Financial Adviser Annual Client Review Checklist Template

Assigned to the adviser and paraplanner. The answers recorded here decide which later phases and tasks appear.

• Record the review due date and the service level agreed — what the client pays for and how often a review was promised
• Record the jurisdiction and relationship — UK, US investment adviser, or US broker-dealer with agreed account monitoring
• Record whether the client is in or approaching retirement income — a Yes opens the retirement income phase
• Pull the last review, holdings, performance, transactions and fees charged in the year — attach them to the task
• Send the invitation and pre-meeting questionnaire — asking what has changed in health, family, work, income and goals
• Record whether the client booked the review — a No opens the non-engagement phase

Shown only when the client has not booked or has declined. What happens to the fee follows the firm’s own ongoing service policy.

• Send a second invitation by a different channel — and record each attempt with its date
• Record the client’s reason if they decline — in their words, not a tick box
• Offer a lighter service or no ongoing service — a client who does not want reviews should not keep paying for them
• Decide whether to pause, reduce or refund the ongoing fee — under the firm’s policy, with the reasoning recorded
• Refer repeated non-engagement to compliance — it may also be a sign of vulnerability

• Update personal circumstances — health, relationships, dependants, employment and retirement plans
• Update income, expenditure, assets and liabilities — including assets held elsewhere and any new debt
• Revisit objectives and time horizons — confirm each goal still applies and add new ones
• Check for characteristics of vulnerability — health, life events, resilience and capability, and how the client wants to be supported
• Confirm or add a trusted contact or authorised representative — US broker-dealers must make reasonable efforts to obtain one for non-institutional accounts
• Refresh identity and anti-money laundering records where they have expired — under the firm’s periodic review policy

• Reassess attitude to risk, knowledge and experience — using the same tool as last year so changes are visible
• Reassess capacity for loss — what a fall in value would mean for the client’s plans, separately from how they feel about risk
• Review the portfolio against the risk profile and objectives — drift, concentration, performance against the agreed benchmark
• Review tax wrappers and allowances — ISA and pension allowances in the UK, account types and tax-advantaged contributions in the US
• Check that the service level and account type still fit — a client paying for a service they no longer need is a value problem
• Record the suitability conclusion and any recommended changes — with reasons that link back to the client’s circumstances

Shown only when the client is in or approaching retirement income.

• Review the withdrawal rate against the plan — is the current income sustainable for the client’s life expectancy?
• Update the cash flow model and record its assumptions — growth, inflation, charges and longevity, with the reasons for each
• Stress test the plan against falls in markets — and compare the result with the client’s capacity for loss
• Review the cash reserve and the order of withdrawals — to reduce the need to sell after a fall
• US: confirm required minimum distributions are scheduled — for clients who have reached the RMD age

UK and US tasks switch on the jurisdiction answer from Phase 1.

• Check the ongoing fee against the service delivered this year — and record why the service is fair value for this client
• UK: provide the annual costs and charges disclosure — total costs in pounds and percentages, with the effect on return
• US: confirm the client has the current Form ADV brochure and Form CRS — and disclose any conflict attached to a new recommendation
• Write the review report or suitability report — what changed, the suitability view, recommendations and reasons
• Adapt the report to the client’s needs — format, length and any support recorded in Phase 3
• Record the client’s agreement or decision on each recommendation — and anything they chose not to do

The file check is an approval task assigned to compliance or a supervising adviser. The checklist cannot close until it is answered.

• Implement the agreed changes — switches, contributions, withdrawals and new accounts, each with an owner and due date
• Update the client record — risk profile, objectives, vulnerability notes and service level
• Record the date the review was delivered — so the firm can show review delivery rates in its management information
• File check by compliance or a supervisor — Approved, or Not approved and returned to the adviser
• Set the next review date — from the service agreement and the client’s needs