Course Title: Provide advice in financial planning
Part B: Course Detail
Teaching Period: Term2 2016
Course Code: BAFI5211C
Course Title: Provide advice in financial planning
School: 650T Vocational Business Education
Campus: City Campus
Program: C5343 - Diploma of Financial Planning
Course Contact: Callie Harvey
Course Contact Phone: +61 3 9925 5772
Course Contact Email: callie.harvey@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
Nominal Hours: 50
Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
Pre-requisites and Co-requisites
None
Course Description
This unit describes the skills and knowledge required to analyse client needs and provide advice ethically and professionally in financial planning, in compliance with industry regulations and codes of practice. It addresses the training requirements of current Australian Securities and Investments Commission (ASIC) and Australian financial services (AFS) licensing at Tier 1 level.
It applies to individuals who use well-developed interpersonal skills and excellent communication and self-management skills to perform a specialist advisory role in financial planning. Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or ASIC for specific guidance on requirements.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
FNSASICZ503 Provide advice in financial planning |
Element: |
1. Establish relationship with client |
Performance Criteria: |
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 |
Element: |
2. Identify client’s objectives, needs and financial situation |
Performance Criteria: |
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 |
Element: |
3. Analyse client’s objectives, needs, financial situation and risk profile |
Performance Criteria: |
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 |
Element: |
4. Develop appropriate strategies and solutions |
Performance Criteria: |
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 |
Element: |
5. Present appropriate strategies and solutions to client |
Performance Criteria: |
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 |
Element: |
6. Negotiate financial plan, policy and/or transaction with client |
Performance Criteria: |
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 |
Element: |
7. Coordinate implementation of agreed plan, policy and/or transaction |
Performance Criteria: |
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 |
Element: |
8. Complete and maintain necessary documentation |
Performance Criteria: |
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 |
Element: |
9. Provide ongoing service where requested by client |
Performance Criteria: |
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 |
Learning Outcomes
Details of Learning Activities
A range of learning activities are planned for this course including self-paced and collaborative classroom based activities.
The self-paced activities will be delivered thought various technology platforms and include your contribution to wikis and discussion threads, reflective journals, quizzes and interactive sessions.
The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.
We expect you to participate and contribute in all scheduled learning activities.
Teaching Schedule
Prior to training commencement a program level induction session will be conducted that comprises the following:
- Program overview and requirements
- MyRMIT/Blackboard
- Overview of assessment requirements
- Pre-Training Review including:
-
- Recognition of Prior Learning and Credit Transfers
- Assessment of current skills and knowledge
- Competency/Grading Criteria
- Plagiarism
- Appeals
- Extensions
- Feedback
- Privacy
- Submission requirements
- Resubmission policy
- Where to get support
- Student responsibilities
The Teaching Schedule for this course is as follows but please note that it is subject to change.
Week No. |
Date Week Begins |
Topic: |
Reading and Course Workbook Tasks |
1 |
4/7 |
Introduction to the course including:
Part 1: Provide Advice in Financial Planning
Topic 1: What is the Financial Planning Process? Topic 2: Six steps in the financial planning process |
Resources on Learning Hub
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Topic 1 - What is the Financial Planning Process?
Websites Getting Advice https://www.moneysmart.gov.au/investing/financial-advice Commonwealth Bank financial planning process http://www.commbank.com.au/personal/super-retirement/financial_planning_process.aspx Other Resources A guide to the financial planning process NICRI 12/10/06 Topic 2: Six steps in the financial planning process
Websites FPA Financial Planning Process Explanation http://fpa.com.au/about-financial-planning/how-it-works/ Class Activity Clearly there is a great variety of available information for the individual investor. Identify as many different types of information source as you can |
2 |
11/7 |
Topic 3: Preparation prior to commencing the process Topic 4: The first step |
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Topic 3 - Preparation prior to commencing the process
Websites www.asic.gov.au(Reasonable basis for advice rule sec. 945 of the Corporation Act, as has been interpreted principally in Practice Note 41. ASIC has provided guidance through PS175 on what they consider to be the personal circumstances) Other Resources Review the Pre interview form (PDF) Topic 4 - The first step
