CeMAP FRE2 Advice Skills: Fact-Finding to Recommendation question: pushes for a large gift from Bill's savings

CeMAP FRE2Advice Skills: Fact-Finding to Recommendation

An elderly client, Bill, attends with his nephew, who answers for him and pushes for a large gift from Bill's savings. Bill seems hesitant. What should the adviser do?

A Follow the nephew's lead, since Bill brought him along to help and lets him speak
B Speak to Bill alone and check his own wishes, as he is the client
C Refuse to deal with Bill in future, because the presence of a relative makes the advice unsafe
D Report the nephew to the FCA straight away, as the FCA investigates suspected financial abuse

Show the answer and explanation

Answer: B. Speak to Bill alone and check his own wishes, as he is the client

Signs that a third party is controlling decisions can indicate financial abuse or undue influence. FG21/1 expects firms to spot such signs and take steps such as speaking to the customer alone, checking their wishes and capacity (Mental Capacity Act 2005 s1 presumes capacity) and escalating internally where needed. The client is Bill, not the nephew. Refusing to deal with Bill would not protect him, and the FCA is not the body for reporting suspected abuse of an individual.

Common mistake

Taking instructions from a relative instead of the client.

Practise more FRE2 Advice Skills: Fact-Finding to Recommendation questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Advice Skills: Fact-Finding to Recommendation CeMAP FRE2practice questions & mock exams

Related CeMAP FRE2 questions

Fiona, 52, wants to release £40,000 from her home to help her daughter with a deposit. She has a modest income and 13 years to retirement. Which approach to identifying solutions is most appropriate?A new client gives payslips showing £5,500 a month, but his bank statements show regular salary credits of £3,200 from the same employer. He says: 'The payslips are right, just put them in.' What should the adviser do?A couple with a new baby have £300 a month spare. They have no emergency fund, no life cover, a mortgage, and want to start investing for their child's university. Which order of priorities is most appropriate?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original practice material mapped to the published CeMAP FRE2 learning outcomes. Independent, not endorsed by Walbrook (formerly LIBF). Verify figures and rules against current guidance before relying on them.