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

FNSFPL604 Mapping and Delivery Guide
Develop complex and innovative financial planning strategies

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency FNSFPL604 - Develop complex and innovative financial planning strategies
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to determine and prepare a complex or innovative financial plan or plans which are, for commercial relationship reasons, identified as requiring development to a higher than normal standard. It encompasses establishing plan objectives and scope, and developing strategic assumptions and innovative or complex financial strategies.It applies to experienced individuals who use specialised knowledge, systematic approaches and strong analytical skills to develop recommendations and solutions to meet complex requirements.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 and compare research results with client requirements and expectations, and analyse current client situation to determine opportunities and constraints
  • Review special features of client situation such as high asset, income or expenditure requirements, complex taxation and/or legal issues, or complex estate planning issues
  • Identify desired financial resource and market parameters and develop plan objectives for asset growth, income, risk, estate planning and any other objectives developed in consultation with client
  • Identify taxation or estate objectives and discuss with client
       
Element: Develop strategic assumptions
  • Develop and test client related and economic key assumptions
  • Develop and test legislative, regulatory and taxation assumptions
  • Seek clarification from client or other financial services professionals as required and document strategic assumptions for client review
       
Element: Develop innovative or complex financial strategy
  • Develop initial options based on strategic assumptions and client specifications
  • Analyse, model and prioritise strategic options and reject inappropriate strategic options
  • Develop supporting arguments for each strategic option and include in draft overall strategy
  • Integrate strategy, where required, into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers for financial plan to achieve maximum synergy and benefit for client
  • Review strategy for best practice compliance and risk management
  • Include fee and charge analysis for strategy options
  • Maintain best practice ethical behaviour, including full disclosure of any potential conflicts of interest and areas where advice should be sought from other professionals
       
Element: Review and settle draft strategy and options with client
  • Select strategic options for review with client and suitable mode of presentation
  • Fully review each strategic option with client, including positives, negatives and risks for each option
  • Ensure that implication of each option, including regulatory and legal implications for client’s situation, needs and goals, is explained to client and understood
  • Ensure that client understands where additional professional advice is needed
  • Establish broad agreement on strategies with client and resolve any concerns and issues raised by client
       
Element: Develop preliminary financial plan for client
  • Conduct full investigation of products and options, including non-standard and/or innovative products, and select products and options to meet agreed strategy
  • Identify complex or innovative products and develop or obtain explanatory material
  • Incorporate requirements for cash flow, liquidity, capital preservation or estate planning
  • Develop recommendations for financial asset allocation structure including, where required, provision for equities, trusts, partnerships, allocated pensions and superannuation
  • Develop recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to client strategy, and provide referral advice to accountants or lawyers as appropriate
  • Develop recommendations on risk management strategies and products, and incorporate into plan
  • Incorporate description of anticipated fees and charges into plan
  • Incorporate information on internal and external complaints resolution procedures into preliminary plan
  • 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
  • Check preliminary financial plan to ensure compliance with relevant Acts, legislation and regulatory guidelines
  • Assess preliminary financial plan for its ability to successfully achieve stated objectives
  • Check preliminary financial plan to ensure that it complies with ethical and regulatory requirements
       
Element: Produce client financial plan
  • Produce financial plan in accordance with organisational presentation requirements
  • Attach supporting organisation and product explanatory documentation, and regulatory and complaints information where required
       


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 and compare research results with client requirements and expectations, and analyse current client situation to determine opportunities and constraints

1.2 Review special features of client situation such as high asset, income or expenditure requirements, complex taxation and/or legal issues, or complex estate planning issues

1.3 Identify desired financial resource and market parameters and develop plan objectives for asset growth, income, risk, estate planning and any other objectives developed in consultation with client

1.4 Identify taxation or estate objectives and discuss with client

2. Develop strategic assumptions

2.1 Develop and test client related and economic key assumptions

2.2 Develop and test legislative, regulatory and taxation assumptions

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

3. Develop innovative or complex financial strategy

3.1 Develop initial options based on strategic assumptions and client specifications

3.2 Analyse, model and prioritise strategic options and reject inappropriate strategic options

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

3.4 Integrate strategy, where required, into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers for financial plan to achieve maximum synergy and benefit for client

