: Returns. Level note: Evidence: an options paper with numbers and a recommendation defended to a panel.

L6: Head of finance. You can create: design and pilot a new offer or process in professional financial services. Focus module: Manage conflict, fraud and market risk (Evaluate, 6 h). Protect clients. Key points: Disclose conflicts of interest before giving advice. Learn the signs of fraud and what to do when you see them. Never promise investment returns. Have a business continuity plan. Teach clients common scams: urgent payment demands, gift-card requests and promised returns; tell them to verify by calling a known number. Write a conflict disclosure statement in plain words. Plan continuity: back up files and name a person to call if you are away.

Speaker notes. Teach: open with the worked example. Risk: 'Client scam loss | 3 x 5 | warnings and verification | adviser | quarterly'. The score is 3 x 5 = 15, so it is high priority and reviewed every quarter. Then set the activity: Write a risk register. Mark against the standard: Name an owner for each item. Check at this level: What is a conflict of interest? Model answer: A situation where your gain may clash with the client's. Level note: Evidence: a pilot with measured results over at least 30 days.

L7: Partner or chief officer. You can lead: run a team or business in professional financial services and develop others. Focus module: Pilot with mock clients (Create, 8 h). Practise on fictional clients before you advise real ones. Key points: Run the pilot with mock clients only, with no real client money or advice. Have a peer review each plan. Stop rule: a plan with missing disclosure fails and must be fixed. Reflect on what the reviews showed and write one lesson. Prepare three fictional clients with different incomes, such as 2,500, 4,000 and 6,000 a month. Ask a peer to play the client and raise a hard question about fees. Score each plan against a ten-item checklist.

Speaker notes. Teach: open with the worked example. All three plans passed the disclosure check, which is 3 of 3 (100%). Had one failed, the stop rule says to fix it before any real client. Then set the activity: Run mock pilot. Mark against the standard: Review has decision. Check at this level: What triggers fail in the mock? Model answer: Missing disclosure. Level note: Evidence: a record of results over a year and of people you have coached to a higher level.