Course Title: Conduct complex financial planning research

Part B: Course Detail

Teaching Period: Term2 2016

Course Code: BAFI5220C

Course Title: Conduct complex financial planning research

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 undertake research of a complex nature for use in the financial planning process. Research would involve plans for those with above average sums of money, with complex legal, regulatory or estate issues, or an above average range of products or plans for major clients.

It applies to experienced individuals who use specialised knowledge and techniques to source, evaluate and synthesise complex information to solve problems and support the planning process.

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:

FNSFPL508 Conduct complex financial planning research

Element:

1. Evaluate client’s current situation and identify issues

Performance Criteria:

1.1 Undertake analysis of integrity of information provided by client 1.2 Ensure client objectives and expectations are identified, quantified and tested for viability by authorised representative 1.3 Establish basis for strategy development

Element:

2. Identify research requirements and parameters

Performance Criteria:

2.1 Establish aims and objectives of research, including strategy and product and performance parameters against client requirements and expectations 2.2 Clearly establish intended use of research information 2.3 Identify wide range of internal and external information resources 2.4 Identify information requirements not met by regular sources and develop strategies to access them legitimately 2.5 Establish timeframes and prioritise requests for information to ensure timelines are met

Element:

3. Extract and analyse information according to research requirements and parameters

Performance Criteria:

3.1 Establish data extraction criteria that are relevant to intended use and client requirements, and do not unduly limit scope of research 3.2 Identify trends to provide meaningful information on performance of possible strategies, products and markets 3.3 Undertake comprehensive risk assessment of products identified through research 3.4 Analyse strategies and financial products within appropriate timeframes to ensure currency of decision making 3.5 Prioritise information obtained according to client requirements and expectations 3.6 Identify issues that require specialist research or advice, and source and obtain appropriate advice

Element:

4. Summarise and present results of research

Performance Criteria:

4.1 Collate information on financial products and check against research specification 4.2 Prepare written performance, trend and risk analyses and check against research specification 4.3 Describe and document any qualifications or issues for further research 4.4 Present research findings to financial planner


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:   The Prospective Client

 

Topic 1:

Client related issues

Resources on Learning Hub

  • Presentations for each topic
  • Course Workbooks

 

 

Course Workbook

Manage Client Relationship, Chapters 1 & 2

Financial Planning Advice, Chapters 1 & 4

 

Topic 1 – Client related issues

 

Websites

https://www.moneysmart.gov.au/investing/financial-advice   (‘getting advice’)

http://www.wealthfoundations.com.au/blog/ideal-financial-planning-client/

http://www.coredata.com.au/research/investor-sentiment-report/  (Investor sentiment research)

http://partnerfinancialgroup.com.au/wp-content/uploads/Fact-Finder_Final1.pdf

 

Other Resources

Activity

Why might client perceptions of financial planners differ?

2

11/7

Topic 2:

Role of a financial planner

Course Workbook

Manage Client Relationship, Chapters 1 & 2

Financial Planning Advice, Chapters 1 & 4

Topic 2 – Role of a financial planner

 

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)

Planner needs to work in client’s best interest

 

Other Resources

Review the Pre interview form (PDF)

Activity

What do you see as the key features displayed in the Figure provided(Figure 1)

 

3

18/7

 

Topic 3:

Potential strategies

Course Workbook

 

Manage Client Relationship, Chapters 1 & 2

Financial Planning Advice, Chapters 1, 2, 3 & 4

 

Topic 3 – Potential strategies

 

Websites

www.dixon.com.au (Fact finders)

www.finametrica.com (Risk profiling)

https://www.myrisktolerance.com/home   (Risk profiling)

Other Resources

Review the client needs analysis document – New Age Planners (PDF)

Script following data collection (PDF)

Activity

As a financial planner, you see a prospective client who says all he wants you to do is recommend a portfolio of investments where he will put in $20 000 and use $50 000 in borrowed funds.

 

(a)         What other issues might be vitally important but unknown to theclient?

(b)         Whatotherissuesshouldthefinancialplanner  take

into account?

