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Evidence Guide: FNSFPL503 - Develop and prepare financial plan

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

 

FNSFPL503 - Develop and prepare financial plan

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

Establish plan objectives and scope

  1. Review research results and compare to client requirements and expectations
  2. Analyse current client situation to determine opportunities and constraints
  3. Identify and assess desired financial resource and market parameters
  4. Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client
Review research results and compare to client requirements and expectations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse current client situation to determine opportunities and constraints

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and assess desired financial resource and market parameters

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop strategic assumptions

  1. Develop and test client related and economic key assumptions
  2. Identify and test legislative and regulatory requirements, including taxation assumptions
  3. Seek clarification from client or other professionals as required and document strategic assumptions for client review
Develop and test client related and economic key assumptions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and test legislative and regulatory requirements, including taxation assumptions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop financial plan strategy

  1. Develop initial options based on strategic assumptions and client specifications
  2. Analyse and model strategic options and reject any inappropriate options
  3. Develop supporting arguments for each final strategic option and include in draft overall strategy
  4. Conduct any necessary client checks or consultations to verify plan strategy
Develop initial options based on strategic assumptions and client specifications

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse and model strategic options and reject any inappropriate options

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Conduct any necessary client checks or consultations to verify plan strategy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop preliminary financial plan

  1. Select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required
  2. Develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions and superannuation, and planned capital expenditure
  3. Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate
  4. Develop recommendations on risk management strategies and products, and incorporate in plan
  5. Incorporate anticipated fees and charges into preliminary plan
  6. Incorporate information on internal and external complaints and dispute resolution procedures available to client
  7. Document preliminary financial plan according to organisational guidelines and procedures
Select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions and superannuation, and planned capital expenditure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop recommendations on risk management strategies and products, and incorporate in plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Incorporate anticipated fees and charges into preliminary plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Incorporate information on internal and external complaints and dispute resolution procedures available to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document preliminary financial plan according to organisational guidelines and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure compliance of financial plan with regulatory and organisational requirements

  1. Check preliminary financial plan to ensure that role of representative or adviser is properly documented and complies with relevant Acts, regulations and regulatory guidelines
  2. Assess preliminary financial plan for its ability to successfully achieve objectives
  3. Check preliminary financial plan to ensure that it complies with ethical and regulatory requirements
Check preliminary financial plan to ensure that role of representative or adviser is properly documented and complies with relevant Acts, regulations and regulatory guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess preliminary financial plan for its ability to successfully achieve objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Produce completed plan

  1. Produce financial plan in accordance with organisational quality control requirements
  2. Attach relevant supporting documentation relating to products, regulatory considerations and organisational processes, including internal and external complaints procedures
Produce financial plan in accordance with organisational quality control requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Attach relevant supporting documentation relating to products, regulatory considerations and organisational processes, including internal and external complaints procedures

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 plan objectives and scope

1.1 Review research results and compare to client requirements and expectations

1.2 Analyse current client situation to determine opportunities and constraints

1.3 Identify and assess desired financial resource and market parameters

1.4 Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client

2. Develop strategic assumptions

2.1 Develop and test client related and economic key assumptions

2.2 Identify and test legislative and regulatory requirements, including taxation assumptions

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

3. Develop financial plan strategy

3.1 Develop initial options based on strategic assumptions and client specifications

3.2 Analyse and model strategic options and reject any inappropriate options

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

3.4 Conduct any necessary client checks or consultations to verify plan strategy

4. Develop preliminary financial plan

4.1 Select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required

4.2 Develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions and superannuation, and planned capital expenditure

4.3 Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate

4.4 Develop recommendations on risk management strategies and products, and incorporate in plan

4.5 Incorporate anticipated fees and charges into preliminary plan

4.6 Incorporate information on internal and external complaints and dispute resolution procedures available to client

4.7 Document preliminary financial plan according to organisational guidelines and procedures

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

5.1 Check preliminary financial plan to ensure that role of representative or adviser is properly documented and complies with relevant Acts, regulations and regulatory guidelines

5.2 Assess preliminary financial plan for its ability to successfully achieve objectives

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

6. Produce completed plan

6.1 Produce financial plan in accordance with organisational quality control requirements

6.2 Attach relevant supporting documentation relating to products, regulatory considerations and organisational processes, including internal and external complaints procedures

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 plan objectives and scope

1.1 Review research results and compare to client requirements and expectations

1.2 Analyse current client situation to determine opportunities and constraints

1.3 Identify and assess desired financial resource and market parameters

1.4 Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client

2. Develop strategic assumptions

2.1 Develop and test client related and economic key assumptions

2.2 Identify and test legislative and regulatory requirements, including taxation assumptions

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

3. Develop financial plan strategy

3.1 Develop initial options based on strategic assumptions and client specifications

3.2 Analyse and model strategic options and reject any inappropriate options

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

3.4 Conduct any necessary client checks or consultations to verify plan strategy

4. Develop preliminary financial plan

4.1 Select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required

4.2 Develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions and superannuation, and planned capital expenditure

4.3 Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate

4.4 Develop recommendations on risk management strategies and products, and incorporate in plan

4.5 Incorporate anticipated fees and charges into preliminary plan

4.6 Incorporate information on internal and external complaints and dispute resolution procedures available to client

4.7 Document preliminary financial plan according to organisational guidelines and procedures

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

5.1 Check preliminary financial plan to ensure that role of representative or adviser is properly documented and complies with relevant Acts, regulations and regulatory guidelines

5.2 Assess preliminary financial plan for its ability to successfully achieve objectives

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

6. Produce completed plan

6.1 Produce financial plan in accordance with organisational quality control requirements

6.2 Attach relevant supporting documentation relating to products, regulatory considerations and organisational processes, including internal and external complaints procedures

Evidence of the ability to:

analyse options and make justified recommendations to clients using use in-depth knowledge of the financial planning industry, industry regulations, codes of practice, financial products, financial markets and investment characteristics

develop a detailed financial plan that :

maximises the client’s outcomes and reaches client objectives

establishes plan objectives and scope, and develops strategic assumptions

complies with regulatory and organisational procedures

assesses impacts of taxation, social security, economic and other government policy on client investment and financial requirements.

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:

describe the key features of generic products available in the financial services industry

discuss the impact of taxation, social security, economic and other government policy on client investment and financial requirements

describe the key features of investment and savings vehicles, financial markets, asset classes and investment characteristics

identify investment risk factors and describe relationship to return expectations

discuss the principles of effective negotiation

describe the internal and external complaints and dispute resolution procedures available to clients

describe the key features of relevant industry codes of practice

outline the key ethical considerations in developing and preparing financial plans

outline the general impact of relevant:

economic, taxation and social security policy on the client’s financial planning needs

state and territory planning considerations on the client’s financial planning needs

explain the role of the financial planning adviser and financial planning practice, including compliance requirements and the disclosure of capacity

describe the key features of legislation and regulations affecting the financial services industry.