Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
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). |
Application of the Unit
Application of the unit |
This unit has application to job roles such as para-planners, financial planners and support staff. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
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 |
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 |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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Method of assessment |
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included. |
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Legislative and regulatory requirements may include: |
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Relevant ethical and regulatory requirements may include: |
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Unit Sector(s)
Unit sector |
Financial planning |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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