Course Title: Provide advice in managed investments

Part B: Course Detail

Teaching Period: Term2 2016

Course Code: BAFI5221C

Course Title: Provide advice in managed investments

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 analyse client needs and provide advice ethically and professionally on managed investments in compliance with industry regulations and codes of practice. It addresses the training requirements of current Australian Securities and Investments Commission (ASIC) and Australian financial services (AFS) licensing at Tier 1 level.

It applies to individuals who use well-developed interpersonal skills and excellent communication and self-management skills to perform an advisory role in managed investments. Refer to the FNS Implementation Guide Companion Volume or ASIC for specific guidance on requirements.               


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSASICT503 Provide advice in managed investments

Element:

1. Establish relationship with client and identify client’s objectives, needs and financial situation

Performance Criteria:

1.1 Establish client's knowledge about financial products and services 1.2 Respond to enquiries about managed investment products and services by explaining range of products and services available and their relevant fee and charging methodology 1.3 Inform client about role of adviser and licensee or principal responsible for adviser's conduct, including procedures for complaints handling and circumstances in which they should be engaged 1.4 Ask about client's objectives and goals, and obtain personal, financial and business details to identify client needs 1.5 Establish product risk profile of client, including their expectations of cash flow and relevant taxation obligations

Element:

2. Analyse client’s objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions

Performance Criteria:

2.1 Undertake assessment of client needs using all information gathered, taking into account client's product expectations and specific needs 2.2 Consult client throughout analysis for further clarification where necessary 2.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required 2.4 Assess and confirm product risk profile of client demonstrating ASIC identified generic and specialist knowledge relevant to products being offered 2.5 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs 2.6 Conduct relevant research, analysis and product modelling and draft appropriate solution, plan, policy or transaction for presentation to client

Element:

3. Present appropriate strategies and solutions to client and negotiate financial plan, policy or transaction

Performance Criteria:

3.1 Apply appropriate knowledge for service or product offered when presenting product 3.2 Clearly and unambiguously explain proposed transaction to client 3.3 Reinforce all relevant details, terms and conditions of product and service 3.4 Disclose impacts and possible risks of solution in clear and concise manner 3.5 Provide supporting written documentation and guide client through key aspects of documentation 3.6 Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction 3.7 Confirm that client understands proposed plan, policy or transaction

Element:

4. Agree to plan, policy or transaction and complete documentation

Performance Criteria:

4.1 Obtain client's formal agreement to proposed plan, policy or transaction 4.2 Clearly explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing 4.3 Ensure that proposal and all other statutory and transactional documents are completed and signed off by client 4.4 Exchange copies of signed agreement and other appropriate documentation

Element:

5. Provide ongoing service where requested by client

Performance Criteria:

5.1 Ensure that type and form of ongoing service, including reporting on performance and review of plan, policy or transaction, is agreed with client 5.2 Clearly explain all fees and costs for ongoing and specifically defined services and check that client understands these details 5.3 Provide ongoing service as required


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

Topics

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: Introduction to Managed Investments

 

Topic 1:

Characteristics of Managed Investments

Resources on Learning Hub

  • Presentations for each topic
  • Course Workbook – Managed Investments

 

Course Workbook

 

Managed Investments, Chapter 1

 

Topic 1 - Characteristics of Managed Investments

 

Websites

http://www.asx.com.au/products/managed-funds.htm

 

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/managed-funds-calculator

http://au.investsmart.com.au/managed-funds/find-managed-funds.asp

Other Resources

http://www.camac.gov.au/camac/camac.nsf/byHeadline/PDFDiscussion+Papers/$file/MIS_DP_Jun11.pdf

http://www.asic.gov.au/asic/asic.nsf/byheadline/Managed+investment+releases+by+year?openDocument

http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/5655.0Main+Features1Sep%202013?OpenDocument

2

11/7

 

Topic 1:

Characteristics of Managed Investments

Course Workbook

Managed Investments, Chapter 1

 

Topic 1 - Characteristics of Managed Investments

 

Websites

http://www.asx.com.au/products/managed-funds.htm

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-tools/managed-funds-calculator

http://au.investsmart.com.au/managed-funds/find-managed-funds.asp

Other Resources

http://www.camac.gov.au/camac/camac.nsf/byHeadline/PDFDiscussion+Papers/$file/MIS_DP_Jun11.pdf

http://www.asic.gov.au/asic/asic.nsf/byheadline/Managed+investment+releases+by+year?openDocument

http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/5655.0Main+Features1Sep%202013?OpenDocument 

Class Activity

Briefly discuss the concept of ‘pooling’ as it relates to managed funds and how it can benefit the investor. 

3

18/7

Topic 2:

Advantages and Disadvantages of Managed Investments

Course Workbook

Managed Investments, Chapter 1

 

Topic 2 - Advantages and Disadvantages of Managed Investments

 

Websites

https://www.moneysmart.gov.au/investing/managed-funds

http://www.learnerinvestor.com.au/investment-basics/investing-in-managed-funds-10-things-you-should-know

http://www.investors.asn.au/education/other-investments/managed-funds/ 

4

25/7

Topic 3:

Types of Managed Investments

 

 

 

 

 

 

Topic 4:

Taxation

 

Course Workbook

Managed Investments, Chapter 3

 

Topic 3 - Types of Managed Investments

Websites

 http://www.continuumfp.com.au/types-of-managed-investments/

http://www.colonialfirststate.com.au/prospects/FS078.pdf

Course Workbook

 

Managed Investments, Chapter 3

 

Topic 4 - Taxation

 

Websites

http://www.colonialfirststate.com.au/forms_tools/tax_guides.aspx?menutabtype=formstools

 http://www.ato.gov.au/

Class Activity

 

Briefly explain the role of the single responsible entity.

What is the purpose of a product disclosure statement? Where can investors find the PDS of an MIS that attracts them?

5

1/8

Part 2: Managed Investment Products

Topic 1:

Asset Allocation

 

 

 

Course Workbook

 

Managed Investments, Chapter 2

Financial Planning Advice, Chapter 2

 

Topic 1 - Asset Allocation

 

Websites

http://www.afrsmartinvestor.com.au/p/howto/investing/how_to_get_the_best_asset_allocation_1x3Tlf4YirgV2UEJCWk5xN

https://www.investsmart.com.au/managed-funds

 http://www.riskprofiling.com/

Class Activity

 

Asset allocation has a role to play in risk reduction. Explain how the concepts of diversification and asset allocation differ and the role each plays in the risk-reduction process.

 

Assessment Task 1 – Supervised Assessment

6

8/8

Topic 2:

Sector Funds Categories

 

 

 

 

 

 

 

 

 

Topic 3:

Categories – Multi Sector or Diversified Funds

Course Workbook

 

Managed Investments, Chapter 2

Financial Planning Advice, Chapters 2, 5& 6

 

Topic 2 - Sector Funds Categories

 

Websites

http://www.investopedia.com/terms/s/sectorfund.asp

http://www.russell.com/au/solutions/russell-iq-investments/

http://www.mlc.com.au/mlc/im_considering_mlc/adviser/mlc_investments/our_funds_and_approach/mlc_investment_options/multimanager_funds/sector_funds

Course Workbook

 

Managed Investments, Chapter 2

Financial Planning Advice, Chapter 5 & 6

 

Topic 3 - Categories – Multi Sector or Diversified Funds

Check – Point Assessment Task 2

Class Activity

What are the advantages of investing into one managed fund that invests across all asset classes compared with investing into a number of different managed funds that each invest into a separate asset class?

Feedback Assessment Task 1

 7

15/8

Part 3: Investment Management Process

Topic 1:

Investment Management

 

Course Workbook

 

Managed Investments, Chapter 3 & 4

 

Topic 1- Investment Management

 

Websites

http://www.investopedia.com/terms/p/portfoliomanager.asp

http://www.austrade.gov.au/gateway/Gateway-Funds1.html 

http://www.portfolioconstruction.com.au/

 

Class Activity

When examining a managed fund’s investment performance, what information should be reviewed?

8

22/8

Topic 2:

Investment Management Styles

Course Workbook

 

Managed Investments, Chapter 1 & 2

 

Topic 2 - Investment Management Styles

Websites

http://www.investopedia.com/articles/basics/06/stylebox.asp

http://www.colonialfirststate.com.au/producteducation/managedfunds/faq.aspx?menutabtype=pe

Other Resources

http://plum.com.au/downloads/Formspubs/PSF_SG_invmanstyle.pdf

Class Activity

If the value added through active portfolio management is such a relatively small proportion compared to the strategic return, why do fund managers become very involved in active management?

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

9

5/9

Part 4: Managed Investment Funds and Operational Issues

 

Topic 1:

Operations of Management Funds

 

Course Workbook

Managed Investments, Chapter 1 - 4

 

Topic 1 - Operations of Management Funds

 

Websites

https://www.moneysmart.gov.au/investing/managed-funds/how-to-buy-and-sell-managed-funds

https://www.amp.com.au/wps/portal/au/AMPAUProduct3C?vigurl=/vgn-ext-templating/v/index.jsp%3Fvgnextoid%3D519be6c951932210VgnVCM10000083d20d0aRCRD

Class Activity

 

Why are some fees directly deducted from investors’ accounts and others deducted from returns before periodic returns are declared?

 

Check – Point Assessment Task 2

 

10

12/9

Topic 2:

Unit Pricing

 

 

 

 

Course Workbook

Managed Investments, Chapter 2

 

Topic 2 - Unit Pricing

Websites

http://www.colonialfirststate.com.au/producteducation/managedfunds/why_do_unit_prices.aspx?menutabtype=pe 

Class Activity

Briefly explain the reasons why the unit price of an unlisted managed fund is likely to change on a regular basis.

11

19/9

Topic 3:

Performance Measurement

 

 

 

 

 

 

 

 

 

 

 

 

 

Topic 4:

Managed Funds Services

 

Course Workbook

Managed Investments, Chapter 1  - 4

 

Topic 3 - Performance Measurement

 

Websites

https://www.investsmart.com.au/portfolio-manager

http://www.canstar.com.au/managed-investments/ 

http://www.canstar.com.au/managed-investments/investment-returns/

http://www.moneymanager.com.au/find-a-managed-fund

Course Workbook

 

Managed Investments, Chapter 5

Financial Planning Advice Chapter 6

 

 

Topic 4 - Managed Funds Services

 

Websites

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

https://www.vanguardinvestments.com.au/auc/portal/homepage.jsp

 https://www.australianethical.com.au/managed-funds

Class Activity

 

Calculate the unit price of the RMIT Balanced Fund which currently has 62 million units on issue, using the following information extracted from its financial statements that will be provided on Blackboard.

When examining a managed fund’s investment performance, what information should be reviewed?

12

26/9

Part 5: Managed Products

Topic 1:

Money Market Securities

 

 

 

 

Topic 2:

Property Securities

 

Course Workbook

Managed Investments, Chapter 1 - 5

 

Topic 1- Money Market Securities

 

Course Workbook

 

Managed Investments, Chapter 1-5

 

Topic 2 - Property Securities

Check – Point Assessment Task 2

13

3/10

Topic 3:

Specialised Equity Schemes

 

 

 

 

Course Workbook

 

Managed Investments, Chapter 1 - 5

 

 

Topic 3 - Specialised Equity Schemes

 

Assessment Task 2 – Simulated Workplace Project

14

10/10

Topic 4:

Other managed Investment Schemes and Products

 

Course Workbook

 

Managed Investments, Chapter 1 - 5

 

 

Topic 4 - Other managed Investment Schemes and Products

 

Feedback for Assessment Task 2

15

17/10

Feedback and Re-assessment

Assessment Task 3 – Supervised Assessment

 

 

 

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:

  • interpret and comply with industry regulations and codes of practice
  • analyse client’s needs, financial situation and risk profile, and prepare appropriate strategies or solutions relating to managed investments
  • provide accurate and ethical advice on managed investment products and services
  • implement the plan, policy or transaction once agreed by the client and complete documentation accurately.

Knowledge Evidence

To complete the unit requirements safely and effectively, you must satisfy generic and specialist knowledge requirements relevant to the products and activities in which advice is given.

Generic knowledge  

  • analyse and provide an overview of the economic environment including:
    • characteristics and impact of economic and business cycles
    • interest rates and exchange rates
    • inflation
    • government monetary and fiscal policy
  • analyse and provide a detailed explanation of the operation of financial markets including:
    • roles played by intermediaries and issuers
    • structure and interrelationships within the financial markets
    • interrelationship between industry sectors
  • outline financial products, including:
    • concept of a financial product – general definition, and specific inclusions and exclusions
    • types of financial investment products
    • types of financial risk products.

 Specialist advice 

  • provide a detailed explanation of managed investment products including:
    • concept of managed investments
  • range of products offered under managed investments schemes, or a specific product offered under a scheme:
    • property trusts, real estate investment strategies, valuation techniques, property management
    • equity trusts, fixed interest trusts
    • serviced strata schemes
    • primary production schemes
    • film schemes
    • time-sharing schemes
    • types of risks associated with managed investment products
  • outline taxation issues in relation to managed investment products and markets in which they operate
  • discuss the legal environment including disclosure and compliance covering:
    • role of the representative or adviser
    • relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act
    • relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser’s recommendation
    • relevant industry standards and codes of conduct
    • regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements
    • complaints resolution procedures (external and internal)
  • explain theories of investment, portfolio management and management of investment and risk:
    • investment concepts
    • investment strategies
    • identification of types of risk
    • client risk profile.

Assessment Conditions

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

  • office equipment, technology, software and consumables
  • managed investment product information. 

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 managed investments.

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 4. 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 13)

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 recommend managed investments to a potential client constructed from the various asset classes. 

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 15)

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 5 to 14. 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 5

Assessment Task 2 – Simulated Workplace Project

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

Week 13

Assessment Task 3 – Supervised assessment

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

Week 15

 

 

Assessment Tasks

FNSASICT503

Provide Managed Investment Advice

Assessment Task 1 – Supervised assessment

X

Assessment Task 2 – Simulated Workplace Project

X

Assessment Task 3 – Supervised assessment

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