Application
This unit describes the skills and knowledge required to determine the financial requirements and expectations of clients. It encompasses informing clients of the financial planning process and service, obtaining relevant information on their existing financial situations and expectations with respect to the financial planning service offered by the representative, and preparing and updating necessary documentation.
It applies to individuals who manage relationships with clients and colleagues and use specialised knowledge and systematic approaches to determine a customised service.
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. Inform client of financial planning process and services | 1.1 Explain to client financial planning process and role, and any limits of authority of representative 1.2 Explain to client organisation’s licensees, principals, services and capacity, including any relationship to other financial services 1.3 Explain fees and charges to client and confirm client’s understanding of these before proceeding with delivery of service 1.4 Identify clients with special needs and take appropriate action or make referral 1.5 Explain procedures for internal and external complaints handling and resolution to client |
2. Obtain relevant information on client’s existing financial situation | 2.1 Obtain and confirm facts and information relevant to client’s particular service request 2.2 Identify client expectations, requirements and objectives, and encourage client to disclose relevant information to determine client’s personal financial situation and any special needs 2.3 Obtain relevant information on investments and assets held by client, and client’s current income, expenditure and liabilities situation 2.4 Develop summary analysis of client’s financial position based on extent of client disclosure and requirements 2.5 Accurately and consistently identify risk and fraud indicators, and check all information for consistency and potential conflict |
3. Determine client expectations and requirements with respect to financial planning service offered by representative | 3.1 Encourage client to express and clarify expectations from financial planning process, and identify and promptly and appropriately respond to any concerns 3.2 Establish client’s income and investment needs, preferences and priorities 3.3 Explore risk issues and tolerance comprehensively and ethically with client 3.4 Determine that service being sought is within capability and authority of authorised representative 3.5 Refer to another internal representative if service required by client is beyond scope of representative 3.6 Seek specialist advice where necessary or refer client to appropriate personnel or organisation where required services are not available or cannot be provided by the practice |
4. Prepare and update necessary documentation where required | 4.1 Document and check with client all relevant client facts, information and financial and personal histories, and manage confidentially in accordance with company policy and guidelines, and relevant legislation and industry codes of practice 4.2 Create or update client records when necessary 4.3 File client documentation, information and histories in format and location that is readily accessible |
Evidence of Performance
Evidence of the ability to:
clearly inform clients of the financial planning process and services
obtain all relevant information on clients’ existing financial situation
determine client expectations and requirements with respect to the financial planning service offered by the representative
comply with relevant legislation and regulations, and organisational operating policy and procedures
accurately record information and make summary analysis.
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:
discuss appropriate financial industry sales and marketing techniques
explain the protocols to be complied with in dealing with clients with special needs
outline the key issues relating to:
the current economic climate and outlook
local and international financial markets and investments
explain financial product service terms and conditions
explain indicative fees and charges
explain the interactions between different providers of the financial planning service and their accountabilities
describe authorities and assistance able to be offered by other advisers and organisations
discern between and describe what different providers can and cannot do within the financial planning service required by the client
outline the steps in a referral process to other advisers or organisations
describe the key stages in internal and external complaint handling processes
outline the steps and processes involved in the preparation of financial plans
describe the key features of relevant organisational policy, procedures and requirements
identify risk and fraud indicators.
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 | 1.4, 2.1, 2.3, 2.5, 4.1 | Researches and evaluates information and products from a variety of sources to ensure appropriateness to client needs, currency and accuracy |
Writing | 1.1-1.5, 2.1-2.4, 3.1, 3.3, 3.5, 3.6, 4.1-4.3 | Completes formal and informal texts, accurately following organisational procedures and protocols Uses clear language and appropriate terminology, with correct spelling, to convey and clarify information to a range of stakeholders |
Oral Communication | 1.1-1.5, 2.1-2.3, 3.1-3.3, 3.5, 3.6 | Participates in verbal exchanges using language and concepts appropriate to the audience and purpose Uses targeted questioning and active listening skills to elicit and clarify information |
Numeracy | 1.3, 2.1-2.3, 3.2, 4.1-4.3 | Performs mathematical calculations to determine fees, reconcile amounts and compare financial information Analyses, records and stores complex financial data and information |
Navigate the world of work | 1.5, 3.3, 4.1 | Understands responsibilities of own role and the roles of others, including ethical behaviour and compliance with legislative and organisational requirements Ensures knowledge of legislative requirements is kept up to date to provide accurate information |
Interact with others | 1.1-1.5, 2.1, 2.3, 3.1, 3.3, 3.5, 3.6, 4.1 | Selects and uses appropriate conventions and protocols to gain and provide relevant information Adapts personal communication style to build rapport and show respect for the opinions, values and particular needs of others |
Get the work done | 1.1, 1.5, 2.1-2.5, 3.1-3.6, 4.1-4.3 | Plans, organises and sequences tasks to meet legislative and organisational requirements, and ethical standards Systematically gathers, analyses and evaluates information to decide on appropriate products or advice, seeking advice from others as required Uses problem-solving techniques to identify and analyse possible risks to decide on suitable actions, seeking advice from others as required Uses the main features and functions of digital tools to complete work tasks and access information |
Sectors
Financial planning