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Evidence Guide: FNSASICZ503 - Provide advice in financial planning

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSASICZ503 - Provide advice in financial planning

What evidence can you provide to prove your understanding of each of the following citeria?

Establish relationship with client

  1. Establish client’s knowledge about financial products and services by using range of communication and interpersonal skills
  2. Respond to enquiries about financial planning products and services by explaining range of products and services available and their relevant fee and charging methodology
  3. 1.3 Inform client about role of adviser and licensee or principal responsible for adviser's conduct
  4. Inform client about procedures for handling complaints and circumstances in which they should be engaged
Establish client’s knowledge about financial products and services by using range of communication and interpersonal skills

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond to enquiries about financial planning products and services by explaining range of products and services available and their relevant fee and charging methodology

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

1.3 Inform client about role of adviser and licensee or principal responsible for adviser's conduct

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Inform client about procedures for handling complaints and circumstances in which they should be engaged

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client’s objectives, needs and financial situation

  1. Use range of communication and interpersonal skills to gather client’s personal, financial and business details
  2. Ask about client’s short-term, medium-term and long-term objectives and goals relating to product
  3. Identify product risk profile of client
  4. Obtain understanding of client’s attitudes and expectations of cash flow and relevant taxation obligations
Use range of communication and interpersonal skills to gather client’s personal, financial and business details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ask about client’s short-term, medium-term and long-term objectives and goals relating to product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain understanding of client’s attitudes and expectations of cash flow and relevant taxation obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse client’s objectives, needs, financial situation and risk profile

  1. Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs
  2. Consult client throughout analysis and seek further clarification where necessary
  3. Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required
  4. Conduct product risk profile assessment and obtain agreement from client about assessment
  5. Apply ASIC generic and specialist knowledge in analysing client needs and risk profile
Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult client throughout analysis and seek further clarification where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Conduct product risk profile assessment and obtain agreement from client about assessment

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply ASIC generic and specialist knowledge in analysing client needs and risk profile

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop appropriate strategies and solutions

  1. Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs
  2. Undertake relevant research, analysis and product modelling as required
  3. Draft and present appropriate solution (plan, policy or transaction) to client
Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake relevant research, analysis and product modelling as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Draft and present appropriate solution (plan, policy or transaction) to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Present appropriate strategies and solutions to client

  1. Demonstrate appropriate product knowledge when presenting product or service
  2. Explain and discuss proposed transaction with client in clear and unambiguous way
  3. Reinforce all relevant details, terms and conditions of product and service with client
  4. Disclose all impacts and possible risks of solution in clear and concise manner
  5. Provide written supporting documentation and guide client through key aspects of documentation
Demonstrate appropriate product knowledge when presenting product or service

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain and discuss proposed transaction with client in clear and unambiguous way

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reinforce all relevant details, terms and conditions of product and service with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Disclose all impacts and possible risks of solution in clear and concise manner

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide written supporting documentation and guide client through key aspects of documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate financial plan, policy and/or transaction with client

  1. Clarify and discuss any concerns and/or issues client has regarding proposed plan, policy and/or transaction
  2. Seek confirmation that client understands proposed plan, policy and/or transaction
Clarify and discuss any concerns and/or issues client has regarding proposed plan, policy and/or transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek confirmation that client understands proposed plan, policy and/or transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Coordinate implementation of agreed plan, policy and/or transaction

  1. Obtain client’s formal agreement to proposed plan, policy and/or transaction
  2. Clearly explain and confirm associated fee and cost structures and confirm client understands these details
  3. Clearly explain and confirm timeframes for execution and processing, and confirm client understands these details
Obtain client’s formal agreement to proposed plan, policy and/or transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Clearly explain and confirm associated fee and cost structures and confirm client understands these details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Clearly explain and confirm timeframes for execution and processing, and confirm client understands these details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete and maintain necessary documentation

  1. Ensure all statutory, transactional and proposal documents are completed and signed off by client
  2. Ensure that copies of signed agreement and other relevant documentation are exchanged
Ensure all statutory, transactional and proposal documents are completed and signed off by client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure that copies of signed agreement and other relevant documentation are exchanged

