Application
This unit describes the skills and knowledge required to determine the financial requirements and expectations of clients in financial planning. It involves informing required stakeholders of the financial planning process and service, obtaining required information on the client’s financial situation and expectations, and preparing and updating necessary documentation.
The unit applies to those who manage relationships and apply systematic approaches using highly specialised knowledge to problem solve and develop customised solutions. This unit requires in-depth financial knowledge. Client information may be provided by authorised representatives, including financial advisers, shareholders, financial organisations, stockbrokers, trustees, agents and intermediaries.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.
Elements and Performance Criteria
1. Identify client’s financial needs and expectations | 1.1 Identify and document client’s expectations, requirements, priorities and objectives 1.2 Identify financial planning process, roles, licensees, principals, services and capacity of organisation to meet client needs 1.3 Detail fees and charges to authorised representative and confirm understanding 1.4 Identify and report client’s relationship with other financial services to authorised representative 1.5 Identify client special needs and take required action, making referral to specialists where required 1.6 Explain procedures for internal and external complaints handling and resolution to authorised representative |
2. Establish client’s financial situation | 2.1 Obtain and assess information on client’s financial situation 2.2 Document findings from assessment of client’s financial situation 2.3 Obtain and check with authorised representative relevant facts and information and manage confidentially according to organisational policies and procedures, legislative requirements and industry codes of practice 2.4 Develop summary analysis of client’s financial position |
3. Identify and gather information on client taxation and estate issues | 3.1 Identify taxation and estate issues affecting client’s financial planning needs, and discuss implications with authorised representative 3.2 Establish and document client’s expectations, requirements, priorities and objectives for identified issues 3.3 Develop and document summary analysis of client’s taxation and estate financial position according to legislative requirements and organisational policies and procedures |
4. Establish final client position and risks | 4.1 Combine information and generate comprehensive view of client’s financial position 4.2 Identify interdependencies and implications of situation, and obtain further information where required 4.3 Develop initial summary of client’s financial position and discuss client expectations, priorities, and requirements 4.4 Review summary with authorised representative against comprehensive position 4.5 Discuss risk issues and tolerances with required stakeholders and assess unusual risks and requirements 4.6 Communicate risks and consequent impact on financial planning services to authorised representative according to organisational policies and procedures and relevant legislation |
Evidence of Performance
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
determine client requirements and expectations for financial planning for at least three different clients.
In the course of the above, the candidate must:
comply with relevant industry codes of practice, legislation and regulations, and organisational policies and procedures
offer thorough and ongoing assistance with enquiries and requests for service
communicate features and benefits of available products and services.
Evidence of Knowledge
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
legislative requirements relating to financial planning
organisational policies, procedures and requirements relating to financial planning, including:
client privacy and confidentiality
establishing client’s investment needs and preferences
complaints handling processes and procedures
business principles and law relating to financial planning
economic climate and outlook and impact on financial planning
local and international financial market and investment information included in financial plans
key features of client’s financial situation impacting on financial planning, including:
personal, family and business matters
family financial histories
key features of family structures and property structures and associated legal implications
taxation and property structures and their financial implications
estate planning issues
indications and implications of risk and fraud relating to client’s financial position
financial risk and reward principles
financial products:
features and benefits
service terms and conditions
sales and marketing techniques relevant to the financial services industry.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
organisational equipment, technology and software.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Learning | Maintains accurate and current knowledge of legislative requirements relevant to role |
Numeracy | Performs calculations to analyse and compare financial information to achieve required outcomes |
Oral communication | Participates in verbal exchanges using active listening and questioning techniques to convey and clarify information relevant to audience and purpose Uses relevant pace, tone and gestures to provide information and encourage feedback and engagement with others |
Reading | Analyses and reviews complex information from a range of sources to identify details, make judgements and determine requirements |
Writing | Develops material for a specific audience using clear and detailed language to convey explicit information, requirements and recommendations Uses relevant formats and structures to report and present information logically |
Planning and organising | Takes responsibility for planning, sequencing and prioritising complex tasks to achieve client requirements according to legislative and organisational requirements |
Problem solving | Uses systematic, analytical problem-solving processes in complex situations by gathering information, identifying issues and generating possible solutions Systematically evaluates complex information to make informed decisions |
Self-management | Takes responsibility for carrying out own role ethically and according to legislative and organisational requirements |
Teamwork | Uses collaboration techniques to encourage review and resolution of discussed matters Adapts personal communication style to show respect for the opinions, values and needs of others |
Technology | Uses the main features and functions of digital tools to complete work tasks |
Sectors
Financial planning