Tips for Choosing a Consultant and Assessing Financial Instruments
Ask About Relevant Experience
Before choosing a consultant, ask about their experience with the specific financial
instruments you are interested in. This can help you gauge whether their expertise
matches your needs.
Request Transparent Fee Information
Clear, upfront communication about fees and processes is crucial. Ensure you receive written details on what is included, and do not hesitate to ask for clarification.
Verify Data Protection Measures
Review the consultant’s approach to confidentiality and data protection. Confirm that
their processes align with Irish and EU legal standards for privacy.
Prioritise Analytical Rigor
Look for advisors who prioritize thorough analysis over predictions or guarantees. Responsible consultants will highlight both benefits and potential risks.
Glossary of Financial Assessment Terms
Instrument Types
3Risk Factors
3Credit Risk
Credit risk is the chance that a borrower will not meet their obligations as agreed. Assessing credit risk involves reviewing issuer reliability and overall market stability.
Market Risk
Market risk is the potential for losses due to changes in prices, interest
rates, or other market factors that affect the value of a financial
instrument.
Liquidity Risk
Liquidity risk describes the difficulty of quickly selling or converting a
financial instrument to cash without significantly impacting its value.
Client Safeguards
3Suitability Assessment
Regulatory Compliance
Confidentiality
Confidentiality refers to the obligation to safeguard client information, limiting access only to authorized team members and never sharing data without consent.
Debt Securities
Structured Products
Derivatives