Why is the process of prioritising the protection needs of your client important?

The prioritisation of protection needs is crucial in financial planning as it ensures that a client’s financial situation is safeguarded against unforeseen risks, such as illness, death, or loss of income. The "Know Your Customer" (KYC) process plays a key role in assessing financial obligations and affordability.

Affordability & Suitability: The client and adviser must agree on an affordable plan that aligns with their financial capabilities.

Risk Mitigation: Protecting against financial risks ensures stability before focusing on wealth accumulation.

Regulatory Requirements: The Financial Conduct Authority (FCA) mandates that advisers ensure financial plans are affordable and suitable for clients (FCA Handbook).

Industry Best Practices: Before recommending investments, advisers prioritise protection through life insurance, income protection, or critical illness cover.

???? Reference: CISI Wealth & Investment Management (Client Protection Strategies), FCA Conduct of Business Sourcebook (COBS).