Course Title: Provide advice in financial planning

Part B: Course Detail

Teaching Period: Term1 2017

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 attached to this document (Part B) but please note that it is subject to change.

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
  • Client Files
  • 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- ​ Portfolio Mini Problem Solving Exercises/Activities (Week 5)

For this Assessment Task you are required to demonstrate your knowledge by completing a series of ten theory and problem solving activities from weeks 1 to 5. You will be required to submit each activity as specified in the weekly schedule.

The purpose of the activities is to enhance your understanding and ability to apply the knowledge to practice in the following areas:

  1. Informing client about procedures for  complaints handling
  2. Use arrange of communication skills to gather clients, personal, financial and business skills
  3. Outline the concept of a financial product
  4. Outline the types of financial investment products
  5. Provide an overview of the operation of financial markets and roles played by intermediaries.
  6. Provide an overview of the interrelationships with Financial Markets & interrelationships between industry sectors
  7. Discuss the various disclosure and compliance in relation to Corps Act, ASIC Act, Privacy requirments, Financial Services Reform Act (FSRA), Competition & Consumer Act
  8. Relationship between ethics and regulatory requirements.

Task 2 - Workplace Simulated Project​ (Week 12)

For the first part of the project you will assume the role of a para-planner at the Swanston Bank Ltd and you will prepare a financial plan that includes a cash flow, asset and liabilities based on most recent tax rates. You will be required to calculate the lump sums the client will require at retirement and forecast their approximate superannuation balances for the next five years. The forecast will be based on the client’s current investment balances and contributions. You will be able to determine the duration that the client needs before they can expect to receive a comfortable amount to retire as in accordance with ASFA standards. The financial plan that you will prepare must include strategies to increase the client’s investment balances at retirement.

In the second part of the assessment you will be required to interview the client. You will need to continue building a good rapport with the client and present the financial plan that you drafted to them. You will need to ensure that the client understands their financial status and whether the client will be able to apply for the age pension at retirement by applying the eligibility criteria on the website. The main aim of the second part is for you is to be able to explain all the relevant terms in the financial plan, answer the questions that the client may have and to negotiate the contents of the financial plan and ask for the authority to proceed with implementation of financial plan.

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 concepts of superannuation, your communication skills in presenting that knowledge and your problem-solving skills in answering the questions posed in a live interview with the simulated client.

A number of Learning Audit Dates have been scheduled and you are expected to progress as per the set targets throughout their studies. 

Task 3 – Supervised Assessment (Week 14)

For this Assessment Task you are required to demonstrate your knowledge of superannuation 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 covered throughout the semester. This assessment will take place during your normal scheduled class time.

You must successfully complete all assessment tasks to achieve competency.

Grading will be applied once you have been deemed competent for each competency.


   


Assessment Matrix

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