Course Title: Develop and prepare financial plan
Part B: Course Detail
Teaching Period: Term1 2021
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: Doug Gourlay
Course Contact Phone: +61 3 9925 5944
Course Contact Email: doug.gourlay@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
Sanjay D'Souza
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 marketparameters 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 the Canvas learning management system and include your contribution to discussion threads, project portfolios, 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.
Remote Learning
This course will be delivered via our existing learning management system, Canvas. This means that, for the foreseeable future, there will be no face-to-face classes in any of the units for which you are enrolled.
Classes in each of your units will still take place in their normal scheduled time-slots, but instead of being conducted in a face-to-face mode, your teachers will utilise the Collaborate Ultra platform to deliver ‘live’ online classes. These classes delivered online will not only provide you with the required learning materials for those sessions, but they will also enable interactions with your teachers and fellow students via forums or discussion boards.
Teaching Schedule
The following courses are delivered together under the title Financial Advice:
- FNSASICZ503/BAFI5211C Provide advice in financial planning
- FNSFPL503/BAFI5214C Develop and prepare financial plan
- FNSIAD501/MKTG7920C Provide appropriate services, advice and products to clients
(The following weekly teaching schedule is subject to change)
Course Schedule:Financial Advice, Semester 1, 2021 | |||
Week |
Topic |
Readings and Activities |
Assessment |
|
Week 1
|
Introduction to course schedules
Part 1: Provide Advice in Financial Planning Topic 1: What is the Financial Planning Process? Topic 2: Six steps in the financial planning process |
Course Workbook Manage Client Relationship: Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services: Chapter 1, 3 & 4 |
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Week 2
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Part 1: Provide Advice in Financial Planning 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
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Week 3
|
Part 1: Provide Advice in Financial Planning 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
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Week 4
|
Part 1: Provide Advice in Financial Planning 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 |
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|
Week 5
|
Part 2: Develop and Prepare Financial Plans Topic 1: Introduction Statement of Advice (SoA) |
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters Overview of the Financial Services, Chapter 1, 3 & 4 |
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Week 6
|
Part 2: Develop and Prepare Financial Plans 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 |
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Week 7
|
Part 2: Develop and Prepare Financial Plans 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 |
|
|
Week 8
|
Part 2: Develop and Prepare Financial Plans 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 |
Assessment 1 – Research and Application Assignment due Feedback will be provided in week 10 and if required re-submissions due in week 13 |
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Mid-Semester Break 31 August - 06 September | |||
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Week 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 |
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Week 10
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Part 3: Present services, advice and products Topic 3: Presenting the Plan Topic 4: Implementation |
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters |
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Week 11
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Part 3: Present services, advice and products Topic 5: Ongoing service |
Course Workbook Manage Client Relationship, Chapter 4 & 5 Financial Planning Advice, All chapters |
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Week 12
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Part 4: Estate Planning Topic 1: Estate planning process Topic 2: The Will |
Course Workbook Financial Planning, Chapter 10 |
Assessment 2 – Workplace Simulated Project due Feedback will be provided in week 14 and if required re-submissions due in week 16 |
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Week 13
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Part 4: Estate Planning Topic 3: Estate planning considerations Topic 4: Managing the estate after death |
Course Workbook Financial Planning, Chapter 10 |
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Week 14
|
Assessment 3 – In-class Supervised Assessment Feedback will be provided in week 16 and if required re-submissions due in week 17 |
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Week 15
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Re-submissions |
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Week 16
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Re-submissions |
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Week 17
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Grade Entry |
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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's Learning Management System, Canvas.
The online learning materials listed may include:
- Course outlines
- Power point Presentations
- 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
You will demonstrate competency by undertaking three assessments. You must successfully complete all assessments to be deemed competent in this unit.
Assessment 1: Research and Application Assignment
Due: Week 8
Summary and Purpose: You must successfully complete all seven activities to be deemed competent in Task 1. For this Assessment Task you are required to demonstrate your knowledge by completing a series of seven theory and problem solving activities over the course of the semester. You will be assessed in the following areas.
a. Informing client about procedures for complaints handling
b. Use arrange of communication skills to gather clients, personal, financial and business skills
c. Outline the concept of a financial product
d. Outline the types of financial investment products
e. Provide an overview of the operation of financial markets and roles played by intermediaries.
f. Provide an overview of the interrelationships with Financial Markets & interrelationships between industry sectors
g. Discuss the various disclosure and compliance in relation to Corps Act, ASIC Act, Privacy requirements, Financial Services Reform Act (FSRA), Competition & Consumer Act
h. Relationship between ethics and regulatory requirements.
Assessment Instructions: You must reference all your work using the Harvard referencing System.
You should fill in coversheet with your name, number and the title of the assessment, attach your assessment and submit via Canvas on or before the due date.
Assessment 2: Workplace Simulated Project
Due: Week 12
Summary and Purpose: The purpose of the assessment is to enable you to demonstrate a breadth of understanding across the course material from weeks 1 - 13. 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 a fact find presentation meeting with a simulated client of the “Practice Firm”.
Assessment Instructions: For this assessment task you are required to complete Part 1 and Part 2
Part 1 -– requires you to prepare a financial plan for a simulated client of the Swanston Banking Group (Practice Firm) which is completed in Cluster 7.
Part 2 – requires you to deliver your financial advice as prepared in Part 1 to the client in a role play. The teacher will provide further information in the class as to the format and what is expected in order to fulfil this requirement.
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 be required to analyse all of these documents in order to prepare strategies that will help client to meet their goals, your advice and financial projection and modelling.
Assessment 3: Online Assessment
Due: Week 14
Summary and Purpose: 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 covered in this course.
Assessment Instructions: The assessment comprises seven short answer and problem solving style questions. The duration of the assessment is two hours. This assessment will take place during your normal scheduled class time.
Assessment Matrix
The assessment matrix that maps all the assessment is available on Canvas.
Other Information
Submission Requirements
- 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 the Assessment task document that includes a declaration and statement of authorship.
- Each page of your assessment should include a footer with your name, student number, the title of the assessment, unit code and title and page numbers.
Resubmissions (VET Programs)
If you are found to be unsuccessful (Not satisfactory/Unsatisfactory) in a Course Assessment Task 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.
Penalties for Late Submission
Late submissions of assignments without special consideration or extension will automatically be considered a re-submission (see above).
Extensions, Special Consideration and Adjustment to Assessments
Extensions:
Extensions are available for unforeseen circumstances of a short-term nature.
An application form must be submitted to the school at least one working day before the due date of the assessment.
Extensions can be approved for a maximum of one week (seven calendar days) past the due date for an assessment. (Where students need an extension exceeding one week they must instead apply for special consideration.)
Special consideration:
Special consideration is available for unexpected circumstances outside students’ control. These include but are not limited to: unexpected short-term ill health, and unavoidable family, work, cultural or religious commitments.
An application for special consideration is made in advance of an assessment wherever possible but will normally be accepted within five working days after the assessment date
For more information, see the Special Consideration page of the RMIT website.
Adjustments to Assessment:
RMIT provides several adjustments to assessment for students experiencing ongoing or long-term circumstances. Find the right one for your circumstances here.
Changes to the Assessment Scheme
Where a change to assessment approved by the dean/head of school changes an assessment due date, students will be given at least five working days’ notice of the new due date.
Feedback
You can expect to receive marks and feedback on in-course assessment work in time to improve your performance in related assessment tasks later in the course.
Academic Integrity and Misconduct
Students demonstrate academic integrity in their assessment practices by:
- engaging with assessment activities in an honest way;
- providing accountability for the authorship and originality of work submitted;
- acknowledging the work of others and the re-use of original work.
Academic misconduct is addressed in accordance with the Student conduct policy
Assessment involving research with human participants, their information or their tissue, or animal subjects is carried out in accordance with the Staff ethics and integrity policy.
For further information see the Academic Integrity website.
Review and Appeal
A student may request a review of an assessment result or appeal a final course grade in accordance with the Conduct of assessment and appeals section of the Assessment Processes.
Grade Criteria
You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.
The following grades are available for this course.
CA - Competency Achieved
NYC - Not Yet Competent
DNS - Did Not Submit for assessment
Course Overview: Access Course Overview