Websites Fact Finders Risk Profiling https://www.myrisktolerance.com/home Other Resources Review the client needs analysis document – New Age Planners (PDF) Script following data collection (PDF) |
3 |
18/7 |
Topic 5: The second and third steps
Topic 6: The fourth step |
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Topic 5 - The second and third steps Website Dollarsmart: A financial toolkit for young Australians
http://www.fsc.org.au/downloads/file/ConsumerInfoFactSheetsFile/FactSheet_Dollarsmart_toolkit.pdf Topic 6 - The fourth step Website Other Resources Master Statement of Advice document (PDF) |
4 |
25/7 |
Topic 7: The fifth step Topic 8:
The sixth step |
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Task 1- Supervised Assessment |
5 |
1/8 |
Part 2: Develop and Prepare Financial Plans Topic 1 Introduction SoA
|
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Topic 1 Introduction SoA
Websites http://www.onepath.com.au/business/financial-advice/what-to-expect.aspx |
6 |
8/8 |
Topic 2 Strategy development and solutions
|
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Topic 2 - Strategy development and solutions
Websites
Feedback for Assessment Task 1
Check – Point Assessment Task 2 |
7 |
15/8 |
Topic 3:
Statement of Advice construction Topic 4: Statement of Advice format
|
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Topic 3 - Statement of Advice construction Websites Class Activity Briefly outline what should be considered when developing a financial plan to ensure that it is a legally compliant document Topic 4 - Statement of Advice format
Websites Sample Statement of Advice http://download.asic.gov.au/media/1239911/rg90-published-20-august-2013.pdf |
8 |
22/8 |
Topic 5 Compliance
|
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4
Topic 5 - Compliance
Websites http://fpa.com.au/policy/policy-issues/fofa/ Class Activity Consider the following groups, and briefly outline the interests, and the reason for the interests, each group has in prescribing the contents and style of financial plans. Financial planning groups (Australian Financial Services Licensee) Industry/professional bodies like the Financial Planning Association of Australia (FPA) and the Association of Financial Advisers (AFA)
Check – Point Assessment Task 2 |
Mid-Semester Break 29/08/16 – 4/9/2016 | |||
9 |
5/9 |
Part 3: Present services, advice and products Topic 1 Create rapport with clients Topic 2 Client decision making
|
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters
Topic 1 - Create rapport with clients Websites https://en.wikipedia.org/wiki/Body_language Topic 2 - Client decision making
Websites https://www.vanguardinvestments.com.au/retail/jsp/home.jsp Risk Tolerance
Class Activity How would you modify a plan to ensure that it is a good selling tool? |
10 |
12/9 |
Topic 3 Presenting the Plan
Topic 4 Implementation
|
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters
Topic 3 - Presenting the Plan Websites http://www.afawebsite.com.au/services/the-advice-journey/
Class Activity What would happen if a financial planner were to prepare a plan without acknowledging that it is a sales tool?
How would it affect the plan? How would it affect the way the client receives it? Topic 4 - Implementation Websites http://www.onepath.com.au/business/financial-advice/what-to-expect.aspx https://www.capinvest.com.au/services_financialplanning_ourprocess.aspx Class Activity Why is getting the client so sign the Authority to Proceed so important? |
11 |
19/9 |
Topic 5 Ongoing service
|
Course Workbook Manage Client Relationship, Chapter 4 & 5 Financial Planning Advice, All chapters
Topic 5 - Ongoing service
Class Activity Why do assumptions have to be reviewed each year? Check – Point Assessment Task 2 |
12 |
26/9 |
Part 4: Estate Planning Topic 1 Estate planning process
Topic 2 The Will
|
Course Workbook Financial Planning, Chapter 10
Topic 1 Estate planning process
Websites http://money.ninemsn.com.au/article.aspx?id=160489 http://www.netlawman.com.au/info/estate-planning-australia.php https://www.moneysmart.gov.au/life-events-and-you/over-55s/wills-and-power-of-attorney Perkins M and Monahan R, Estate Planning: A Practical Guide for Estate and Financial Service Professionals, 4th ed, LexisNexis Butterworths, Australia, 2015
Topic 2 - The Will
Websites Assessment Task 2 – Simulated Workplace Project |
13 |
3/10 |
Topic 3 Estate planning considerations
Topic 4 Managing the estate after death
|
Course Workbook Financial Planning, Chapter 10
Topic 3 - Estate planning considerations
Websites http://www.forbes.com/2006/11/02/pf-estates-cx_mh_1102estateplanning_slide_2.html?thisSpeed=6000 http://www.aetlimited.com.au/Estatesolutions/FAQs Topic 4 - Managing the estate after death
Websites http://www.seniors.gov.au/internet/seniors/publishing.nsf/Content/Responsibilities+of+an+executor
Other Resources Perkins M and Monahan R, Estate Planning: A Practical Guide for Estate and Financial Service Professionals, 4th ed, LexisNexis Butterworths, Australia, 2015
Feedback for Assessment Task 2 |
14 |
10/10 |
Revision
|
Assessment Task 3 – Supervised Assessment |
15 |
17/10 |
Feedback and Re-assessment |
Revision Activities
Feedback for Assessment Task 3 |
16 |
24/10 |
Feedback and Re-assessment |
Feedback and Re-assessment Activities |
The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities including the self - paced activities in the workbooks.
