Functional Connect 1&2

In which of the following situations would a client be categorised as UHNW?

A. The client has less than USD 100,000 in net assets, but is an heir to a substantial fortune and currently works in his father’s family office.

B. The client is a heavily borrowed business woman (owing USD 60 million) working on the initial public offering of her business and wants to cash out a significant portion of her 40% share of the illiquid business valued conservatively at around USD 100 million.

C. The client is an unemployed professional owning only USD 300,000 in net assets, but has significant responsibility managing a USD 31 million philanthropic trust bequeathed to charity by his now deceased father.

• A & B

• A & C

• B & C

• A, B, & C

Private wealth management provides which of the following services

A. Investment management, risk mitigation

B. Financial planning, Estate planning

C. Tax planning, Retirement planning

• A only

• A & B only

• A & C only

• A, B, & C

A wealth management business employing a partial open investment architecture will produce, advise on, and sell which of the following?

• In-house investments only

• External investments only

• Both in-house and external investments

Which of the following is a benefit for a client with an actively-managed discretionary portfolio investment service?

• Higher management fees

• Increased transaction costs

• Tax events being triggered

• Access to a professional portfolio manager

Order the list of activities an HNWI has to go through after availing private banking service

A. WEALTH AND FINANCIAL DIAGNOSIS

B. SOLUTION DEFINITION

C. CLIENT ONBOARDING

D. IMPLEMENTATION AND FOLLOW UP

• B, C, D,A

• C, A, B, D

• A, B, C, D

XYZ is a privately-owned company specializing in low cost ventilator manufacturing. Due to prevalent pandemic, it has seen huge surge in demand. Hence, its management has decided to scale up manufacturing capacity (Capex).

Over last 6 month, the market valuation of company has grown 3 times to INR 1500 Crore and the management think it is an ideal time to go public (get listed).

Q: To meet its capital expenditure need of INR 200 Cr, XYZ should reach out to

• Investment bank

• Retail bank

• Corporate bank

XYZ is a privately-owned company specializing in low cost ventilator manufacturing. Due to prevalent pandemic, it has seen huge surge in demand. Hence, its management has decided to scale up manufacturing capacity (Capex).

Over last 6 month, the market valuation of company has grown 3 times to INR 1500 Crore and the management think it is an ideal time to go public (get listed).

Q: To open the salary account of newly added employee, XYZ should reach out to

• Investment bank

• Retail bank

• Corporate bank

XYZ is a privately-owned company specializing in low cost ventilator manufacturing. Due to prevalent pandemic, it has seen huge surge in demand. Hence, its management has decided to scale up manufacturing capacity (Capex).

Over last 6 month, the market valuation of company has grown 3 times to INR 1500 Crore and the management think it is an ideal time to go public (get listed).

Q: To start with the process of getting listed on exchange, XYZ should reach out to

• Investment bank

• Retail bank

• Corporate bank

XYZ is a privately-owned company specializing in low cost ventilator manufacturing. Due to prevalent pandemic, it has seen huge surge in demand. Hence, its management has decided to scale up manufacturing capacity (Capex).

Over last 6 month, the market valuation of company has grown 3 times to INR 1500 Crore and the management think it is an ideal time to go public (get listed).

Q: Promoters of XYZ are HNWI and wants to explore investment opportunity for their investible wealth. They should connect with

• Investment bank

• Wealth and asset management bank

• Wealth and asset management bank

• Corporate bank

Which of the following statements about investment services to HNW clients is true?

• Private banks and wealth management firms do not give advice

• Investment selection is about the actual choice of security, asset, or multiple asset classes, while portfolio management is about identifying, prioritizing, authorizing, managing, and controlling investments

• Portfolio management is about the actual choice of security, asset, or multiple asset classes, while investment is about identifying, prioritizing, authorizing, managing, and controlling investments.