Assessor Resource

FNSFPL402A
Prepare financial plans to set strategies and guidelines

Assessment tool

Version 1.0
Issue Date: May 2024


The unit has application to job functions such as para-planners, trainee financial planners, financial planners and technical staff.

This unit describes the performance outcomes, skills and knowledge required to determine and prepare a financial plan according to organisational guidelines, where client's preferred strategies and key parameters have already been established by a qualified financial planner.

It encompasses confirming a financial plan objectives and scope, testing strategic assumptions, reviewing and settling a draft strategy and options according to organisational guidelines, and developing preliminary financial plans.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so the varying State or Territory requirements should be confirmed with the relevant body.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Employability Skills

This unit contains employability skills.



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

comply with relevant legislative requirements and industry codes of practice

confirm plan objectives and scope and test strategic assumptions and make appropriate checks on the proposed plan for its integrity and compliance

review and settle a draft strategy and options according to organisational guidelines and develop a preliminary financial plan

apply knowledge of financial products, financial markets and investment characteristics

work with other associated financial advisers

assess the impact of taxation, social security, economic and other government policies on client investment and financial requirements.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

observing processes and procedures in workplaces or role plays

verbal or written questioning on underpinning knowledge and skills which may include formal examinations

setting and reviewing workplace projects and business simulations/scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

communication skills to:

determine and confirm work requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

negotiate requirements with clients

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

use comparative analysis techniques and make financial calculations

use dealing system systems, spreadsheets and databases

use internet information

learning skills to maintain and apply knowledge of ethical principles and compliance legislation and requirements

literacy skills to:

read, write, edit and proofread documents to ensure clarity of meaning, accuracy and consistency of information

record, gather and consolidate information

organisational and time management skills to sequence tasks, meet timelines and arrange meetings

analytical skills to perform a needs analysis

Required knowledge

generic products available in the financial services industry

investment and savings vehicles, financial markets, asset classes and investment characteristics

investment risk factors and relationship to return expectations

relevant industry codes of practice

requirements related to the disclosure of capacity

the general impact of relevant economic, taxation and social security policy on a client's financial planning needs

the general impact of relevant estate planning considerations on a client's financial planning needs

the role of the financial planning adviser and the financial planning practice

the terms of the Acts and regulations affecting the industry

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Legislative requirements may include:

Australian Securities and Investments Commission (ASIC) Act, policy and guidelines

Australian Taxation Acts

Consumer Affairs Act

Consumer Credit Code

contract law

Corporations Act

industry codes of practice

Insurance Act

Life Act

Privacy Act

social security regulations

State and Territory legislation relevant to the financial services industry

Trade Practices Act

trust law.

Appropriate strategic options may include:

flexibility

integration of strategies and solutions

investigation and assessment of costs

liquidity

return on investment

safety

tax effectiveness and investment spread of relevant products available to the adviser

volatility of expected income and/or capital growth.

Products include but are not limited to:

cash deposits

derivatives

direct investments

equities

futures

insurance products

managed investments

superannuation.

Risk assessment can include:

asset allocation and investment spread

borrowing risk and gearing

economic situation

institutional risk

lifestyle choices

market and sector risks considering:

the economic cycle

fixed interest

property value

stock market value

risk and return expectations of the client

specific product risk

volatility of client income and capital.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Plan strategy and key parameters are checked with a qualified financial planner and the client 
Research topics are established and research results reviewed and compared to client requirements and expectations as set out in strategy and key parameters 
Current client situation is analysed to determine opportunities and constraints within strategy boundaries 
Plan objectives are developed for asset growth, income, risk, taxation and any other objectives set out in plan strategy 
Client related key assumptions are tested against the draft strategy 
Economic key assumptions in the strategy are tested and reviewed as required 
Legislative and regulatory assumptions, including taxation assumptions are tested against the strategy 
Clarifications are sought from the strategy author on any identified discrepancies 
Strategic options set by financial planner are analysed or modelled 
Inconsistencies in strategic options are identified and discussed with the strategy author 
Financial plan is developed according to established organisational guidelines 
Strategic options for review and a mode of presentation are selected according to organisational guidelines 
Each strategic option is reviewed with the strategy author including positives, negatives and risks for each option 
Broad agreement on strategies is established with the strategy author 
Specific products and options are selected that meet given strategy and key parameters 
Cash flow/liquidity, set capital preservation and/or estate planning requirements are incorporated consistent with given strategy and key parameters 
Recommendations for financial asset allocation structure are developed according to organisational guidelines 
Recommendations for changes to income and taxation arrangements are developed including referral advice to accountants/lawyers as appropriate 
Recommendations on risk management strategies and products are developed and incorporated according to organisational guidelines 
All recommendations are checked to ensure consistency with given strategy and key parameters, and meet specific objectives with a high dependability of outcome 
Description of anticipated fees and charges and information on internal and external complaints resolution procedures is incorporated into the plan where appropriate 
Preliminary financial plan is documented according to organisational guidelines and procedures 

Forms

Assessment Cover Sheet

FNSFPL402A - Prepare financial plans to set strategies and guidelines
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSFPL402A - Prepare financial plans to set strategies and guidelines

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: