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Evidence Guide: FNSASICZ503A - 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

 

FNSASICZ503A - 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. A range of communication and interpersonal skills are used to establish the knowledge level of client
  2. Enquiries in relation to products and services are responded to by explaining the range of products and services available and their relevant fee and charging methodology
  3. Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct
  4. Familiarity with the procedures for complaints handling and the circumstances in which they should be engaged is demonstrated
A range of communication and interpersonal skills are used to establish the knowledge level of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Enquiries in relation to products and services are responded to by explaining the range of products and services available and their relevant fee and charging methodology

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Familiarity with the procedures for complaints handling and the circumstances in which they should be engaged is demonstrated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client's objectives, needs and financial situation

  1. A range of communication and interpersonal skills are used to gather the clients' personal, financial and business details
  2. Client's needs are identified by encouraging expression of their objectives and goals (short-, medium- and long-term goals as relevant to the product)
  3. Product risk profile of the client is identified
  4. Client's attitudes and expectations of cash flow and relevant taxation obligations are obtained
A range of communication and interpersonal skills are used to gather the clients' personal, financial and business details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client's needs are identified by encouraging expression of their objectives and goals (short-, medium- and long-term goals as relevant to the product)

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Product risk profile of the client is identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client's attitudes and expectations of cash flow and relevant taxation obligations are obtained

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

  1. An assessment of client needs is undertaken, utilising all information gathered and taking into account client's product expectations and specific needs
  2. Client is consulted throughout the analysis for further clarification where necessary
  3. The need for specialist advice is analysed and/or client is referred to appropriate adviser for higher level/specialist advice if required
  4. Product risk profile of the client is assessed and agreed
  5. Understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered, as detailed in the evidence guide, is demonstrated
An assessment of client needs is undertaken, utilising all information gathered and taking into account client's product expectations and specific needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client is consulted throughout the analysis for further clarification where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The need for specialist advice is analysed and/or client is referred to appropriate adviser for higher level/specialist advice if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Product risk profile of the client is assessed and agreed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered, as detailed in the evidence guide, is demonstrated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop appropriate strategies and solutions

  1. An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of clients' needs
  2. Relevant research, analysis and product modelling is conducted
  3. Appropriate solution (plan, policy or transaction) is drafted for presentation to client
An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of clients' needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant research, analysis and product modelling is conducted

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate solution (plan, policy or transaction) is drafted for presentation to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Present appropriate strategies and solutions to client

  1. Product knowledge appropriate for the service or product offered is demonstrated when presenting the product
  2. The proposed transaction is explained and discussed with the client in a clear and unambiguous way
  3. Relevant details, terms and conditions of product/service are reinforced to client
  4. Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client
  5. Client is provided with written supporting documentation and guided through the key aspects of the documentation
Product knowledge appropriate for the service or product offered is demonstrated when presenting the product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The proposed transaction is explained and discussed with the client in a clear and unambiguous way

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant details, terms and conditions of product/service are reinforced to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client is provided with written supporting documentation and guided through the key aspects of the documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate financial plan/policy/transaction with client

  1. Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified
  2. Confirmation is sought from client that they understand the proposed plan/policy/transaction
Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Confirmation is sought from client that they understand the proposed plan/policy/transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Coordinate implementation of agreed plan/policy/ transaction

  1. The clients' formal agreement to the proposed plan/policy/transaction is gained
  2. Associated fee and cost structures are clearly explained and confirmation of understanding gained from the client
  3. Timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client
The clients' formal agreement to the proposed plan/policy/transaction is gained

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Associated fee and cost structures are clearly explained and confirmation of understanding gained from the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete and maintain necessary documentation

  1. Proposal and all other statutory and transactional documents are completed and signed off by the client
  2. Copies of appropriate documentation and the signed agreement are exchanged
Proposal and all other statutory and transactional documents are completed and signed off by the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Copies of appropriate documentation and the signed agreement are exchanged

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing service where requested by client

  1. Type and form of ongoing service; including reporting on performance and review of plan/policy/transaction is agreed with the client
  2. Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client
  3. Ongoing service is provided as required
Type and form of ongoing service; including reporting on performance and review of plan/policy/transaction is agreed with the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ongoing service is provided as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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:

apply knowledge of industry regulations and codes of practice, financial products and services, financial markets and characteristics, roles of other specialist providers and licensees, as well as the impacts of taxation on the clients financial requirements for the specific products offered.

