Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners
FNSFPL604A Mapping and Delivery Guide Develop complex and innovative financial planning strategies
Version 1.0 Issue Date: May 2024
Qualification
-
Unit of Competency
FNSFPL604A - Develop complex and innovative financial planning strategies
Description
This unit describes the performance outcomes, 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.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 senior financial planners, para-planners and senior technical 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 and the current client situation analysed to determine opportunities and constraints
Special features of client situation are reviewed such as high asset, income or expenditure requirements, complex taxation and or legal issues, or complex estate planning issues
Desired financial resource and market parameters are identified and plan objectives are developed for asset growth, income, risk, estate planning and any other objectives developed in consultation with client
Taxation or estate objectives are identified and discussed with the client
Element: Develop strategic assumptions
Client related and economic key assumptions are developed and tested
Legislative and regulatory assumptions, including taxation assumptions are developed and tested
Clarifications are sought from client or other financial services professionals as required and strategic assumptions documented for client review
Element: Develop innovative or complex financial strategy
Initial strategic options are developed based on strategic assumptions and client specifications
Strategic options are analysed, modelled and prioritised with inappropriate strategic options rejected
Supporting arguments for each strategic option are developed and included in a draft overall strategy
Where required, strategy is integrated into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers in order for the financial plan to achieve maximum synergy and benefit for the client
Strategy is reviewed for best practice compliance and risk management
Fees and charges analysis is included for the strategy options
Best practice ethical behaviour is maintained 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
Strategic options for review with the client and a suitable mode of presentation are selected
Each strategic option is fully reviewed with client including positives, negatives and risks for each option
Representative ensures that implication of each option, including regulatory and legal implications for the client's situation, needs and goals is understood
Representative ensures that client understands where additional professional advice is needed
Broad agreement on strategies is established with client including resolution of any concerns and issues raised by the client
Element: Develop preliminary financial plan for client
A full investigation of products and options is conducted including non-standard and/or innovative products and products and options selected to meet agreed strategy
Complex or innovative products are specifically identified and explanatory material developed or obtained
Requirements for cash flow, liquidity, capital preservation or estate planning are incorporated
Recommendations for financial asset allocation structure is developed, including where required, provision for equities, trusts, partnerships, allocated pensions, and superannuation
Recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to the client strategy are developed including referral advice to accountants or lawyers as appropriate
Recommendations on risk management strategies and products are developed and incorporated into the plan
Description of anticipated fees and charges are incorporated into the plan
Information on internal and external complaints resolution procedures is incorporated into the preliminary plan
Preliminary financial plan is documented according to organisation guidelines and procedures
Element: Ensure compliance of financial plan with regulatory and organisation requirements
Preliminary financial plan is checked to ensure that the role of the representative or adviser is properly documented
Preliminary financial plan is checked to ensure compliance with relevant Acts, legislation and regulatory guidelines
Preliminary financial plan is assessed for its ability to successfully achieve stated objectives
Preliminary financial plan is checked to ensure that it complies with ethical and regulatory requirements
Element: Produce client financial plan
Financial plan is produced in accordance with organisation presentation requirements
Supporting organisation, product explanatory documentation and 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:
develop detailed financial plans designed to maximise the client's outcomes and reach client objectives which incorporate elements that have arisen from research
develop plans which address complex needs and issues and describe key assumptions on which the plan is based
analyse strategic options and make justified recommendations
test and/or make appropriate checks on the proposed plan for its integrity and compliance
apply in-depth knowledge of the financial planning industry, industry regulations and codes of practice, financial products, financial markets and investment characteristics and the roles of other associated financial advisers
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
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills
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
highly developed communication skills to:
determine and confirm complex client requirements, using questioning and active listening as required
liaise with others, share information, listen and understand
use language and concepts appropriate to cultural differences
well-developed research and analysis skills for:
accessing and managing comprehensive and complex information
interpreting complex documentation
forming a holistic perspective of complex situations and identify implications
numeracy skills to accurately analyse, record and store data in accordance with organisational requirements
superior literacy skills for analysingcomplex information and products to ensure appropriateness to client needs, currency and accuracy
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
highly developedproblem solving skills to identify any issues that have the potential to impact on the planning process or outcome and to develop options to resolve these issues when they arise
organisational and time management skills to sequence tasks, meet timelines and arrange meetings
critical reasoning and judgement skills for forming recommendations in operational situations
Required knowledge
investment and savings vehicles, financial markets, asset classes and investment characteristics
investment risk factors and relationship to return expectations
principles of effective negotiation
products available in the financial services industry
relevant industry codes of practice
requirements related to the disclosure of capacity
the characteristics of the financial planning industry including the terms of the Acts and regulations affecting the industry
the impact of relevant economic, taxation and social security policy on the client's financial planning needs
the impact of relevant estate planning considerations on the client's financial planning needs
the processes of effective communication
the role of the financial planning adviser and the financial planning practice
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.
