Questionnaire
Company : ______
Financial Services & Market Act 2000
Independent Financial Advisers are required to have a due regard for the best interests of clients when giving financial advice. They must do their utmost to ensure that they are aware of a clients personal and financial circumstances so that their advice is suitable for a clients needs.
The questions in this personal Financial Summary have been designed to help your adviser provide advice that meets your needs.
You of course do not have to answer all of the questions but any non-disclosure of vital information could result in the advice you are given, not being best advice. The advice you are given will only be as good as the information provided.
.
Data Protection Act –Disclosure of Information
The information given in this document will be retained on computer for reference purposes, and will be held in accordance with the Data protection Act 1998. See our Terms of Business letter for more information.
Professional Independent Advisers Ltd,
Hayward Court, 2b Tettenhall Road, Wolverhampton, West Midlands. WV1 4SF
Telephone: 01902 379900 Fax: 01902 379901 Email:
Authorised and Regulated by the Financial Services Authority
CONTENTS
Introduction
Corporate Objectives
Business Profile
Business Advisers and Contacts
Employee Benefits
Protection – Loans and Keyman
General Insurance
Need for Finance
Review
. / Authority Letter
Appendix – Employee Benefits Schedule
INTRODUCTION
Corporate ClientEvery company or organisation has its own financial profile and its own business requirements. Indeed, although the objectives of key directors cannot be ignored, it is important to recognise the company is an “entity” in its own right.
Although the company is a distinct and legal entity, it is very often possible to meet some of the personal objectives of key directors by providing them with benefits funded by the company, often with tax relief. Such actions improve the morale of the employee, as well as often tying them more into the company.
This questionnaire is designed to examine the financial planning objectives of the organisation, i.e. to look at tax mitigation and protection of business assets, including people. Although financial planning impinges on it, it is not about the business management of the company, which is the company’s responsibility.
The questionnaire is broken down into component parts to recognise that there needs to be some priority order set for particular requirements and to meet the objectives of the organisation. The questionnaire is also a reference guide to organisations about the possible options within a financial plan and to be able to set markers for the future, when such requirements can possibly be afforded.
1. CORPORATE OBJECTIVES
The following questions are designed to help the financial planner get a feel for the company’s ambitions, so that any recommendations do not run contrary to stated and unstated objectives:Please specify your financial objectives by assigning a priority from 1 to 5 to the following need areas (1=high priority, 5=no priority).
Tax Mitigation / To Diversify
To “Own” Business Premises / Expansion
To Incorporate / To Improve Profitability
Sale of Business Now, 5 Years Time, etc / To Build Up Capital
Sell Shares in Business / To Cater for Needs of an Individual
Provide Employees with Better Benefits / Other specific objective
2. BUSINESS PROFILE
Business Details
Name of BusinessStatus / Company / Partnership / Sole Trader
Nature of Business
Business Address / Date Business Commenced
Accounting Year End
Post Code
Ownership: Limited Company
Shareholder Information
Total Issued Capital / Shareholders Share Value
Partnerships and Firms
Partners/Proprietors Name(s)
Share of Capital and Profit / Share of Capital and Profit
Is there any formal arrangement in existence regarding the disposal of shares (or share of firm)?
Profile of Company
Nature of BusinessNumber of Employees
Market
Assets
/ Balance Sheet Assets / Intangible AssetsPlease provide Accounts
Pre-Tax Profits: Last Year / £ / Current Liquid AssetsPre-Tax Profits: Year Before / £ / £
Pre-Tax Profits: Year Before / £
Est Pre-Tax Profits: This Yr / £
Business Premises / Rented / Freehold / Leasehold
If Company leases premises,
Do Directors or Shareholders
own the Freehold? / YES / NO
Liabilities
Amount / Lender / Type of Loan / Term / Repayment Method£
£
£
£
£
Please give details of any personal guarantees or personal security given against any of these liabilities
Existing Employee Benefit Arrangements
Please also refer to the Employees Benefit Sheet
Pension Schemes
If a Company, is there an
Occupational Pension Scheme? / Yes / No
Final Salary or Money Purchase Schemes (Only to be completed if applicable)
Pension Basis (eg 60ths,80ths,other) / ths / Membership Catagories
Company Contribution / %
Employee Contribution / %
Death in Service Benefit
Pensionable service start date
Contracted out of S2P / Yes / No
Normal Retirement Age
Widow(er)’s Pensions
Personal Pension Plans, Including Group Personal Pension Plans (Only to be completed if applicable)
Insurance Company
Membership Catagories
Company Contribution / %
Employee Contribution / %
Death in Service Benefit
Pensionable service start date
Contracted out of SERPS / Yes / No
Normal Retirement Age
Widow(er)’s Pensions
Permanent Health Insurance and Private Medical Insurance (Only to be completed if applicable)
Insurance Company
Eligibility
Benefit Levels / %
Details of Term etc
Professional Contacts
Bank / SolicitorContact Name (s)
Company Name
Address
Post Code
Telephone No.
Accountant / Pension Scheme Administrator
Contact Name (s)
Company Name
Address
Post Code
Telephone No.
Other Financial Adviser / Other
Contact Name (s)
Company Name
Address
Post Code
Telephone No.
3. FUTURE NEEDS
Employee Benefits
The need for employee benefits is still as valid today as it was years ago, in the heyday of the final salary pension scheme. However, times have changed and a much wider range of options is considered by the modern employer.
