JUNIOR LEVEL

What would you do if a client disagreed with your financial recommendations?

Sample answer to the question

If a client disagreed with my financial recommendations, I would first listen to their concerns and try to understand their perspective. I would then explain my reasoning behind the recommendations and provide any additional information or data to support them. I would emphasize that my goal is to help them achieve their financial objectives and address any specific concerns they may have. If the disagreement persists, I would consult with my senior advisor or team to get their input and guidance. Ultimately, I believe in maintaining open and transparent communication with clients and finding a solution that aligns with their goals.

A more solid answer

If a client disagreed with my financial recommendations, I would start by actively listening to their concerns and acknowledging their point of view. I would then explain the rationale behind my recommendations, highlighting the analysis and research that went into them. I would take the time to address any specific questions or doubts they have, providing additional information or alternative options if necessary. It's important for me to maintain a positive and respectful relationship with the client, so I would assure them that I am open to revisiting the recommendations and making adjustments if it aligns better with their goals or risk tolerance. If the disagreement persists, I would involve my senior advisor or team for a second opinion or to mediate the discussion. Ultimately, the goal is to find a solution that both addresses the client's concerns and aligns with their long-term financial objectives.

Why this is a more solid answer:

This answer is solid because it demonstrates the candidate's ability to listen actively, communicate effectively, and adapt to different situations. It provides specific actions the candidate would take to address the disagreement and emphasizes the importance of maintaining a positive client relationship. However, it could be improved by mentioning the candidate's eagerness to learn from the client's perspective and incorporate their feedback into future recommendations.

An exceptional answer

If a client disagreed with my financial recommendations, I would approach the situation with empathy and understanding. I would start by exploring their concerns in detail and seeking to truly understand their perspective. I would then assess if any miscommunication or misunderstanding has occurred and take responsibility for any part I may have played in that. Next, I would discuss the client's financial goals and objectives to ensure that we are on the same page. If necessary, I would go back to the drawing board and conduct further research or analysis to present alternative recommendations that better align with the client's needs and preferences. It's crucial to maintain transparency throughout the process, explaining the pros and cons of each option. Additionally, I would be open to learning from the client's unique financial circumstances and tailor the recommendations accordingly. If the client remains unsatisfied, I would involve a senior advisor or team member to provide a fresh perspective and work collaboratively to find a resolution. Ultimately, my goal is to build a trust-based relationship with clients, putting their interests first and ensuring that they feel heard and understood.

Why this is an exceptional answer:

This answer is exceptional because it demonstrates not only technical expertise but also strong interpersonal skills. The candidate shows empathy, adaptability, and a genuine commitment to the client's best interests. The answer goes beyond resolving the disagreement and emphasizes building trust and understanding through effective communication. The candidate's willingness to learn from the client and seek alternative recommendations sets them apart. However, it could benefit from incorporating the candidate's eagerness to learn from the client's perspective and feedback into future recommendations.

How to prepare for this question

Familiarize yourself with different investment vehicles and financial concepts in order to explain your recommendations effectively.
Practice active listening and empathy to demonstrate your understanding of the client's concerns.
Be prepared to provide specific examples from past experiences where you successfully resolved conflicts or disagreements with clients.
Research the company's financial planning software and familiarize yourself with its features and capabilities.
Stay up-to-date on current market trends and changes in financial planning best practices.

What interviewers are evaluating

Client relationship management
Effective communication
Adaptability and eagerness to learn