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing service where requested by client

  1. Ensure that type and form of ongoing service, including reporting on performance and review of plan, policy or transaction, is agreed with client
  2. Clearly explain all fees and costs for ongoing and specifically defined services, and check that client understands these details
  3. Provide ongoing service as required
Ensure that type and form of ongoing service, including reporting on performance and review of plan, policy or transaction, is agreed with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Clearly explain all fees and costs for ongoing and specifically defined services, and check that client understands these details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing service as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client’s objectives, needs and financial situation

  1. Use range of communication and interpersonal skills to gather client’s personal, financial and business details
  2. Ask about client’s short-term, medium-term and long-term objectives and goals relating to product
  3. Identify product risk profile of client
  4. Obtain understanding of client’s attitudes and expectations of cash flow and relevant taxation obligations
Use range of communication and interpersonal skills to gather client’s personal, financial and business details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ask about client’s short-term, medium-term and long-term objectives and goals relating to product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain understanding of client’s attitudes and expectations of cash flow and relevant taxation obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse client’s objectives, needs, financial situation and risk profile

  1. Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs
  2. Consult client throughout analysis and seek further clarification where necessary
  3. Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required
  4. Conduct product risk profile assessment and obtain agreement from client about assessment
  5. Apply ASIC generic and specialist knowledge in analysing client needs and risk profile
Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult client throughout analysis and seek further clarification where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Conduct product risk profile assessment and obtain agreement from client about assessment

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply ASIC generic and specialist knowledge in analysing client needs and risk profile

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Establish relationship with client

1.1 Establish client’s knowledge about financial products and services by using range of communication and interpersonal skills

1.2 Respond to enquiries about financial planning products and services by explaining range of products and services available and their relevant fee and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser's conduct

1.4 Inform client about procedures for handling complaints and circumstances in which they should be engaged

2. Identify client’s objectives, needs and financial situation

2.1 Use range of communication and interpersonal skills to gather client’s personal, financial and business details

2.2 Ask about client’s short-term, medium-term and long-term objectives and goals relating to product

2.3 Identify product risk profile of client

2.4 Obtain understanding of client’s attitudes and expectations of cash flow and relevant taxation obligations

3. Analyse client’s objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis and seek further clarification where necessary

3.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required

3.4 Conduct product risk profile assessment and obtain agreement from client about assessment

3.5 Apply ASIC generic and specialist knowledge in analysing client needs and risk profile

4. Develop appropriate strategies and solutions

4.1 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

4.2 Undertake relevant research, analysis and product modelling as required

4.3 Draft and present appropriate solution (plan, policy or transaction) to client

5. Present appropriate strategies and solutions to client

5.1 Demonstrate appropriate product knowledge when presenting product or service

5.2 Explain and discuss proposed transaction with client in clear and unambiguous way

5.3 Reinforce all relevant details, terms and conditions of product and service with client

5.4 Disclose all impacts and possible risks of solution in clear and concise manner

5.5 Provide written supporting documentation and guide client through key aspects of documentation

6. Negotiate financial plan, policy and/or transaction with client

6.1 Clarify and discuss any concerns and/or issues client has regarding proposed plan, policy and/or transaction

6.2 Seek confirmation that client understands proposed plan, policy and/or transaction

7. Coordinate implementation of agreed plan, policy and/or transaction

7.1 Obtain client’s formal agreement to proposed plan, policy and/or transaction

7.2 Clearly explain and confirm associated fee and cost structures and confirm client understands these details

7.3 Clearly explain and confirm timeframes for execution and processing, and confirm client understands these details

8. Complete and maintain necessary documentation

8.1 Ensure all statutory, transactional and proposal documents are completed and signed off by client

8.2 Ensure that copies of signed agreement and other relevant documentation are exchanged

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including reporting on performance and review of plan, policy or transaction, is agreed with client

9.2 Clearly explain all fees and costs for ongoing and specifically defined services, and check that client understands these details