The basic concept of employee benefits is the setting aside of some of the company’s income to provide benefits over and above the employee’s basic level of remuneration. There are many reasons for doingthis (subject to cost):
to set aside income as a form of deferred pay so that the employee cannot spend it and argue at retirement that he was not looked after
improved employee morale
to provide benefits at a cheaper rate than the employee could do himself because of economies of scale
to obtain tax relief when maybe the employee cannot
to provide the employer with some form of protection should some illness or accident happen to his employee, e.g. that provided by sick pay schemes.
There is a considerable range of choice, not only in terms of benefit, but also to which group of
employees such benefits apply. In order to give the future needs a brief, please tick the following
benefit options to be considered and,if necessary, in order of priority:
tickfor which employees priority
Pension Scheme - final salaryPension Scheme - other type
Death in Service benefits
- please state amount £………...
Widows pension benefit
- please state level ……………..
Permanent Health Insurance
Private Medical Coverage
Other e.g. share option schemes,
Please specify:
Cost
Every company will have an idea of what it can afford to pay for these employee benefits. Please give an indication of what the company can afford now, either as a percentage of overall salary bill or as a percentage of the remuneration of the employees to be covered or as a fixed amount. Please give anindication whether this will increase, decrease or stay the same over the next five years.
Protection – Loans and Keyman
This section covers the impact, on a company, of the death (or disability) of a director or employee whilst in employment. The impact of the death on the employee’s family is discussed elsewhere, but there may be serious repercussions of his death (or disability) on the company.
A death can trigger off all kinds of problems. For instance, it may cause loans to be called to be repaidor, in cases of small companies or partnerships, it may well cause shares to be purchased etc.
Another impact that a death can cause is loss of income earning potential. This very often occurs if a sales and marketing director dies or, indeed, any key individual within the organisation. The cost canbe prohibitive not only in terms of recruitment costs, but retraining, building up the business again.
LOAN REPAYMENT1 / Name / Amount / Type of Loan
£
Recipient
2 / Name / Amount / Type of Loan
£
Recipient
PURCHASE OF SHARES
1 / Name / Amount / Details of Shares
£
Recipient
2 / Name / Amount / Details of Shares
£
Recipient
LOSS OF INCOME (Keyman)
1 / Name / Amount / Reason for Loss
£
Period affected
2 / Name / Amount / Reason for Loss
£
Period affected
General Insurance
The need for cover under general insurance is part of the overall financial planning process for a
company. In part, because of the cost element and in part because an event or accident can cause a company substantial losses, which insurance can mitigate or resolve.
The range of potential cover that can be effected is quite large, ranging from buildings cover to business interruption. Indeed, the subject is a specialist one.
However, any financial planner needs to know and understand the business risks that need insurance cover so that recommendations can be made (if not already handled) by the financial planner or another professional adviser.
The following insurance cover is available. Please indicate the needs of the company:
In force
/Type of cover
/Amount of Cover
/Premium
/Required (if not in force)
Yes / No / Buildings Insurance / £ / £ / Yes / NoYes / No / Contents / £ / £ / Yes / No
Yes / No / Busn Interruption / £ / £ / Yes / No
Yes / No / Book Debts / £ / £ / Yes / No
Yes / No / Fidelity / £ / £ / Yes / No
Yes / No / Personal Accident / £ / £ / Yes / No
Yes / No / Legal Expenses / £ / £ / Yes / No
Yes / No / Employers Liability / £ / £ / Yes / No
Yes / No / Miscellaneous* / £ / £ / Yes / No
( *e.g. money, personal
assault, glass, etc)
Need for Finance
All companies require finance from time to time, whether it be a bank overdraft or long term finance.
A financial advisor will not generally get involved with the business plan necessary to raise such
finance (though some may well be able to help).
On the other hand, the financial advisor may well be able to help with the source of such finance, the best type of loan or arrangement and perhaps, the best available interest rate.
There are many different kinds of lenders, with many types of loan and, generally, companies especially the smaller ones, need external help to obtain the best ‘loan arrangement’.
In order to ascertain your current position, please list below your requirements. (Current loans should be stated in Profile Section).
Need for Finance
/Required Finance
Bank / £Loans / (Partnership) / £
Loans / (Corporate) / £
Property / (Mortgage) / £
Lease / HP / £
Other / £
Details
4. FUTURE REQUIREMENTS
This questionnaire has been (in part) designed to “help” the Company identify its own Assets, Liabilities and future needs. The completion of this section will give the financial planner the “priority” order of its requirements, especially as few companies or firms can, for many practical reasons, resolve them all at once.Please outline your current priorities by assigning each a number from 1 to 5:
(1=high priority, 5=no priority).
Review - Existing Pension Scheme / General Insurance Review
Review – Other Existing Employee Benefits / Review of Cover for Loans / Keyman
Tax Mitigation / Need for Finance
Needs of Individuals
Details
Declaration
PLEASE READ AND CHECK THIS ENTIRE FORM BEFORE SIGNING.
The information in this Questionnaire has been provided on the understanding that it will be used in strict confidence and that it places us under no obligation to take up any recommendations.
shall form the basis for all advice offered.
Signature(s)
Position in Company
Date
------
TO WHOM IT MAY CONCERN
Dear SirsThis is just to inform you that we have appointed ………………………………………………..of
………………………………………………………………..to help co-ordinate and advise on our Company’s financial affairs.
Please take this as our authority to provide him/her with any information that he/she requests about Our Company’s affairs.
Yours faithfully
Signature(s)
Date
Name
Position
Company Name
Address
Post Code