Learning Resources
Prescribed Texts
References
Other Resources
Online learning materials can be accessed by going into the RMIT web sites Online Learning Hub.
The online learning materials listed include:
- Course outlines
- Power point Presentations
- Course Workbooks
- Supporting Reading material
- Industry relevant articles
- Activities
Overview of Assessment
In order to achieve competency in this unit, you must provide:
Performance Evidence
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
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
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.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:
- common office equipment, technology, software and consumables
- financial services product information.
You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.
Feedback
Feedback will be provided throughout the semester in class and/or online discussions. You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.
You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.
Assessment Tasks
Overview of Assessment
This course is co-delivered and co-assessed with the following competencies:
FNSFPL503 Develop and Prepare Financial Plan
FNSIAD501 Provide Appropriate Services, advice and products to clients
Critical Aspects of assessment are described above in the performance evidence for this course.
The assessments for this course have been designed to allow participants apply their learning to particular simulated work scenarios and demonstrate their competence in a variety of ways.
Task 1 – Supervised Assessment (Week 4)
For this Assessment Task you are required to demonstrate your knowledge by completing an open book in class supervised assessment comprised of a series of multiple choice questions on providing advice in financial planning.
The assessment comprises 25 multiple-choice theory style questions. The purpose of this task is to assess your understanding of the concepts and issues included in the topics from weeks 1 to 3. The duration of the assessment is one hour. This assessment will take place during your normal scheduled class time.
Task 2 –Simulated Workplace Project (Due Date: Week 12)
For this Project you will assume that you are working as a financial adviser either in your own business or as part of a larger organisation. You will be required to consolidate and draw on the skills and knowledge that you have developed in the previous clusters/courses from semester 1, of the Diploma of Financial Planning program. This should enable you to commence developing a comprehensive financial plan for a client.
The purpose of the assessment is to enable you to demonstrate a breadth of understanding across all of the course material at an independent level. It assesses the knowledge you have obtained through undertaking the topic, your communication skills in presenting that knowledge and your problem-solving skills in answering the questions posed.
The assessment will be available on Blackboard in Week 3 and your teacher will provide you with guidance. You will have the opportunity to seek advice from your teacher on a number of check points throughout the semester.
TASK 3 - Supervised Assessment (Due Date Week 14)
For this Assessment Task you are required to demonstrate your knowledge by completing an open book in class supervised assessment comprised of a series of theoretical and practical questions including: short answer and mini case studies. The purpose of this Task is to assess your understanding of the concepts and issues included in the topics from weeks 4 to 13. This assessment will take place during your normal scheduled class time.
You must successfully complete all assessment tasks to achieve competency.
Assessment Matrix
Assessment Task |
Grading |
Due Date |
Assessment Task 1 – Supervised assessment |
Grading will be applied once you have been deemed competent in the course. |
Week 4 |
Assessment Task 2 – Simulated Workplace Project |
Grading will be applied once you have been deemed competent in the course |
Week 12 |
Assessment Task 3 – Supervised assessment |
Grading will be applied once you have been deemed competent in the course |
Week 14 |
Assessment Tasks |
FNSASICZ503 Provide Advice in Financial Planning |
FNSFPL503 Develop and Prepare Financial Plan |
FNSIAD501 Provide appropriate Services |
Assessment Task 1 – Supervised assessment |
X |
|
|
Assessment Task 2 – Simulated Workplace Project |
X |
X |
X |
Assessment Task 3 – Supervised assessment |
X |
X |
X |
Other Information
Submission Requirements
You should:
• Ensure that you submit assessments on or before the due date.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of each assessment task is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Callie Harvey, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.
Late Submission Procedures
You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days. <check links are still current>
More Information: http://www.rmit.edu.au/students/assessment/extension
Form to use: http://mams.rmit.edu.au/seca86tti4g4z.pdf
Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination. <check links are still current>
More Information: http://www.rmit.edu.au/browse;ID=g43abm17hc9w
Form to use: http://mams.rmit.edu.au/8a5dgcaqvaes1.pdf
Resubmissions (VET Programs):
If you are found to be unsuccessful in a Course Assessment Task you will be allowed one resubmission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.
Adjustments to Assessment
In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website: <check link is still current>
More Information: http://rmit.edu.au/browse;ID=7usdbki1fjf31
Marking Guide (Competency):
You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.
You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.
Marking Guide (Grading)
After achieving competency we then grade your performance in the unit and you will achieve one of the following grades:
Final Grades table:
CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment
Further information regarding the application of the grading criteria will be provided by your teacher.
Course Overview: Access Course Overview