Disclosure and plain-language transparency
What you'll be able to do
Real disclosure means the client can explain, in plain words, what they're buying, what it costs, and what could go wrong — before they decide.
- Disclose key features, risks, costs, compensation, and the relevant documents.
- Plain language is required — disclosure the client can't understand doesn't count.
- Confirm understanding by having the client explain it back.
Disclosure is how the client gives informed consent. Before and at the point of sale, they must understand the product's key features and risks, what it costs (including the MER and any charges), how you're compensated, and the relevant documents — for funds, the Fund Facts; for insurance, the policy illustration and contract. Disclosure that the client can't understand isn't real disclosure.
Plain language is therefore an ethical requirement, not just a courtesy. If a client nods along to jargon they don't follow, you haven't disclosed — you've performed disclosure. The test is whether they could explain back, in their own words, what they're buying, what it costs, and what could go wrong.
Timing matters too: key disclosures belong before the decision, not buried in paperwork signed after. Build the habit of pausing to confirm understanding — 'so in your words, what does this cost you each year?' — which both satisfies the obligation and builds trust.
Key points
- Disclose key features, risks, costs, compensation, and the relevant documents.
- Plain language is required — disclosure the client can't understand doesn't count.
- Confirm understanding by having the client explain it back.
- Key disclosures belong before the decision, not buried after.
Examples
After presenting a fund, the rep asks, 'In your words, what will this cost you each year and what's the main risk?' The answer reveals whether real disclosure happened.
Pitfalls
- Mistaking a signature on dense paperwork for informed consent.
- Using jargon the client nods at but doesn't actually understand.
Ask your sales coach
In a real Adept rollout this routes to your firm's compliance-approved Claude project; in the demo it opens a fresh Claude chat. Never share real client details.