NB for insurance products, competency in this unit is subject to the staff members' approval/authority to accept the transfer of risk.

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

access to financial services product information.

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

observing processes and procedures in workplaces or role plays

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Required Skills and Knowledge

Required skills

communication skills to:

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

negotiate financial service transactions with clients

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

literacy skills to:

read and interpret documentation from a variety of sources

analyse information and products to ensure appropriateness to client needs, currency and accuracy

complete documentation accurately

research and analysis skills for accessing, interpreting and managing complex information

numeracy and IT skills to:

interpret financial information and calculate client costs, risks and returns

access and use appropriate software such as spreadsheets and databases

use internet information

interpersonal skills to establish rapport with clients and to liaise with other team members

self-management skills for complying with ethical, legal and procedural requirements

learning skills to maintain knowledge of products and services and any changes to compliance legislation and requirements

judgement skills for forming suitable and ethical recommendations in advising situations

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

Required knowledge

Generic knowledge requirements

the economic environment, the characteristics and impact of economic and business cycles, including:

interest rates

exchange rates

inflation

government monetary and fiscal policies

the operation of financial markets, the roles played by intermediaries and issuers, structure and inter-relationships within the financial markets, and inter-relationship between industry sectors

characteristics of financial products, including:

the concept of a financial product

general definition

specific inclusions and exclusions

types of financial investment products

types of financial risk products

taxation issues in relation to the products and markets in which they operate

advisory functions including:

the role of the representative/adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

the legal environment and disclosure and compliance, the role of the representative/adviser, relevant legal principles such as:

Corporations Act

Financial Services Reform Act (FSRA)

Trade Practices Act

relevant industry codes of practice and conduct

complaints resolution procedures (internal and external)

regulator's guidelines including the requirements of ASIC

Specialist knowledge requirements

Theories of investment, portfolio management and management of investment and risk:

range of financial products

types of investment products such as:

cash

fixed interest

property

equities

managed investments

types of financial risk products such as:

risk insurance

derivatives

investment concepts

investment strategies

identification of types of risk

client risk profile

Advisory functions:

the role of financial planner

participants in the advisory services market

range of services provided

the financial planning process

Legal environment - disclosure and compliance:

the role of the representative/adviser

relevant legal principles (e.g. Corporations Act, ASIC Act, Privacy Amendment (Private Sector) Act)

the relationship between ethics and regulatory requirements such as:

good faith

utmost good faith

full disclosure of remuneration/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's requirements in this policy

complaints resolution procedures (external and, if relevant, internal)

Taxation:

the Australian taxation and social security systems

relevant taxation laws and regulations

effects of taxation on particular financial products

effects of taxation on financial strategies of individuals and entities

Estate planning:

theory of estate planning such as:

allowable investments

enduring and non-enduring powers of attorney

share purchase agreements

management and investment strategies

relevant taxation laws and regulations

Range Statement

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.

Adviser may include:

all natural persons who provide financial product advice to retail clients

any representative of a licensee

employee or owner.

Clients' personal, financial and business details

may include:

details of liabilities and potential liabilities of the client

details of the client's needs and objectives for:

income

security

liquidity

the time period the client is planning for

individual investment preferences and aversion or tolerance to risk

other client details such as:

employment security

likely events and their impact on the client

age

other products they have.

Risk assessment may include:

access restrictions on product

borrowing risk/gearing

economic

market and sector risks (economic cycle, fixed interest, property, stock market)

risk factors and return expectations

specific product risk

volatility of income and capital.

Client attitudes and expectations may include:

personal involvement:

active

passive

risk profile:

conservative

speculator

moderate

their beliefs about performance

expectations of fluctuations in income or capital

being a long-term or short-term investor

need for security.

Client's needs, objectives and financial situation may include:

business needs

debt position

expectations of access to product

expectations of income from this product

expectations of lifecycle and length of product

family income

security.

Documentation may include:

computer and manual applications

disclaimers

disclosures

product application forms

written advice.