This article provides a step-by-step guide as to how you can quickly and easily write a suitability report for a beneficiary drawdown plan.
- Go to Write report and select or create the client you wish to write the report to.
- Select the Report Creation Method, which will be 'from scratch'.
- In Report Details, give the report a name and select the report currency and Report Type, which in this instance will be Suitability Report. You may also wish to include a Report Reference.
Once in the Report Builder, you’ll need to start adding the required sections and this is where you’ll face your first fundamental choice, based on whether the deceased’s plan was:
- Completely uncrystallised (Scenario 1); or
- Had any element (however small) of crystallised funds (Scenario 2).
Irrespective of the scenario, you will also need to complete the following core sections which will be automatically included as standard:
- Introduction section - It's in this section that you'll be prompted to confirm details of the client's circumstances and objectives.
- Client Risk Profile section - It's in this section that you will confirm the client's attitude to risk and capacity for loss, as well as their knowledge and experience and any investment preferences.
- Important Information section.
Scenario 1 – Existing plan is fully uncrystallised
Review of Your Existing Pension Plans section
If the existing plan has no crystallised funds, then you’ll need to add the Review of Your Existing Pension Plans section to the Report Builder.
In the Plan Summary step, you should add the deceased’s pension plan. Remember that the content of the Ownership field can be overwritten with your own text.
While you’re entering the plan details, it's probably advisable to enter a Current Investment Strategy for the existing plan, as you’ll either be recommending that the beneficiary maintains the same strategy, or adopts a new investment strategy – either way, it’s useful to have recorded how the current plan is invested.
When you get to the Recommended Action step, you should select one of the following:
- ‘take beneficiary drawdown from’ – where the plan is staying with the current provider.
- 'switch' and ‘take beneficiary drawdown from’ - when recommending a change of provider.
Complete the remaining steps as indicated.
Drawing Benefits from Your Pension Fund section
Regardless of the recommended action(s) selected in the review section, you’re definitely going to be recommending a new plan to the client, so you’ll need to add the Drawing Benefits from Your Pension Fund section. In the Plan Summary step, you’ll select Beneficiary Drawdown as the plan you’re recommending and complete each of the subsequent steps as required with details of the new plan being recommended.
Recommended Investment Strategy section
It's here that you'll provide details of the investment strategy you’re recommending for the Beneficiary Drawdown plan being recommended.
Scenario 2 – existing plan is partially or fully crystallised
Review of Your Existing Retirement Income Plans section
If the existing plan is crystallised (even only partly), then you’ll enter the existing plan in the Review of Your Existing Retirement Income Plans section.
Just as in Scenario #1 above, you can add your own content into the Ownership field.
Also as with Scenario #1 above, you should probably enter a Current Investment strategy for the existing plan.
When you get to the Recommended Action step, you should select one of the following:
- ‘convert to beneficiary drawdown’ – where the plan is staying with the current provider.
- 'switch' and ‘convert to beneficiary drawdown’ - when recommending a change of provider.
Complete the remaining steps as required.
Drawing Benefits from Your Pension Fund section
If you’re recommending a switch, you’re clearly recommending replacement business, so you’ll definitely need the Drawing Benefits from Your Pension Fund section.
Recommended Investment Strategy section
It's here that you'll provide details of the investment strategy you’re recommending for the Beneficiary Drawdown plan being recommended.