Course Title: Develop and prepare financial plan
Part B: Course Detail
Teaching Period: Term2 2014
Course Code: BAFI5191C
Course Title: Develop and prepare financial plan
School: 650T TAFE Business
Campus: City Campus
Program: C5317 - Diploma of Financial Planning
Course Contact : Sam Tabit
Course Contact Phone: +61 3 9925 1466
Course Contact Email:email@example.com
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 performance outcomes, 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.
This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title:
FNSFPL503A Develop and prepare financial plan
2. Develop strategic assumptions
2.1. Client related and economic key assumptions are developed and tested
2.2. Legislative and regulatory requirements , including taxation assumptions, are identified and tested
2.3. Clarifications are sought from client or other professionals as required and strategic assumptions documented for client review
3. Develop financial plan strategy
3.1. Initial strategic options are developed based on strategic assumptions and client specifications
3.2. Strategic options are analysed and modelled with any inappropriate options rejected
3.3. Supporting arguments for each final strategic option are developed and included in a draft overall strategy
3.4. Any necessary client checks or consultations are made to verify the plan strategy
4. Develop preliminary financial plan
4.1. Specific products and options are selected to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required
4.2. Recommendations for financial asset allocation structure are developed including where provision is required for equities, trusts, partnerships, allocated pensions, and superannuation and planned capital expenditure
4.3. Recommendations for changes to income and taxation arrangements are developed including referral advice to accountants or lawyers as appropriate
4.4. Recommendations on risk management strategies and products are developed and incorporated in the plan
4.5. Anticipated fees and charges are incorporated into the preliminary plan with information on internal and external complaint resolution procedures available to the client
4.6. Preliminary financial plan is documented according to organisation guidelines and procedures
5. Ensure compliance of financial plan with regulatory and organisational requirements
5.1. Preliminary financial plan is checked to ensure that the role of the representative/adviser is properly documented and complies with relevant acts, regulations and regulatory guidelines
5.2. Preliminary financial plan is assessed for its ability to successfully achieve objectives
5.3. Preliminary financial plan is checked to ensure that it complies with ethical and regulatory requirements
6. Produce completed plan
6.1. Financial plan is produced in accordance with organisational quality control requirements
6.2. Supporting organisation and product explanatory information is attached
6.3. Regulatory and complaints information where required is attached
1. Establish Plan Objectives and Scope
1.1. Research results are reviewed and compared to client requirements and expectations
1.2. Current client situation is analysed to determine opportunities and constraints
1.3. Desired financial resource and market parameters are identified and assessed
1.4. Plan objectives are developed for asset growth, income, risk, taxation and any other objectives developed in consultation with the client
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.
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.
|1||7th of July|| Introduction to Financial Planning|
 The Concept of Financial Planning
 Personal Financial Statements,
 Establishing Financial Goals and
 Risk and Return
|Assessment task 1 distributed to students.|
|2||14th of July|| Financial Planning Skills|
Obtaining and Analysing Customer Data
|3||21st of July|| Introduction to Taxation|
• Income Tax
• Capital gains Tax
• Goods and Services Tax
• Fringe Benefits Tax
• Tax Effective Structures.
|Task 1 - Assessment - Due|
|4||28th of July|| Managed Investments|
Costs & Benefits
| Assessment Task 2 - Case Study Handout
You will receive the feedback in week 11.
|5||4th of August|| Direct Investments|
• Financial Products, including:
o Cash and Fixed Interest
o Alternative investments
|6||11th of August|| Analysis of Share Investments|
 Risk & Return
 Dividend Growth Model
|7||18th of August|| Analysis of Share Investments|
 Risk & Return
|8||25th of August|| The Financial Planning Profession|
 The Role of the Financial Planner
 The Steps in Preparing a Plan
 The Regulatory Environment
 The Legislative Environment
 Complaints Schemes
Codes of Ethics
|Mid Semester Break||MID-SEMESTER BREAK (1st Sep – 7th Sep 2014)|
|9||8th of September|| Development of a Personal Plan|
 The Statement of Advice
 Ethical Considerations
 Effective Communication
Planning for Implementation
|10||15th of September|| Development of a Personal Plan|
The Statement of Advice
Planning for Implementation
|11||22nd of September|| Social Security|
 Eligibility – Means Test
|12||29th of September|| Social Security|
• Eligibility – Strategies to achieve
• Discussing Individual Needs
• Types of Benefits
|13||6th of October|| Estate Planning: Wills & Probate, Taxation|
Power of Attorney
|Task 2 - Case Study - Due
You will receive the feedback in week 14. If required, resubmission for this assessment is due by the end of week 14.
|14||13th of October|| Estate Planning, • Intestacy, • Trusts|
• Structures, Estate/Non estate assets
|15||20th of October||Revision||Revision|
|16||27th of October ||Final Class assessment||Task 3 - Assessment - Task 3|
Other materials will be placed on the Blackboard and will be used when directed so by your teacher.
Overview of Assessment
Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written and practical tests, problem solving exercises, presentations, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files, review of products produced through work-based or course activities.
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. You will be provided with feedback throughout the course to check their progress
This competency is co-delivered with the following courses:
BAFI5189C Provide advice in financial planning advice
MKTG6075C Provide appropriate services advice and prodcts to clients
ACCT5336C Analyse financial markets products for clients
Critical Aspects of Assessment
Evidence of the ability to:
- comply with relevant legislation and industry codes of practice and interpret and apply organisational operational requirements policies and procedures
- establish plan objectives and scope, and develop strategic assumptions and a financial plan strategy ensuring compliance of the plan with regulatory and organisational requirements
- develop a detailed financial plan that maximises the client’s outcomes and reach client objectives and identify key assumptions on which the plan is based
- analyse strategic options and make justified recommendations using use in-depth knowledge of the financial planning industry, industry regulations, codes of practice and financial products, financial markets and investment characteristics
- assess impacts of taxation, social security, economic and other government policies on client investment and financial requirements.
You are required to complete 3 tasks.
You must successfully complete all 3 tasks to be deemed competent in this unit.
TASK 1 - In class assessment (Due Date: End of week 3)
For this Assessment Task you are required answer a series of multiple choice and short answer questions to demonstrate knowledge in the financial planning
TASK 2 (Due Date: End of Week 13)
For this assessment task you are required to research and develop strategies based on a case study covering all the topics in this course.
TASK 3 (Due Date: End of Week 16)
For this assessment task you need to undertake a open book in class assessment comprised of a series of questions based on all the topics covered in this competency.
This assessment will be conducted during normal class time.
- 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, Julie Macpherson, 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.
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.
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:
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