9.3 Provide ongoing service as required

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Establish relationship with client

1.1 Establish client’s knowledge about financial products and services by using range of communication and interpersonal skills

1.2 Respond to enquiries about financial planning products and services by explaining range of products and services available and their relevant fee and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser's conduct

1.4 Inform client about procedures for handling complaints and circumstances in which they should be engaged

2. Identify client’s objectives, needs and financial situation

2.1 Use range of communication and interpersonal skills to gather client’s personal, financial and business details

2.2 Ask about client’s short-term, medium-term and long-term objectives and goals relating to product

2.3 Identify product risk profile of client

2.4 Obtain understanding of client’s attitudes and expectations of cash flow and relevant taxation obligations

3. Analyse client’s objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis and seek further clarification where necessary

3.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required

3.4 Conduct product risk profile assessment and obtain agreement from client about assessment

3.5 Apply ASIC generic and specialist knowledge in analysing client needs and risk profile

4. Develop appropriate strategies and solutions

4.1 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

4.2 Undertake relevant research, analysis and product modelling as required

4.3 Draft and present appropriate solution (plan, policy or transaction) to client

5. Present appropriate strategies and solutions to client

5.1 Demonstrate appropriate product knowledge when presenting product or service

5.2 Explain and discuss proposed transaction with client in clear and unambiguous way

5.3 Reinforce all relevant details, terms and conditions of product and service with client

5.4 Disclose all impacts and possible risks of solution in clear and concise manner

5.5 Provide written supporting documentation and guide client through key aspects of documentation

6. Negotiate financial plan, policy and/or transaction with client

6.1 Clarify and discuss any concerns and/or issues client has regarding proposed plan, policy and/or transaction

6.2 Seek confirmation that client understands proposed plan, policy and/or transaction

7. Coordinate implementation of agreed plan, policy and/or transaction

7.1 Obtain client’s formal agreement to proposed plan, policy and/or transaction

7.2 Clearly explain and confirm associated fee and cost structures and confirm client understands these details

7.3 Clearly explain and confirm timeframes for execution and processing, and confirm client understands these details

8. Complete and maintain necessary documentation

8.1 Ensure all statutory, transactional and proposal documents are completed and signed off by client

8.2 Ensure that copies of signed agreement and other relevant documentation are exchanged

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including reporting on performance and review of plan, policy or transaction, is agreed with client

9.2 Clearly explain all fees and costs for ongoing and specifically defined services, and check that client understands these details

9.3 Provide ongoing service as required

Evidence of the ability to:

interpret and comply with industry regulations and codes of practice

analyse client’s needs, financial situation and risk profile, and prepare appropriate strategies or solutions relating to financial planning

provide accurate and ethical advice on financial planning products and services

implement the plan, policy or transaction once agreed by the client and complete documentation accurately.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must satisfy generic and specialist knowledge requirements relevant to the products and activities in which advice is given.

Generic knowledge

analyse and provide an overview of the economic environment including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

analyse and provide a detailed explanation of the operation of financial markets including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

outline financial products, including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products.

Specialist knowledge

outline theories of investment, portfolio management and management of investment and risk including:

range of financial products

types of investment products including cash, fixed interest, property, equities and managed investments

types of financial risk products including risk insurance and derivatives

investment concepts

investment strategies

identification of types of risk

client risk profile

provide an analysis of advisory functions covering:

role of financial planner

participants in the advisory services market

range of services provided

financial planning process

profile and financial information of the client

appropriateness of a risk assessment

discuss the legal environment including disclosure and compliance covering:

role of the representative or adviser

relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act

relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser's recommendation

relevant industry standards and codes of conduct

regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements

complaints resolution procedures (external and internal)

provide an overview of the Australian taxation and social security systems covering:

relevant taxation laws and regulations

effects of taxation on particular financial products

effects of taxation on financial strategies of individuals and entities

explain theories of estate planning including allowable investments, enduring and non-enduring powers of attorney, and share purchase agreements

outline management and investment strategies relevant to estate planning

explain taxation laws and regulations relevant to estate planning.