4

25/7

Topic 4:

Relationship development

 

Work Simulated Project introduction in Class

Course Workbook

 

Manage Client Relationship, Chapters 1 & 2

Topic 4 – Relationship development

 

Websites

http://www.fsc.org.au/downloads/file/ConsumerInfoFactSheetsFile/FactSheet_Dollarsmart_toolkit.pdf  (Dollarsmart: A financial toolkit for young Australians)

Other Resources

 http://fpa.com.au/wp-content/uploads/2015/09/FPA_CodeofPractice_July2013.pdf

Activity

Which of the eight specific points listed in the FPA's Code of Ethics (Reading) are relevant when advertising or promoting a financial planner's service to the public?

http://fpa.com.au/wp-content/uploads/2015/09/FPA_CodeofPractice_July2013.pdf

 

 

5

1/8

Part 2:   Data Gathering

Topic 1:

Data Collection

 

Course Workbook

Manage Client Relationship, Cht 1 & 2

Financial Planning Advice, Cht 1 & 4

Topic 1 – Data Collection

 

Websites

www.dixon.com.au (Fact finders)

www.finametrica.com (Risk profiling)

Other Resources

Activity

  1. If a prospective client indicated that she hoped to be able to retire in five years time, what sort of follow­ up questions could youask?

 

  1. What sort of questions might you ask a farmer regarding estateplanning?

 

Task 1- In Class Supervised Assessment

6

8/8

Topic 2:

 

Quantitative and qualitative data

Course Workbook

 

Manage Client Relationship, Chapters 3 & 4

Financial Planning Advice, Chapters 1 & 2

 

Topic 2 – Quantitative and qualitative data

 

Websites

 

https://www.myrisktolerance.com/home   (Risk profiling)

Other Resources

Review the client needs analysis document – New Age Planners (PDF)

Script following data collection (PDF)

Activity

Make some notes about why you think a prospective client should not be given or senta client data sheet to complete at home.

Case Study 1 – Client approach

 7

15/8

Part 3:   Client Needs and Strategies

 

Topic 1

Analysis and Synthesis of data

 

 

 

Course Workbook

Manage Client Relationship, Cht 2 & 3

Financial Planning Advice, All chapters

 

Topic 1 - Analysis and Synthesis of data

 

Website

http://www.fsc.org.au/downloads/file/ConsumerInfoFactSheetsFile/FactSheet_Dollarsmart_toolkit.pdf  (Dollarsmart: A financial toolkit for young Australians)

http://www.accountcorp.com.au/files/docs/articles/financial%20planning%20checklist.pdf

 

Other Resources

Case Study 2 – data collection

8

22/8

 

Topic 2:

Review complex material

 

 

 

 

 

 

Course Workbook

Manage Client Relationship, Cht 2 & 3

Financial Planning Advice, All chapters

Topic 2 - Review complex material

Website

http://fpa.com.au/about-financial-planning/how-it-works/(FPA financial planning process explanation)

http://www.ipac.com.au/blog/financial-plan-and-saving-strategies/

 

Other Resources

 

Case Study 3 – Risk profiling

Case Study 4 – client strategy

Check – Point - Workplace Simulated Project Task 2

Mid-Semester Break 29/08/16 – 4/9/2016

9

5/9

Part 4 – Research Issues

 

Topic 1

Investment approach

 

 

Course Workbook

Financial Planning Advice, All chapters

Topic 1 – Investment approach

Websites

http://www.ibisworld.com.au/industry/independent-investment-research-services.html

http://www.morningstar.com.au/Home

https://au.gradconnection.com/forums/thread/banking-finance-funds-management-and-investment-banking/top-9-investment-banks-in-australia/?page=last

http://www.beyond.lonsec.com.au/research-documents

Other Resources

Activity

Over a three-year period Manager A and Manager B achieved the following results:

Manager A1 : an average of 6.3 per cent return per annum

Manager B1: an average of 10.2 per cent return per annum

Both managers had claimed the same broad objectives as a number of other funds, which placed them all in the 'balanced' category. The average return for this category of balanced funds was 7.9 per cent per annum for the three-year period.

Manager A1 concentrated on fixed interest investments while Manager B1 had a high allocation to equities.

  • What conclusions can be drawn from the quantitative data about the performance of managers A1 andB1?
  • What further evaluation of the performance of managers A and B could be gained from a qualitative researchapproach?

10

12/9

Work Simulated Project in class

Check – Point - Workplace Simulated Project Task 2

 

11

19/9

 

Topic 2

Product Research

 

 

 

 

 

 

 

 

Course Workbook

Conduct Research Analysis Superannuation , All Chapters

Financial Planning Advice, All chapters

 

Topic 2 – Product Research

 

Websites

https://www.iress.com/au/solutions/financial-planning/

http://www.morningstar.com.au/Funds

http://www.morningstar.com.au/Stocks

Other Resources

 

Activity

Financial planner Diana Jones is studying some product information provided by a fund manager. One of her colleagues comments, 'You can't expect to get any useful information out of a prospectus. The best advice you can give a client is to invest in a wide range of shares and stay in themarket'.

 

Will investing in a wide range of shares and. staying in the market satisfy the criteria of giving 'good' advice to a client or is there a place for using product information?

 

Check – Point - Workplace Simulated Project Task 2

12

26/9

Part 5 – Plan Preparation

Topic 1

Plan preparation process

 

 

 

Course Workbook

Manage Client Relationship, Chapters 3 & 4

Financial Planning Advice, All chapters

Managed Investments, All chapters

 

Topic 1 – Plan preparation process

 

Websites

https://www.vanguard.co.uk/documents/adv/literature/investor-risk-profiling.pdf

https://www.nab.com.au/content/dam/nabrwd/legacy/personal/financial-advice/documents/Financial_Planning_Wealth_Creation.pdf

http://www.ioof.com.au/_pdf-flyer/map/education_flyers_map/investing_flyers/basics_of_investing

 

Other Resources

 

Activity

  1. In broad general terms, how do the following factors impact on the asset allocation process for aparticular client?
  • client riskprofile
  • appropriate  investmentstrategy
  • the economicoutlook
  • diversification  offunds
  • provision for non-coreexposure
  • worst casescenarios.

 

  1. Why is it essential that detailed accounts of investment types be provided to the client?

Check – Point - Workplace Simulated Project Task 2

13

3/10

Topic 2

Selecting investments  

 

 

 

 

 

 

 

Course Workbook

Manage Client Relationship, Chapters 3 & 4

Financial Planning Advice, All chapters

Managed Investments, All chapters

 

Topic 2 – Selecting investments 

 

Websites

http://www.ibisworld.com.au/industry/independent-investment-research-services.html

http://www.morningstar.com.au/Home

https://au.gradconnection.com/forums/thread/banking-finance-funds-management-and-investment-banking/top-9-investment-banks-in-australia/?page=last

http://www.beyond.lonsec.com.au/research-documents

Other Resources

 

Activity

Discuss the implications of the following true cases of deficiencies  in financial planning  software:

  1. exposure to an unlisted property trust still being included in the portfolio software following the freezing of redemptions in thattrust;
  2. projections of a superannuation benefit being based on percentage contributions of salary, but salary increases being projected at 8 per cent pa while real increases have averaged 4 percent;
  3. incorrect software treating annuity income asfully assessable for taxationpurposes;
  4. the code for a balanced income fund being mixed with that of a balanced growth fund when entering a client's portfolio details in the electronic monitoringsystem.

 

14

10/10

Topic 3

Case study example to work through

Course Workbook

Manage Client Relationship, Chapters 3 & 4

Financial Planning Advice, All chapters

Managed Investments, All chapters

Topic 2 – Case study example to work through

Case Study 5 - example to work through

15

17/10

Revision

 

Task 2- Workplace Simulated Project Due

 

16

24/10

Feedback and Re-assessment

Revision Activities

 

Feedback for Assessment Task 2

 

 

 

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:

  • conduct and document research of a complex nature for use in the financial planning process that includes:
    • testing and assessing the integrity of information
    • specifying and justifying research objectives and strategy
  • summarise and prioritise findings based on:
    • assessing the impact of trends on product performance to interpret and assess available products and services and how they can be combined in a comprehensive portfolio
    • assessing risks and benefits associated with using a range of products and services within a portfolio
  • evaluate outcomes against client requirements to form recommendations that comply with company policy and procedures, industry codes of practice and relevant legislation.

Knowledge Evidence

To complete the unit requirements safely and effectively, you must:

  • identify and outline the key features of a wide range of:
    • financial products and services and their uses in portfolios
    • relevant financial product information sources and research techniques
    • identify and classify a wide range of available information sources and describe research strategies to obtain information not readily available
  • describe the key features of:
    • financial industry related Acts and regulations
    • industry trends and latest research findings
    • relevant legislative and code of practice requirements
    • relevant organisational policy, objectives and guidelines
  • identify and discuss the major risks and implications associated with financial products and services
  • explain theories of investment, portfolio management and management of investment and risk
  • describe issues relating to taxation and social security systems and regulations, and their effect on the specified financial products.

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

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 5)

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 client related issues

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 Capstone Project (Due Date: Week 15)

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 complete a capstone assignment designed to address your overall knowledge, skills and competencies. The capstone is split into two components

  • Discussion of client issues, potential strategies and evaluation of progress
  • Preparation of a comprehensive SOA para planning request form

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.

 

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 5

Assessment Task 2 – Simulated Workplace Capstone Project

Grading will be applied once you have been deemed competent in the course

Week 15

 

 

Assessment Tasks

FNSFPL508

Conduct complex financial planning research

Assessment Task 1 – Supervised assessment

X

Assessment Task 2 – Simulated Workplace Capstone Project

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