Appropriate strategic options and solutions may include:
flexibility
investigation and assessment of costs
liquidity
products available to the adviser
return on investment
safety
tax effectiveness and investment spread of relevant
volatility of expected income or capital growth.
Risk assessment may include:
asset allocation and investment spread
borrowing risk or gearing
economic
institutional risk
market and sector risks including:
economic cycle
fixed interest
property
stock market
risk factors and return expectations of the client
specific product risk
volatility of income and capital.
Products include, but are not limited to:
cash deposits
derivatives
direct investments
equities
futures
insurance products
managed investments
superannuation
trusts.
Legislation and regulatory guidelines 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.
Ethical and regulatory requirements may include:
disclosure of any conflicts of interest
full disclosure of remuneration and fees and any other matter that may influence the representative's recommendations
guarantees of confidentiality
integrity checks
preparation in utmost good faith
relevant industry codes of conduct and practice.
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 and the current client situation analysed to determine opportunities and constraints
Special features of client situation are reviewed such as high asset, income or expenditure requirements, complex taxation and or legal issues, or complex estate planning issues
Desired financial resource and market parameters are identified and plan objectives are developed for asset growth, income, risk, estate planning and any other objectives developed in consultation with client
Taxation or estate objectives are identified and discussed with the client
Client related and economic key assumptions are developed and tested
Legislative and regulatory assumptions, including taxation assumptions are developed and tested
Clarifications are sought from client or other financial services 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, modelled and prioritised with inappropriate strategic options rejected
Supporting arguments for each strategic option are developed and included in a draft overall strategy
Where required, strategy is integrated into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers in order for the financial plan to achieve maximum synergy and benefit for the client
Strategy is reviewed for best practice compliance and risk management
Fees and charges analysis is included for the strategy options
Best practice ethical behaviour is maintained including full disclosure of any potential conflicts of interest and areas where advice should be sought from other professionals.
Strategic options for review with the client and a suitable mode of presentation are selected
Each strategic option is fully reviewed with client including positives, negatives and risks for each option
Representative ensures that implication of each option, including regulatory and legal implications for the client's situation, needs and goals is understood
Representative ensures that client understands where additional professional advice is needed
Broad agreement on strategies is established with client including resolution of any concerns and issues raised by the client
A full investigation of products and options is conducted including non-standard and/or innovative products and products and options selected to meet agreed strategy
Complex or innovative products are specifically identified and explanatory material developed or obtained
Requirements for cash flow, liquidity, capital preservation or estate planning are incorporated
Recommendations for financial asset allocation structure is developed, including where required, provision for equities, trusts, partnerships, allocated pensions, and superannuation
Recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to the client strategy are developed including referral advice to accountants or lawyers as appropriate
Recommendations on risk management strategies and products are developed and incorporated into the plan
Description of anticipated fees and charges are incorporated into the plan
Information on internal and external complaints resolution procedures is incorporated into the preliminary plan
Preliminary financial plan is documented according to organisation guidelines and procedures
Preliminary financial plan is checked to ensure that the role of the representative or adviser is properly documented
Preliminary financial plan is checked to ensure compliance with relevant Acts, legislation and regulatory guidelines
Preliminary financial plan is assessed for its ability to successfully achieve stated objectives
Preliminary financial plan is checked to ensure that it complies with ethical and regulatory requirements
Financial plan is produced in accordance with organisation presentation requirements
Supporting organisation, product explanatory documentation and regulatory and complaints information where required is attached
Forms
Assessment Cover Sheet
FNSFPL604A - Develop complex and innovative financial planning strategies
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
FNSFPL604A - Develop complex and innovative financial planning strategies
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