3.5 Review strategy for best practice compliance and risk management

3.6 Include fee and charge analysis for strategy options

3.7 Maintain best practice ethical behaviour, including full disclosure of any potential conflicts of interest and areas where advice should be sought from other professionals

4. Review and settle draft strategy and options with client

4.1 Select strategic options for review with client and suitable mode of presentation

4.2 Fully review each strategic option with client, including positives, negatives and risks for each option

4.3 Ensure that implication of each option, including regulatory and legal implications for client’s situation, needs and goals, is explained to client and understood

4.4 Ensure that client understands where additional professional advice is needed

4.5 Establish broad agreement on strategies with client and resolve any concerns and issues raised by client

5. Develop preliminary financial plan for client

5.1 Conduct full investigation of products and options, including non-standard and/or innovative products, and select products and options to meet agreed strategy

5.2 Identify complex or innovative products and develop or obtain explanatory material

5.3 Incorporate requirements for cash flow, liquidity, capital preservation or estate planning

5.4 Develop recommendations for financial asset allocation structure including, where required, provision for equities, trusts, partnerships, allocated pensions and superannuation

5.5 Develop recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to client strategy, and provide referral advice to accountants or lawyers as appropriate

5.6 Develop recommendations on risk management strategies and products, and incorporate into plan

5.7 Incorporate description of anticipated fees and charges into plan

5.8 Incorporate information on internal and external complaints resolution procedures into preliminary plan

5.9 Document preliminary financial plan according to organisational guidelines and procedures

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

6.1 Check preliminary financial plan to ensure that role of representative or adviser is properly documented

6.2 Check preliminary financial plan to ensure compliance with relevant Acts, legislation and regulatory guidelines

6.3 Assess preliminary financial plan for its ability to successfully achieve stated objectives

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

7. Produce client financial plan

7.1 Produce financial plan in accordance with organisational presentation requirements

7.2 Attach supporting organisation and product explanatory documentation, and regulatory and complaints information where required

Evidence of the ability to:

develop detailed financial plans that:

maximise the client’s outcomes and reach client objectives

incorporate elements that have arisen from research

address complex needs and issues

describe the key assumptions on which the plan is based

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

analyse strategic options and make justified recommendations.

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 and characteristics of:

the financial planning industry, investment and savings vehicles, financial markets, asset classes and investment characteristics

legislation, regulations and codes of practice affecting the industry

products available in the financial services industry

relevant industry codes of practice

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

explain investment risk factors and relationship to return expectations

describe requirements related to the disclosure of capacity

outline the impact of the following on the client's financial planning needs:

relevant economic, taxation and social security policy

relevant estate planning considerations

describe the key features of effective communication processes, including principles of effective negotiation.

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 and compare research results with client requirements and expectations, and analyse current client situation to determine opportunities and constraints

1.2 Review special features of client situation such as high asset, income or expenditure requirements, complex taxation and/or legal issues, or complex estate planning issues

1.3 Identify desired financial resource and market parameters and develop plan objectives for asset growth, income, risk, estate planning and any other objectives developed in consultation with client

1.4 Identify taxation or estate objectives and discuss with client

2. Develop strategic assumptions

2.1 Develop and test client related and economic key assumptions

2.2 Develop and test legislative, regulatory and taxation assumptions

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

3. Develop innovative or complex financial strategy

3.1 Develop initial options based on strategic assumptions and client specifications

3.2 Analyse, model and prioritise strategic options and reject inappropriate strategic options

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

3.4 Integrate strategy, where required, into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers for financial plan to achieve maximum synergy and benefit for client

3.5 Review strategy for best practice compliance and risk management

3.6 Include fee and charge analysis for strategy options

3.7 Maintain best practice ethical behaviour, including full disclosure of any potential conflicts of interest and areas where advice should be sought from other professionals

4. Review and settle draft strategy and options with client

4.1 Select strategic options for review with client and suitable mode of presentation

4.2 Fully review each strategic option with client, including positives, negatives and risks for each option

4.3 Ensure that implication of each option, including regulatory and legal implications for client’s situation, needs and goals, is explained to client and understood

