Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSFPL503 Mapping and Delivery Guide
Develop and prepare financial plan

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency FNSFPL503 - Develop and prepare financial plan
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to develop and prepare a financial plan that meets the client’s needs. It encompasses establishing plan objectives and scope, and developing strategic assumptions, strategies and a preliminary financial plan compliant with regulatory and organisational requirements.It applies to individuals who, within their level of authority, manage relationships, apply systematic approaches and use specialised knowledge to recommend customised solutions for a diverse range of clients.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial planning field of work and include access to:

office equipment, technology, software and consumables.

Assessors must satisfy NVR/AQTF assessor requirements.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: 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
       
Element: 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
       
Element: 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
       
Element: 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
       
Element: 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
       
Element: 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
       


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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish plan objectives and scope

1.1 Review research results and compare to client requirements and expectations

1.2 Analyse current client situation to determine opportunities and constraints

1.3 Identify and assess desired financial resource and market parameters

1.4 Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client

2. Develop strategic assumptions

2.1 Develop and test client related and economic key assumptions

2.2 Identify and test legislative and regulatory requirements, including taxation assumptions

2.3 Seek clarification from client or other professionals as required and document strategic assumptions for client review

3. Develop financial plan strategy

3.1 Develop initial options based on strategic assumptions and client specifications

3.2 Analyse and model strategic options and reject any inappropriate options

3.3 Develop supporting arguments for each final strategic option and include in draft overall strategy

3.4 Conduct any necessary client checks or consultations to verify plan strategy

4. Develop preliminary financial plan

4.1 Select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required

4.2 Develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions and superannuation, and planned capital expenditure

4.3 Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate

4.4 Develop recommendations on risk management strategies and products, and incorporate in plan

4.5 Incorporate anticipated fees and charges into preliminary plan

4.6 Incorporate information on internal and external complaints and dispute resolution procedures available to client

4.7 Document preliminary financial plan according to organisational guidelines and procedures

5. Ensure compliance of financial plan with regulatory and organisational requirements

5.1 Check preliminary financial plan to ensure that role of representative or adviser is properly documented and complies with relevant Acts, regulations and regulatory guidelines

5.2 Assess preliminary financial plan for its ability to successfully achieve objectives

5.3 Check preliminary financial plan to ensure that it complies with ethical and regulatory requirements

6. Produce completed plan

6.1 Produce financial plan in accordance with organisational quality control requirements

6.2 Attach relevant supporting documentation relating to products, regulatory considerations and organisational processes, including internal and external complaints procedures

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.

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.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish plan objectives and scope

1.1 Review research results and compare to client requirements and expectations

1.2 Analyse current client situation to determine opportunities and constraints

1.3 Identify and assess desired financial resource and market parameters

1.4 Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client

2. Develop strategic assumptions

2.1 Develop and test client related and economic key assumptions

2.2 Identify and test legislative and regulatory requirements, including taxation assumptions

2.3 Seek clarification from client or other professionals as required and document strategic assumptions for client review

3. Develop financial plan strategy

3.1 Develop initial options based on strategic assumptions and client specifications

3.2 Analyse and model strategic options and reject any inappropriate options

3.3 Develop supporting arguments for each final strategic option and include in draft overall strategy

3.4 Conduct any necessary client checks or consultations to verify plan strategy

4. Develop preliminary financial plan

4.1 Select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required

4.2 Develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions and superannuation, and planned capital expenditure

4.3 Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate

4.4 Develop recommendations on risk management strategies and products, and incorporate in plan

4.5 Incorporate anticipated fees and charges into preliminary plan

4.6 Incorporate information on internal and external complaints and dispute resolution procedures available to client

4.7 Document preliminary financial plan according to organisational guidelines and procedures

5. Ensure compliance of financial plan with regulatory and organisational requirements

5.1 Check preliminary financial plan to ensure that role of representative or adviser is properly documented and complies with relevant Acts, regulations and regulatory guidelines

5.2 Assess preliminary financial plan for its ability to successfully achieve objectives

5.3 Check preliminary financial plan to ensure that it complies with ethical and regulatory requirements

6. Produce completed plan

6.1 Produce financial plan in accordance with organisational quality control requirements

6.2 Attach relevant supporting documentation relating to products, regulatory considerations and organisational processes, including internal and external complaints procedures

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
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 
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 
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 
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 
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 
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 

Forms

Assessment Cover Sheet

FNSFPL503 - Develop and prepare financial plan
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:

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Date:

Assessment Record Sheet

FNSFPL503 - Develop and prepare financial plan

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:

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