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

FNSFPL503A Mapping and Delivery Guide
Develop and prepare financial plan

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSFPL503A - Develop and prepare financial plan
Description This unit describes the performance outcomes, 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.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit has application to job roles such as para-planners, financial planners and support staff.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
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
  • Research results are reviewed and compared to client requirements and expectations
  • Current client situation is analysed to determine opportunities and constraints
  • Desired financial resource and market parameters are identified and assessed
  • Plan objectives are developed for asset growth, income, risk, taxation and any other objectives developed in consultation with the client
       
Element: Develop strategic assumptions
  • Client related and economic key assumptions are developed and tested
  • Legislative and regulatory requirements, including taxation assumptions, are identified and tested
  • Clarifications are sought from client or other professionals as required and strategic assumptions documented for client review
       
Element: Develop financial plan strategy
  • Initial strategic options are developed based on strategic assumptions and client specifications
  • Strategic options are analysed and modelled with any inappropriate options rejected
  • Supporting arguments for each final strategic option are developed and included in a draft overall strategy
  • Any necessary client checks or consultations are made to verify the plan strategy
       
Element: Develop preliminary financial plan
  • Specific products and options are selected to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required
  • Recommendations for financial asset allocation structure are developed including where provision is required for equities, trusts, partnerships, allocated pensions, and superannuation and planned capital expenditure
  • Recommendations for changes to income and taxation arrangements are developed including referral advice to accountants or lawyers as appropriate
  • Recommendations on risk management strategies and products are developed and incorporated in the plan
  • Anticipated fees and charges are incorporated into the preliminary plan with information on internal and external complaint resolution procedures available to the client
  • Preliminary financial plan is documented according to organisation guidelines and procedures
       
Element: Ensure compliance of financial plan with regulatory and organisational requirements
  • Preliminary financial plan is checked to ensure that the role of the representative/adviser is properly documented and complies with relevant acts, regulations and regulatory guidelines
  • Preliminary financial plan is assessed for its ability to successfully achieve objectives
  • Preliminary financial plan is checked to ensure that it complies with ethical and regulatory requirements
       
Element: Produce completed plan
  • Financial plan is produced in accordance with organisational quality control requirements
  • Supporting organisation and product explanatory information is attached
  • Regulatory and complaints information where required is attached
       


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 legislation and industry codes of practice and interpret and apply organisational operational requirements policies and procedures

establish plan objectives and scope, and develop strategic assumptions and a financial plan strategy ensuring compliance of the plan with regulatory and organisational requirements

develop a detailed financial plan that maximises the client's outcomes and reach client objectives and identify key assumptions on which the plan is based

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

assess impacts 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

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, 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.

Required skills

well-developed communication skills to:

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

provide appropriate and readily understood information to clients

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

research skills such as:

accessing and managing information

interpreting complex documentation

coordinating tasks

numeracy skills to accurately analyse, record and store data in accordance with organisational requirements

literacy skills to:

analyse information to ensure appropriateness to client needs, currency and accuracy

read and interpret complex documentation from a variety of sources

IT skills for accessing and using appropriate software such as spreadsheets and databases and using internet information

self-management skills for complying with ethical, legal and procedural requirements

learning skills to maintain knowledge of changes to compliance legislation and requirements

problem solving skills to identify any issues that have the potential to impact on the financial planning process or outcome and to develop options to resolve these issues if they arise

Required knowledge

generic products available in the financial services industry

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

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

investment risk factors and relationship to return expectations

principles of effective negotiation

relevant codes of practice

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

the general impact of relevant State and Territory planning considerations on the client's financial planning needs

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

the terms of the Acts and regulations affecting the financial services 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 and regulatory requirements may include:

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

Consumer Affairs Act

Consumer Credit Code

contract law

Corporations Act

industry codes of practice

Insurance Act

Life Insurance Act

Privacy Act

social security regulations

State and Territory legislation

Taxation Acts

Trade Practices Act

trust law.

Relevant ethical and regulatory requirements may include:

checking integrity for completeness

disclosure of any conflicts of interest

full disclosure of remuneration/fees and any other matter that may influence the representative's recommendations

guarantees of confidentiality

meeting relevant industry codes of conduct and practice

preparation in utmost good faith.

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
Research results are reviewed and compared to client requirements and expectations 
Current client situation is analysed to determine opportunities and constraints 
Desired financial resource and market parameters are identified and assessed 
Plan objectives are developed for asset growth, income, risk, taxation and any other objectives developed in consultation with the client 
Client related and economic key assumptions are developed and tested 
Legislative and regulatory requirements, including taxation assumptions, are identified and tested 
Clarifications are sought from client or other professionals as required and strategic assumptions documented for client review 
Initial strategic options are developed based on strategic assumptions and client specifications 
Strategic options are analysed and modelled with any inappropriate options rejected 
Supporting arguments for each final strategic option are developed and included in a draft overall strategy 
Any necessary client checks or consultations are made to verify the plan strategy 
Specific products and options are selected to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required 
Recommendations for financial asset allocation structure are developed including where provision is required for equities, trusts, partnerships, allocated pensions, and superannuation and planned capital expenditure 
Recommendations for changes to income and taxation arrangements are developed including referral advice to accountants or lawyers as appropriate 
Recommendations on risk management strategies and products are developed and incorporated in the plan 
Anticipated fees and charges are incorporated into the preliminary plan with information on internal and external complaint resolution procedures available to the client 
Preliminary financial plan is documented according to organisation guidelines and procedures 
Preliminary financial plan is checked to ensure that the role of the representative/adviser is properly documented and complies with relevant acts, regulations and regulatory guidelines 
Preliminary financial plan is assessed for its ability to successfully achieve objectives 
Preliminary financial plan is checked to ensure that it complies with ethical and regulatory requirements 
Financial plan is produced in accordance with organisational quality control requirements 
Supporting organisation and product explanatory information is attached 
Regulatory and complaints information where required is attached 

Forms

Assessment Cover Sheet

FNSFPL503A - 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:

Signature:

Date:

Assessment Record Sheet

FNSFPL503A - 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:

Date: