Course Title: Develop and prepare financial plan

Part B: Course Detail

Teaching Period: Term2 2016

Course Code: BAFI5214C

Course Title: Develop and prepare financial plan

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: 60

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 develop and prepare a financial plan that meets the client’s needs. It encompasses establishing plan objectives and scope, and developing strategic assumptions, strategies and a preliminary financial plan compliant with regulatory and organisational requirements.

It applies to individuals who, within their level of authority, manage relationships, apply systematic approaches and use specialised knowledge to recommend customised solutions for a diverse range of clients. 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 the relevant regulator for specific guidance on requirements.                                   


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSFPL503 Develop and prepare financial plan

Element:

1. Establish plan objectives and scope

Performance Criteria:

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

Element:

2. Develop strategic assumptions

Performance Criteria:

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

Element:

3. Develop financial plan strategy

Performance Criteria:

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

Element:

4. Develop preliminary financial plan

Performance Criteria:

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

Element:

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

Performance Criteria:

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

Element:

6. Produce completed plan

Performance Criteria:

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


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:

  • Course requirements and support documents/resources
  • Course Blackboard access
  • Accuracy of enrolment
  • Assessment requirements/Cover Sheets
  • Reminder re Plagiarism/Appeals
  • Extensions/Resubmissions
  • Feedback in this course
  • Getting help

 

 

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

  • Presentations for each topic
  • Course Workbook – Financial Planning

 

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

www.dixon.com.au

Risk Profiling

www.finametrica.com

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

https://www.onefpa.org/business-success/documents/2015%20trends%20in%20investing%20survey%20report%20-%20fin.pdf

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://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-244-giving-information-general-advice-and-scaled-advice/

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

http://www.moneymanagement.com.au/expert-analysis/tools-guides/why-and-when-should-financial-planners-use-record-advice

 

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

https://www.fos.org.au/the-circular-10-home/the-fos-approach/statements-of-advice-must-be-clear-concise-and-effective/

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

https://www.fos.org.au/the-circular-10-home/the-fos-approach/statements-of-advice-must-be-clear-concise-and-effective/

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

http://www.makefd.com.au/

Risk Tolerance

http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?sid=1a439091-591e-4aaf-9a3d-50ac78bc1dee%40sessionmgr4003&vid=0&hid=4113

 

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

http://www.mylongevity.com.au

 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

http://estate.findlaw.com/

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:

  • 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.

Knowledge Evidence

To complete the unit requirements safely and effectively, you 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.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial planning field of work and include access to:

  • office equipment, technology, software and consumables. 

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:

FNSASICZ503 Provide Advice in Financial Planning

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