Platforms Wealth Management and Service Providers – Quiz 04

Last Updated: June 2024

Table of Contents

CISI – Platforms, Wealth Management and Service Providers Quiz 4 is Covered :-
The Market and the Platform Service Provider
Platforms in the Market
understand how platforms support distribution for product providers and investment providers
know the range of tools and services that may be provided by a platform
understand how tools are used to satisfy clients’ requirements
Charging Structures and Revenue Streams
know the difference between the different charging structures that platforms can apply: • bundled / unbundled
• fixed / variable
know the revenue streams that platforms can generate for their owners
Investment Decisions
understand the appropriateness and suitability requirements
understand the circumstances in which a platform would block a client from trading in a particular asset
understand the principles of model portfolios and why firms use them • advisers • wealth managers • discretionary investment managers
understand the benefits and risks of using model portfolios preloaded to the platform
know the range of research, portfolio planning and performance measurement tools that platforms can offer
understand the control processes that firms may implement around platform dealing
understand the purpose of portfolio rebalancing
understand the differences between and implications of simultaneous and sequential fund switch tools
understand how platforms manage the liability that could arise from the provision of portfolio and dealing tools
understand how firms manage the liability that could arise from the use of portfolio and dealing tools
Relationships
understand the structure and importance of a platform’s relationship with: • retail investors • financial advisers
• discretionary investment managers
understand the relationship and contractual arrangements between platform operators and other industry participants: • custodians • nominee companies • fund managers • wrapper providers
understand the key elements of a Service Level Agreement
Selection of a Platform
understand the features of platforms that inform the selection process
understand adviser’s obligations in relation to platform selection including ongoing due diligence

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