The unit has application to job roles such as para-planners, technical staff and financial planners.

ELEMENT

PERFORMANCE CRITERIA

1. Evaluate the client's current situation and identify the issues

1.1. Analysis of the integrity of information provided by the client is undertaken

1.2. The client objectives are identified and quantified and tested for viability

1.3. The basis for strategy development is established based on confirmed objectives

2. Identify research requirements and parameters

2.1. Aims and objectives of research including strategy, product and performance parameters are established against client requirements and expectations with all issues identified

2.2. A wide range of relevant internal and external information resources required for the research are identified and accessed

2.3. Timeframes are established and requests for information prioritised to ensure milestones are met

3. Extract and analyse information according to research requirements and parameters

3.1. Data extraction criteria are established that are relevant to intended use and client requirements

3.2. Trends are identified to provide meaningful information on performance of possible strategies, products and markets

3.3. Risk assessment is made of strategies and products identified through the research

3.4. Financial products are analysed within appropriate timeframes to ensure currency of decision making

3.5. Obtained information is prioritised according to client requirements and expectations

3.6. Issues that require specialist research or advice are identified and appropriate advice obtained

4. Summarise research information

4.1. Information on financial strategies and products is collated and checked against research specification

4.2. Written performance, trend and risk analyses are prepared and checked against research specification

4.3. Any qualifications or issues for further research are documented

Required skills

communication skills to:

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

establish rapport with clients and to liaise with other planning team members

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 documentation

coordinating tasks

numeracy and IT skills such as:

identifying and using analytical techniques

accessing and using appropriate software such as spreadsheets and databases

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

organisational and time management skills to sequence tasks, meet timelines and arrange meetings

problem 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

Required knowledge

a wide range of financial products and services

financial industry information sources and research techniques

financial planning strategies

organisation policies, objectives and guidelines

relevant legislation governing trusts and companies

relevant acts and regulations and code of practice requirements

risks and implications associated with use of financial products and services

taxation and social security systems and regulations and their effect on specified financial products

theories of investment, portfolio management and management of investment and risk

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 legislative and regulatory requirements, relevant industry codes of practice and organisational operating guidelines

evaluate the client's current situation and identify issues

identify research requirements and parameters and extract and analyse information

use a wide range of available information sources and identify factors which may affect research and accurately summarise research information to test its integrity

use comprehensive knowledge of available products and services and their associated risks

accurately document research for financial plans and summarise and prioritise findings that are validated against client 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

setting and reviewing workplace projects and business simulations/scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Information may be in regard to:

codes of practice

economic situation

environmental considerations

internal comparisons

markets

political environment

regulatory requirements

social environment.

Client expectations and requirements may include:

comprehensive financial planning

portfolio advice

strategic or product specific advice and/or service.

Timeframe considerations may include

client personal and financial changes

competitors

legislative and regulatory requirements

market cycles

marketing strategy

procedures revision

product release dates.

Unit sector

Financial planning

This unit contains employability skills.