This unit has application to job roles such as trainee financial planners, financial planners and para-planners.

ELEMENT

PERFORMANCE CRITERIA

1. Inform client of the financial planning process and services

1.1. Financial planning process and role and any limits of authority of the representative are explained to the client

1.2. The licensees and principals of the organisation and services and capacity of the organisation, including any relationship to other financial services are explained to the client

1.3. Fees and charges are explained to the client and the client's understanding of these confirmed before proceeding with delivery of service

1.4. Clients with special needs are identified and appropriate action taken or referral made

1.5. Procedures for internal and external complaints handling and resolution are explained to the client

2. Obtain relevant information on client's existing financial situation

2.1. Facts and information relevant to the client's particular service request are obtained and confirmed

2.2. Client's expectations, requirements and objectives are identified with clients encouraged to disclose relevant information to determine their personal/financial situation and any special needs

2.3. Relevant information on investments and assets held by the client and their current income, expenditure and liabilities situation are obtained

2.4. A summary analysis of client's financial position is developed based on extent of client disclosure and requirements

2.5. Risk and fraud indicators are identified accurately and consistently and all information is checked for consistency and potential conflict

3. Determine client expectations and requirements with respect to financial planning service offered by the representative

3.1. Client is encouraged to express and clarify their expectations from the financial planning process with any concerns identified and responded to promptly and appropriately

3.2. Client's income and investment needs, preferences and priorities are established

3.3. Risk issues and tolerance are explored comprehensively and ethically with the client

3.4. A determination is made that the service being sought is within the capability and authority of the authorised representative

3.5. A referral to another internal representative is made if service required by client is beyond scope of the representative

3.6. Specialist advice is sought where necessary or client is referred 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. All relevant client facts, information and financial/personal histories are documented, checked with the client and managed confidentially in accordance with company policy and guidelines and relevant legislation and industry codes of practice

4.2. Client records are created or updated when necessary

4.3. Client documentation, information and histories are filed in a format and location that is readily accessible

Required skills

well-developed communication skills to:

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

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

highly developed research skills such as:

accessing and managing information

interpreting documentation

numeracy skills to accurately analyse, record and store data in accordance with organisational requirements

well-developed literacy skills for analysing 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

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

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

Required knowledge

appropriate financial industry sales and marketing techniques

current economic climate and outlook

financial product service terms and conditions

internal and external complaint handling processes

local and international financial markets and investments

organisational policy, procedures and requirements

processes involved in the preparation of financial plans

relevant financial business principles and law

relevant legislation and codes of practice

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 legislation and regulations and organisational operating polices and guidelines

clearly inform clients of the financial planning process and services and obtain all relevant information on clients' existing financial situation

determine client expectations and requirements with respect to financial planning service offered by the representative

identify risk and fraud indicators

accurately record information and make summary analysis

recognise authorities and assistance able to be offered by other advisers and organisations and determine where a referral to another adviser or organisation is appropriate.

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 which may include formal examinations

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.

Clients may include:

agents

companies and organisations

intermediaries

members of the public

trustees.

Clients with special needs may include:

people from different cultural backgrounds

clients who may have a difficulty in understanding the financial planning advice such as:

people who are deficient in English

very young or older age groups

people with a disability

Client's expectations and requirements may include:

financial planning for a relatively small amount or for a simple financial strategy a limited or preset range of products

need-specific advice and or service

product-specific advice and or service.

Relevant information may include:

age

contingent liabilities and assets (e.g. guarantor)

current level of liquidity

current portfolio (including family holdings, any Capital Gains Tax (CGT) related details such as stocks acquired prior to 20/09/1985)

employer details

extent to which the client is geared

family structure, dependants and expectations

funds available for investment

health

home ownership

insurance and superannuation arrangements

relevant deceased estates

investment experience

level of debt

marginal tax rates

occupation

past, present and future employment prospects

personal income

previous financial history such as:

bankruptcy

refusal of credit

required flexibility

other information as identified in a 'fact find' document.

Company policy and guidelines may include:

advertising and marketing guidelines

clerical procedures

codes of practice

complaints and dispute resolution procedures

IT and administrative systems

policies and procedures in relation to client service

product or service development requirements.

Relevant legislation and codes of practice 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.

Documentation may include:

agreements

bills

brochures

contracts or policy statements

in-house publications

legal/government/professional/other documents

meeting notes

memos

official/general/other correspondence

product recommendations

prospectuses

quotations

receipts

records of telephone conversations

reference to all evidence or information considered

reports:

research

statistical

ad hoc

transaction

other

written advice

written reasons for adopting/incorporating certain information in preference to other information.

Unit sector

Financial planning

This unit contains employability skills.