4.4 Ensure that client understands where additional professional advice is needed

4.5 Establish broad agreement on strategies with client and resolve any concerns and issues raised by client

5. Develop preliminary financial plan for client

5.1 Conduct full investigation of products and options, including non-standard and/or innovative products, and select products and options to meet agreed strategy

5.2 Identify complex or innovative products and develop or obtain explanatory material

5.3 Incorporate requirements for cash flow, liquidity, capital preservation or estate planning

5.4 Develop recommendations for financial asset allocation structure including, where required, provision for equities, trusts, partnerships, allocated pensions and superannuation

5.5 Develop recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to client strategy, and provide referral advice to accountants or lawyers as appropriate

5.6 Develop recommendations on risk management strategies and products, and incorporate into plan

5.7 Incorporate description of anticipated fees and charges into plan

5.8 Incorporate information on internal and external complaints resolution procedures into preliminary plan

5.9 Document preliminary financial plan according to organisational guidelines and procedures

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

6.1 Check preliminary financial plan to ensure that role of representative or adviser is properly documented

6.2 Check preliminary financial plan to ensure compliance with relevant Acts, legislation and regulatory guidelines

6.3 Assess preliminary financial plan for its ability to successfully achieve stated objectives

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

7. Produce client financial plan

7.1 Produce financial plan in accordance with organisational presentation requirements

7.2 Attach supporting organisation and product explanatory documentation, and regulatory and complaints information where required

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 and compare research results with client requirements and expectations, and analyse current client situation to determine opportunities and constraints 
Review special features of client situation such as high asset, income or expenditure requirements, complex taxation and/or legal issues, or complex estate planning issues 
Identify desired financial resource and market parameters and develop plan objectives for asset growth, income, risk, estate planning and any other objectives developed in consultation with client 
Identify taxation or estate objectives and discuss with client 
Develop and test client related and economic key assumptions 
Develop and test legislative, regulatory and taxation assumptions 
Seek clarification from client or other financial services professionals as required and document strategic assumptions for client review 
Develop initial options based on strategic assumptions and client specifications 
Analyse, model and prioritise strategic options and reject inappropriate strategic options 
Develop supporting arguments for each strategic option and include in draft overall strategy 
Integrate strategy, where required, into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers for financial plan to achieve maximum synergy and benefit for client 
Review strategy for best practice compliance and risk management 
Include fee and charge analysis for strategy options 
Maintain best practice ethical behaviour, including full disclosure of any potential conflicts of interest and areas where advice should be sought from other professionals 
Select strategic options for review with client and suitable mode of presentation 
Fully review each strategic option with client, including positives, negatives and risks for each option 
Ensure that implication of each option, including regulatory and legal implications for client’s situation, needs and goals, is explained to client and understood 
Ensure that client understands where additional professional advice is needed 
Establish broad agreement on strategies with client and resolve any concerns and issues raised by client 
Conduct full investigation of products and options, including non-standard and/or innovative products, and select products and options to meet agreed strategy 
Identify complex or innovative products and develop or obtain explanatory material 
Incorporate requirements for cash flow, liquidity, capital preservation or estate planning 
Develop recommendations for financial asset allocation structure including, where required, provision for equities, trusts, partnerships, allocated pensions and superannuation 
Develop recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to client strategy, and provide referral advice to accountants or lawyers as appropriate 
Develop recommendations on risk management strategies and products, and incorporate into plan 
Incorporate description of anticipated fees and charges into plan 
Incorporate information on internal and external complaints resolution procedures into preliminary plan 
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 
Check preliminary financial plan to ensure compliance with relevant Acts, legislation and regulatory guidelines 
Assess preliminary financial plan for its ability to successfully achieve stated objectives 
Check preliminary financial plan to ensure that it complies with ethical and regulatory requirements 
Produce financial plan in accordance with organisational presentation requirements 
Attach supporting organisation and product explanatory documentation, and regulatory and complaints information where required 

Forms

Assessment Cover Sheet

FNSFPL604 - Develop complex and innovative financial planning strategies
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Assessment Record Sheet

FNSFPL604 - Develop complex and innovative financial planning strategies

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