Friend, Foe, FAD – Cashflow modelling with FinCalc
60 min watch 14 Sep 23
We teamed up with three of the most popular Cashflow systems in the UK – Voyant, FE CashCalc and FinCalc, to bring you three Cashflow modelling bets practice sessions and to discuss how cashflow modelling can assist advisers with their Consumer Duty requirements.
On this event, our host Colin Simmons, Business Development Manager spoke with Gavin Shears – Senior Product Consultant, FinCalc, on topics including:
- Cashflow modelling best practice
- How Cashflow modelling can assist advisers with their Consumer Duty requirements
- How best to use their systems - a quick demonstration
- Considering what the Financial Conduct Authority (FCA) said about Cashflow modelling on their Defined Benefit (DB) transfer review and provide thoughts on what this could mean for the FCA’s forthcoming review on retirement income advice
- Challenging the thought process on stress testing and why Cashflow modellers are more than just a tool for retirement and income planning
- Explaining the impact of different retirement income strategies
The session qualified for up to 60 minutes structured CPD accredited by CII and CISI and now you should be able to:
- Explain how Cashflow modelling can be used in the advice process to help clients visualise their retirement journey
- Demonstrate how Cashflow modelling can help clients understand the risks in retirement
- Demonstrate your capacity for loss process by effective stress testing of client outcomes
- Demonstrate how Cashflow modelling can assist advisers with their Consumer Duty requirements
- Explore DB transfers in relation to regulatory requirements and good practice for Cashflow modelling
- Explain the impact of different retirement income strategies
To claim your CPD certificate, test your knowledge with the questions below.
Write down your answers to each of the following questions and check your answers when you click to claim your CPD certificate on the link below
1. You are a financial adviser helping a client plan for their retirement. The client is considering different investment options and wants to understand the impact of inflation on their retirement income. Which of the following statements about cashflow modelling and inflation is true?
a) Cashflow modelling assumes that inflation remains constant over time, leading to accurate retirement income projections
b) Cashflow modelling does not consider inflation, as it only focuses on current cashflows and expenses
c) Cashflow modelling can incorporate inflation rates to estimate the future purchasing power of retirement income
d) Cashflow modelling relies solely on historical inflation data, making it less reliable for future projections
2. The new Consumer Duty policy is to protect consumers' rights and enhance their financial well-being. Which of the following aspects is typically addressed by the Consumer Duty?
a) Increasing taxes on consumer goods and services to fund consumer protection agencies
b) Encouraging businesses to prioritise profits over customer satisfaction to stimulate economic growth
c) Promoting transparency and fairness in pricing, terms, and conditions of products and services
d) Limiting consumer choices to prevent overspending and boost national savings
3. A good place to see previous examples of good practice from the regulator in relation to cashflow modelling is?
a) The finalised guidance on DB transfers FG21/03
b) The Thematic review on pension switching
c) The retirement outcomes review paper
1. You are a financial adviser helping a client plan for their retirement. The client is considering different investment options and wants to understand the impact of inflation on their retirement income. Which of the following statements about cashflow modelling and inflation is true?
a) Cashflow modelling assumes that inflation remains constant over time, leading to accurate retirement income projections
b) Cashflow modelling does not consider inflation, as it only focuses on current cashflows and expenses
c) Cashflow modelling can incorporate inflation rates to estimate the future purchasing power of retirement income
d) Cashflow modelling relies solely on historical inflation data, making it less reliable for future projections
2. The new Consumer Duty policy is to protect consumers' rights and enhance their financial well-being. Which of the following aspects is typically addressed by the Consumer Duty?
a) Increasing taxes on consumer goods and services to fund consumer protection agencies
b) Encouraging businesses to prioritise profits over customer satisfaction to stimulate economic growth
c) Promoting transparency and fairness in pricing, terms, and conditions of products and services
d) Limiting consumer choices to prevent overspending and boost national savings
3. A good place to see previous examples of good practice from the regulator in relation to cashflow modelling is?
a) The finalised guidance on DB transfers FG21/03
b) The Thematic review on pension switching
c) The retirement outcomes review paper
Before collecting your certificate, please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk
Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when contacting us.
FinCalc Support
- For guides and support visit https://www.fincalc.co.uk/
- Email: sales@fincalc.co.uk Tel: 01206 803210 linkedin.com/company/fincalcuk/
Related Insights
Lifetime Allowance – where are we, where are we going and what to do?
On this event, Les Cameron, Head of Technical at M&G Wealth looked at what the future might hold for Lifetime Allowance.
Future proofing your business for sale, now or in the future
On this event our experts from The Exit Partnership and M&G Wealth explored the expensive mistakes owner-advisers make when selling their business.