ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes of a unit of competency

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Collect information to prepare a personal financial plan.

1.1. Identify the benefits of personal financial planning.

1.2. Identify providers of financial advice.

1.3. Analyse and compare the services provided by key providers.

1.4. Identify and assess sources of information on major investment options.

1.5. Identify and access sources of information on the different forms of insurance available.

1.6. Identify and access sources of information on the different forms of superannuation available.

1.7. Check and clarify any conflicting information with relevant sources.

2. Prepare a personal financial plan.

2.1. Identify own personal financial planning needs and aims in consultation with appropriate personnel.

2.2. Select a financial adviser according to identified needs and criteria.

2.3. Select appropriate investment options according to identified needs and criteria.

2.4. Prepare the financial plan in consultation with a financial advisor.

2.5. Adjust the financial plan in response to changing financial circumstances in consultation with financial advisor.

Required skills

problem-solving skills to:

compare and evaluate financial information

identify and evaluate investment options available and match these to own needs

literacy and numeracy skills to access, read and interpret literature from financial institutions

communication skills to negotiate the best investment options with a financial adviser

technology skills to access financial information online.

Required knowledge

contractual obligations to assess projected future income for inclusion in personal financial plan

criteria for selecting financial advisors and appropriate investment options

relevant legislation such as taxation and superannuation to enable legally compliant personal financial planning

benefits of financial planning to enable effective management of personal finances

sources of information on personal financial planning

key financial services and providers to access support for financial planning.

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 following is essential:

develops knowledge of financial services available, confirms accuracy and currency of information and assesses own personal financial needs in order to develop a personal financial plan that meets financial objectives of financial security

seeks professional financial advice to evaluate and select financial options.

Context of and specific resources for assessment

Assessment must ensure development of a personal financial plan which is of sufficient breadth to demonstrate competency and consistency of performance.

Assessment must also ensure access to:

financial information on investment, superannuation and insurance

financial advisors

criteria for selecting investment options and financial advisors

sample financial plans.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

observation of dealing with contingencies such as addressing changes in financial situation

oral or written questioning to assess knowledge of financial services available

portfolio containing evidence of financial information collected, analysed and evaluated in relation to own needs and evidence of financial plan developed.

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

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.

Benefits may include:

risk management

future planning

retirement

variation in income levels

career changes in or out of sport

savings plan

retirement planning.

Personal financial planning may include:

investment

insurance

superannuation.

Providers may include:

bank

financial planners

accountants

investment advisers

security brokers

stock brokers

solicitors

insurance companies.

Services may include:

investment options

insurance options

financial management.

Major investment options may include:

short term

long term

shares

securities

bonds

property

banks

trusts.

Forms of insurance may include:

life

accident

property

public liability

motor vehicle

trauma

travel

income protection.

Forms of superannuation may include:

roll over

lump sum payment

personal and employment contributions.

Appropriate personnel may include:

coaches

managers.

Criteria may include:

credibility

empathy for sport

experience

cost.