ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish plan objectives and scope

1.1 Review and compare research results with client requirements and expectations, and analyse current client situation to determine opportunities and constraints

1.2 Review special features of client situation such as high asset, income or expenditure requirements, complex taxation and/or legal issues, or complex estate planning issues

1.3 Identify desired financial resource and market parameters and develop plan objectives for asset growth, income, risk, estate planning and any other objectives developed in consultation with client

1.4 Identify taxation or estate objectives and discuss with client

2. Develop strategic assumptions

2.1 Develop and test client related and economic key assumptions

2.2 Develop and test legislative, regulatory and taxation assumptions

2.3 Seek clarification from client or other financial services professionals as required and document strategic assumptions for client review

3. Develop innovative or complex financial strategy

3.1 Develop initial options based on strategic assumptions and client specifications

3.2 Analyse, model and prioritise strategic options and reject inappropriate strategic options

3.3 Develop supporting arguments for each strategic option and include in draft overall strategy

3.4 Integrate strategy, where required, into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers for financial plan to achieve maximum synergy and benefit for client

3.5 Review strategy for best practice compliance and risk management

3.6 Include fee and charge analysis for strategy options

3.7 Maintain best practice ethical behaviour, including full disclosure of any potential conflicts of interest and areas where advice should be sought from other professionals

4. Review and settle draft strategy and options with client

4.1 Select strategic options for review with client and suitable mode of presentation

4.2 Fully review each strategic option with client, including positives, negatives and risks for each option

4.3 Ensure that implication of each option, including regulatory and legal implications for client’s situation, needs and goals, is explained to client and understood

4.4 Ensure that client understands where additional professional advice is needed

4.5 Establish broad agreement on strategies with client and resolve any concerns and issues raised by client

5. Develop preliminary financial plan for client

5.1 Conduct full investigation of products and options, including non-standard and/or innovative products, and select products and options to meet agreed strategy

5.2 Identify complex or innovative products and develop or obtain explanatory material

5.3 Incorporate requirements for cash flow, liquidity, capital preservation or estate planning

5.4 Develop recommendations for financial asset allocation structure including, where required, provision for equities, trusts, partnerships, allocated pensions and superannuation

5.5 Develop recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to client strategy, and provide referral advice to accountants or lawyers as appropriate

5.6 Develop recommendations on risk management strategies and products, and incorporate into plan

5.7 Incorporate description of anticipated fees and charges into plan

5.8 Incorporate information on internal and external complaints resolution procedures into preliminary plan

5.9 Document preliminary financial plan according to organisational guidelines and procedures

6. Ensure compliance of financial plan with regulatory and organisational requirements

6.1 Check preliminary financial plan to ensure that role of representative or adviser is properly documented

6.2 Check preliminary financial plan to ensure compliance with relevant Acts, legislation and regulatory guidelines

6.3 Assess preliminary financial plan for its ability to successfully achieve stated objectives

6.4 Check preliminary financial plan to ensure that it complies with ethical and regulatory requirements

7. Produce client financial plan

7.1 Produce financial plan in accordance with organisational presentation requirements

7.2 Attach supporting organisation and product explanatory documentation, and regulatory and complaints information where required

Skill

Performance Criteria

Description

Learning

1.1, 3.5, 3.7, 5.1

Monitors own performance against best practice criteria

Actively undertakes research to develop own knowledge and maintain currency of information

Reading

1.1-1.4, 5.1, 5.2, 6.1-6.4

Researches and manages information and products to determine appropriateness to client needs, currency and accuracy

Consolidates and evaluates information from a range of sources to form a holistic perspective of complex situations and identify implications

Writing

1.3, 1.4, 2.3, 3.1-3.4, 3.6, 4.1, 4.2, 4.4, 5.2-5.9, 6.1, 6.2, 7.1

Synthesises and presents comprehensive financial and textual information using formats, language and concepts appropriate for the audience and purpose

Oral Communication

1.3, 1.4, 2.3, 4.1-4.4

Clearly and effectively presents detailed and comprehensive information using language, tone and pace appropriate to the audience and purpose

Participates in verbal exchanges using active listening and questioning to explain and ensure understanding of complex information

Numeracy

1.3, 1.4, 2.1-2.3, 3.1, 3.2, 3.6, 5.2-5.5, 5.7

Performs calculations and uses analytical techniques to determine trends and compare complex financial information

Accurately analyses, records and stores data in accordance with organisational requirements

Navigate the world of work

3.7, 4.3, 4.4, 6.2, 6.4

Takes responsibility for ensuring that strategies comply with organisational policy and procedures, legislative and ethical requirements and client objectives

Ensures knowledge of legislative requirements is kept up to date to provide accurate information

Interact with others

1.3, 1.4, 2.3, 4.1, 4.3-4.5, 5.5

Selects and uses appropriate conventions and protocols to gain and provide information

Get the work done

1.1-1.4, 2.1, 2.2, 3.2-3.6, 4.1-4.5, 5.1-5.9, 6.1-6.4, 7.1, 7.2

Plans a range of routine and non-routine work tasks according to defined requirements, accepting defined goals and aiming to achieve them efficiently

Uses systematic analytical problem-solving processes in complex routine and non-routine situations, gathering information and identifying and evaluating options against agreed criteria

Systematically evaluates complex information to make informed decisions

Uses the main features and functions of digital tools to complete work tasks