Course Title: Provide advice in managed investments
Part B: Course Detail
Teaching Period: Term2 2017
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: firstname.lastname@example.org
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
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
1. Establish relationship with client and identify client’s objectives, needs and financial situation
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
2. Analyse client’s objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions
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
3. Present appropriate strategies and solutions to client and negotiate financial plan, policy or transaction
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
4. Agree to plan, policy or transaction and complete documentation
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
5. Provide ongoing service where requested by client
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
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.
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.
Online learning materials can be accessed by going into the RMIT web sites Online Learning Hub.
The online learning materials listed include:
- Course outlines
- Client Files
- Power point Presentations
- Course Workbooks
- Supporting Reading material
- Industry relevant articles
Overview of Assessment
In order to achieve competency in this unit, you must provide:
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.
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.
- analyse and provide an overview of the economic environment including:
- characteristics and impact of economic and business cycles
- interest rates and exchange rates
- 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.
- 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 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 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 one single competency.
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 aim to enhance your skills and knowledge in types of managed investments in the retail field and in particular the areas of managed investment structures, tax requirements regulatory environment, and the risks associated with such investments and the styles of managing such funds.
Critical Aspects of assessment are described above in the performance evidence for this course.
Task 1 - Research and Application Assignment (Week 7)
This assessment has been designed for you to further develop your knowledge and skills in the foundation areas of managing investments.
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 managed investments.
The purpose of this assignment is to enhance your understanding and ability to apply the knowledge to practice in the following areas of managing investments.
- Establish Clients knowledge about financial products
- Consult client through analysis for further clarification where necessary
- Clearly and unambiguously explain proposed transaction to client
- Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs
- Clearly explain all fees and costs for ongoing and specifically defined services and check that client understands these details
Task 2 - Workplace Simulated Projects (Week 11)
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 managed investments 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 be required to analyze all of these documents in order to prepare relevant documents for the initial meeting with the client.
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 - 10. 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 meeting with a simulated client. The main purpose of the assessment is for you to clearly demonstrate analysis of the client’s objectives, needs, financial situation and risk profile and develop appropriate strategies and solutions in the financial advice prepared and presented to the client.
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 Group Ltd and you will prepare a financial plan that includes advice in relation to managed investments constructed from the various asset classes. Part 1 requires you to determine the structure and the types of managed investments would suit the simulated client’s personal circumstances which may include: shares, unit trusts and managed investment schemes.
The financial plan that you will prepare must demonstrate that the needs of the client have been met.
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 5 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 managed investments. 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.
A number of Learning Audit Dates have been scheduled and you are expected to progress as per the set targets throughout your studies.
Task 3 – Supervised Assessment (week 15)
For this Assessment Task you are required to demonstrate your knowledge of all the topics covered in throughout the semester from weeks 1 – 14 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 managed investments. 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 this competency.
• 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.
Course Overview: Access Course Overview