Application
This unit describes the skills and knowledge required to determine and prepare a financial plan according to organisational guidelines, where a client’s preferred strategies and key parameters have already been established by a qualified financial planner. It encompasses confirming financial plan objectives and scope, testing strategic assumptions, reviewing and settling a draft strategy and options according to organisational guidelines, and developing preliminary financial plans.
It applies to individuals who work within a team and use specialised knowledge and systematic approaches 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.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Confirm plan objectives and scope | 1.1 Check plan strategy and key parameters with qualified financial planner and client 1.2 Establish research topics and review and compare research results to client requirements and expectations, as set out in strategy and key parameters 1.3 Analyse current client situation to determine opportunities and constraints within strategy boundaries 1.4 Develop plan objectives for asset growth, income, risk, taxation and any other objectives set out in plan strategy |
2. Test strategic assumptions | 2.1 Test client related key assumptions against draft strategy 2.2 Test and review economic key assumptions in strategy as required 2.3 Test legislative and regulatory assumptions, including taxation assumptions, against strategy 2.4 Obtain clarification from strategy author on any identified discrepancies |
3. Develop financial plan to set strategy | 3.1 Analyse and model strategic options set by financial planner 3.2 Identify and discuss inconsistencies in strategic options with strategy author 3.3 Develop financial plan according to established organisational guidelines |
4. Review and settle draft strategy and options | 4.1 Select strategic options for review and mode of presentation according to organisational guidelines 4.2 Review each strategic option with strategy author, including positives, negatives and risks for each option 4.3 Establish broad agreement on strategies with strategy author |
5. Develop preliminary financial plan | 5.1 Select specific products and options that meet given strategy and key parameters 5.2 Incorporate cash flow and liquidity, and set capital preservation and/or estate planning requirements consistent with given strategy and key parameters 5.3 Develop recommendations for financial asset allocation structure according to organisational guidelines 5.4 Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants and/or lawyers as appropriate 5.5 Develop recommendations on risk management strategies and products, and incorporate according to organisational guidelines 5.6 Check all recommendations to ensure consistency with given strategy and key parameters, and that they meet specific objectives with high dependability of outcome 5.7 Incorporate description of anticipated fees and charges, and information on internal and external complaints resolution procedures into the plan, where appropriate 5.8 Document preliminary financial plan according to organisational guidelines and procedures |
Evidence of Performance
Evidence of the ability to:
develop a preliminary financial plan for clients that:
complies with relevant legislative requirements, industry codes of practice and organisational procedures
confirms financial plan objectives and scope, and tests strategic assumptions
assesses the impact of taxation, social security, economic and other government policy on client investment and financial requirements
provides recommendations on risks and financial outlays
work with other associated financial advisers
accurately document a preliminary financial plan according to organisational procedures.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
describe the key features of:
generic products available in the financial services industry
investment and savings vehicles, financial markets, asset classes and investment characteristics
analyse investment risk factors and relationship to return expectations
describe the key features of relevant industry codes of practice
explain the requirements related to the disclosure of capacity
explain the general impact of relevant economic, taxation and social security policy on a client's financial planning needs
describe the general impact of relevant estate planning considerations on a client's financial planning needs
outline the role of the financial planning adviser and the financial planning practice
describe the key terms of relevant legislation and regulations affecting the financial planning industry.
Assessment Conditions
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.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1.3, 4.2, 5.6 | Interprets and analyses information from a range of sources and records and consolidates information relevant to requirements |
Writing | 1.1, 1.4, 2.4, 3.2, 3.3, 4.1-4.3, 5.2-5.8 | Prepares reports using format, terminology and conventions specific to requirements, audience and purpose Writes, edits and proofreads documents to ensure clarity of meaning, accuracy and consistency of information |
Oral Communication | 1.1, 2.4, 3.2, 4.2, 4.3 | Participates in verbal exchanges using active listening and questioning techniques to share, convey and clarify information Uses language, terminology and concepts appropriate to the audience and purpose |
Numeracy | 1.1-1.3, 2.2, 2.3, 3.1-3.3, 4.2, 5.2-5.7 | Uses mathematical equations to perform calculations and comparative analysis techniques to compare financial information |
Navigate the world of work | 2.3, 3.3, 4.1, 5.3, 5.5, 5.8 | Takes personal responsibility for ensuring that documentation and processes comply with policies, procedures and legislative requirements |
Interact with others | 1.1, 2.4, 3.2, 4.2, 4.3 | Selects and uses appropriate conventions and protocols to communicate with clients, colleagues and other stakeholders Maintains knowledge of compliance legislation necessary to perform own role |
Get the work done | 1.1-1.4, 2.1, 2.2, 2.4, 3.1, 3.2, 4.1-4.3, 5.1-5.8 | Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effectiveness Systematically gathers and analyses all relevant information and evaluates options to decide on appropriate financial plan components Uses the main features and functions of digital tools to complete work tasks |
Sectors
Financial planning