Course Title: Develop and prepare financial plan
Part B: Course Detail
Teaching Period: Term2 2017
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: firstname.lastname@example.org
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
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
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 procedure
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 activities, discussion threads, reflective journals on industry updates, presentations, quizzes and interactive sessions.
The collaborative classroom based activities will include role plays, group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.
You are expected to participate and contribute in all scheduled learning activities
Prior to training commencement a program level induction session will be conducted that comprises the following:
- Program overview and requirements
- Overview of assessment requirements
- Pre-Training Review including:
- Recognition of Prior Learning and Credit Transfers
- Assessment of current skills and knowledge
- Competency/Grading Criteria
- 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.
The online learning materials listed include:
- Course outlines
- Client Files
- Power point Presentations
- Course Workbooks
- Supporting Reading material
- Industry relevant articles
Online learning materials can be accessed by going into the RMIT web sites Online Learning Hub.
Overview of Assessment
In order to achieve competency in this unit, you must provide:
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.
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 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 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.
This course is comprised of three competencies that are co-delivered and co-assessed (delivered and assessed together).
FNSASICZ503 Provide advice in financial planning
FNSFPL503 Develop and Prepare Financial Plan
FNSIAD501 Provide appropriate services, advice and products to clients
You will demonstrate competency by undertaking three assessments, a research and application assignment, workplace simulated project and supervised assessment. The assessments for this course have been designed to allow you to apply your learning to particular workplace scenarios and demonstrate your competence in a variety of ways. The assessments focus in enhancing your skills in developing and preparing a financial plan that provides appropriate advice and products to meet the client needs.
Critical Aspects of assessment are described above in the performance evidence for this course.
Task 1 - Research and Application Assignment (Week 5)
This assessment has been designed for you to further develop your knowledge and skills in the foundation areas of financial planning advice.
You are required to demonstrate your knowledge by completing a series of theory and problem solving questions that involve research and the application of concepts relevant to the advice area of financial planning.
The purpose of this assignment is to enhance your understanding and ability to apply the knowledge to practice in the following areas:
- Informing client about procedures for complaints handling
- Use arrange of communication skills to gather clients, personal, financial and business skills
- Outline the concept of a financial product
- Outline the types of financial investment products
- Provide an overview of the operation of financial markets and roles played by intermediaries.
- Provide an overview of the interrelationships with Financial Markets & interrelationships between industry sectors
- Discuss the various disclosure and compliance in relation to Corps Act, ASIC Act, Privacy requirements, Financial Services Reform Act (FSRA), Competition & Consumer Act
- Relationship between ethics and regulatory requirements.
Task 2 - Workplace Simulated Project - Prepare and Deliver a Financial Advice in Financial Planning (Week 12)
For this assessment task you are to you are required to complete Part 1 and Part 2.
Part 1 – requires you to prepare a financial plan in financial plan for a simulated client of the Swanston Banking Group (Practice Firm).
Part 2 – requires you to conduct to deliver financial advice as prepared in Part 1 to the client.
The workplace simulated project is linked to a simulated workplace environment “the practice firm”, referred as Swanston Banking Group Ltd. The practice firm has a physical presence in Building 80, level 6, room 7. The Swanston Banking Group Ltd. has been set up as a simulated publicly listed company in the Financial Services (Banking) industry offering a retail banking and customer service experience of the highest level not offered or matched by its competitors.
The products and services offered to its personal customers (simulated clients) include banking and investment products and financial services such as bank accounts and debit cards, savings and investment accounts, credit cards, travel money cards, overseas and local money transfers, foreign exchange, superannuation, home and personal loans and Insurance.
The Swanston Banking Group has a website for prospective clients and an employee portal via the Learning Management System (Learning Hub).
For this project you will assume the role of a financial planner at the Swanston Banking Group Ltd (Practice Firm) and follow the company policies and procedures as if you were a real employee of the bank. You will need to access a specific simulated client file which will include client details, background of their particular circumstances, assets and liabilities statement, a bank statement, pay slips and a superannuation statement.
You will use “Advice Tools” stored in the employee portal throughout this course. The tools mirror those used in industry and will prepare you to adapt to industry practice and link your studies to the workplace. The tools include industry specific calculators and documents used in every day financial services practices including Authority to Access Information (AAI), Best Interest Duty file note (BID), client checklist, client acknowledgement form, fact find and style guide.
The purpose of the assessment is to enable you to demonstrate a breadth of understanding across the course material from weeks 1 - 11. It assesses the knowledge you have obtained through undertaking the topics, your communication skills in presenting that knowledge and your problem-solving skills in answering the questions posed in the meeting with a simulated client in the “Practice Firm”.
The Workplace Simulated Project requires you to complete two parts: Part 1 and Part 2.
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.
Once you have successfully completed Part 1, for Part 2 you will be expected to pair with a peer to presentation meeting the part of the client. You are to assume the role of the adviser while presenting the advice to the client. You will need to continue building a good rapport with the client from your previous meeting in Cluster 2 and present the financial plan that you drafted to them.
You will need to ensure that the client understands all the information provided particularly the concepts in reference to superannuation and retirement planning. 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.
The main aim of the second part is for you to demonstrate your communication skills in delivering all the required information and present the plan you prepared in Part 1 to illustrate how it meets the particular financial needs of the client.
You need to record the presentation meeting using your smart phone or MP4 player and upload the video to Google drive and share it with your teacher. For your recording you are required to wear business attire and assume the role of a financial planner conducting a meeting with a client. You will be provided with time (Week 9-11) in the practice firm, “Swanston Banking Group Ltd. to record your presentation meeting with your peers.
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 presentation meeting 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 all the topics covered in throughout the semester from weeks 1 – 13 by completing an open book in class supervised assessment. The assessment is comprised of a series of theoretical and practical questions including: short answer and mini case studies. You will only be permitted to bring a hard copy of the relevant workbook(s) and a calculator to the assessment.
The purpose of this task is to assess your understanding of the concepts and issues included in the topics covered throughout the semester with a focus on the requirements of RG146 specialist are in superannuation. This assessment will take place during your normal scheduled class time.
You must successfully complete all assessments, Task 1 – Research and Application Assignment Task 2 - Workplace Simulated Project and Task 3 - Supervised Assessment to be deemed competent.
Grading will be applied once you have been deemed competent for th
• 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 particular Course Assessment Task (or you do not submit/attend) you will be allowed one resubmission. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission.
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.
Grading & re-submissions
Re-submissions do not contribute to your overall grade for the course.
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.
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