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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 plan objectives and scope
   • Review research results and compare to client requirements and expectations
   • Analyse current client situation to determine opportunities and constraints
   • Identify and assess desired financial resource and market parameters
   • Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client
2. Develop strategic assumptions
   • Develop and test client related and economic key assumptions
   • Identify and test legislative and regulatory requirements, including taxation assumptions
   • Seek clarification from client or other professionals as required and document strategic assumptions for client review
3. Develop financial plan strategy
   • Develop initial options based on strategic assumptions and client specifications
   • Analyse and model strategic options and reject any inappropriate options
   • Develop supporting arguments for each final strategic option and include in draft overall strategy
   • Conduct any necessary client checks or consultations to verify plan strategy
4. Develop preliminary financial plan
   • Select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required
   • Develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions and superannuation, and planned capital expenditure
   • Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate
   • Develop recommendations on risk management strategies and products, and incorporate in plan
   • Incorporate anticipated fees and charges into preliminary plan
   • Incorporate information on internal and external complaints and dispute resolution procedures available to client
   • Document preliminary financial plan according to organisational guidelines and procedures
5. Ensure compliance of financial plan with regulatory and organisational requirements
   • Check preliminary financial plan to ensure that role of representative or adviser is properly documented and complies with relevant Acts, regulations and regulatory guidelines
   • Assess preliminary financial plan for its ability to successfully achieve objectives
   • Check preliminary financial plan to ensure that it complies with ethical and regulatory requirements
6. Produce completed plan
   • Produce financial plan in accordance with organisational quality control requirements
   • Attach relevant supporting documentation relating to products, regulatory considerations and organisational processes, including internal and external complaints procedures

Performance Evidence

Evidence of the ability to:

analyse options and make justified recommendations to clients using use in-depth knowledge of the financial planning industry, industry regulations, codes of practice, financial products, financial markets and investment characteristics

develop a detailed financial plan that :

maximises the client’s outcomes and reaches client objectives

establishes plan objectives and scope, and develops strategic assumptions

complies with regulatory and organisational procedures

assesses impacts of taxation, social security, economic and other government policy on client investment and financial requirements.

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

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

describe the key features of generic products available in the financial services industry

discuss the impact of taxation, social security, economic and other government policy on client investment and financial requirements

describe the key features of investment and savings vehicles, financial markets, asset classes and investment characteristics

identify investment risk factors and describe relationship to return expectations

discuss the principles of effective negotiation

describe the internal and external complaints and dispute resolution procedures available to clients

describe the key features of relevant industry codes of practice

outline the key ethical considerations in developing and preparing financial plans

outline the general impact of relevant:

economic, taxation and social security policy on the client’s financial planning needs

state and territory planning considerations on the client’s financial planning needs

explain the role of the financial planning adviser and financial planning practice, including compliance requirements and the disclosure of capacity

describe the key features of legislation and regulations affecting the financial services industry.

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