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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

  1. Establish relationship with client
  2. Identify client’s objectives, needs and financial situation
  3. Analyse client’s objectives, needs, financial situation and risk profile
  4. Develop appropriate strategies and solutions
  5. Present appropriate strategies and solutions to client
  6. Negotiate financial plan, policy and/or transaction with client
  7. Coordinate implementation of agreed plan, policy and/or transaction
  8. Complete and maintain necessary documentation
  9. Provide ongoing service where requested by client
  10. Identify client’s objectives, needs and financial situation
  11. Analyse client’s objectives, needs, financial situation and risk profile

Performance Evidence

Evidence of the ability to:

interpret and comply with industry regulations and codes of practice

analyse client’s needs, financial situation and risk profile, and prepare appropriate strategies or solutions relating to financial planning

provide accurate and ethical advice on financial planning products and services

implement the plan, policy or transaction once agreed by the client and complete documentation accurately.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.


Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must satisfy generic and specialist knowledge requirements relevant to the products and activities in which advice is given.

Generic knowledge

analyse and provide an overview of the economic environment including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

analyse and provide a detailed explanation of the operation of financial markets including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

outline financial products, including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products.

Specialist knowledge

outline theories of investment, portfolio management and management of investment and risk including:

range of financial products

types of investment products including cash, fixed interest, property, equities and managed investments

types of financial risk products including risk insurance and derivatives

investment concepts

investment strategies

identification of types of risk

client risk profile

provide an analysis of advisory functions covering:

role of financial planner

participants in the advisory services market

range of services provided

financial planning process

profile and financial information of the client

appropriateness of a risk assessment

discuss the legal environment including disclosure and compliance covering:

role of the representative or adviser

relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act

relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser's recommendation

relevant industry standards and codes of conduct

regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements

complaints resolution procedures (external and internal)

provide an overview of the Australian taxation and social security systems covering:

relevant taxation laws and regulations

effects of taxation on particular financial products

effects of taxation on financial strategies of individuals and entities

explain theories of estate planning including allowable investments, enduring and non-enduring powers of attorney, and share purchase agreements

outline management and investment strategies relevant to estate planning

explain taxation laws and regulations relevant to estate planning.