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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Confirm plan objectives and scope
   • Check plan strategy and key parameters with qualified financial planner and client
   • Establish research topics and review and compare research results to client requirements and expectations, as set out in strategy and key parameters
   • Analyse current client situation to determine opportunities and constraints within strategy boundaries
   • Develop plan objectives for asset growth, income, risk, taxation and any other objectives set out in plan strategy
2. Test strategic assumptions
   • Test client related key assumptions against draft strategy
   • Test and review economic key assumptions in strategy as required
   • Test legislative and regulatory assumptions, including taxation assumptions, against strategy
   • Obtain clarification from strategy author on any identified discrepancies
3. Develop financial plan to set strategy
   • Analyse and model strategic options set by financial planner
   • Identify and discuss inconsistencies in strategic options with strategy author
   • Develop financial plan according to established organisational guidelines
4. Review and settle draft strategy and options
   • Select strategic options for review and mode of presentation according to organisational guidelines
   • Review each strategic option with strategy author, including positives, negatives and risks for each option
   • Establish broad agreement on strategies with strategy author
5. Develop preliminary financial plan
   • Select specific products and options that meet given strategy and key parameters
   • Incorporate cash flow and liquidity, and set capital preservation and/or estate planning requirements consistent with given strategy and key parameters
   • Develop recommendations for financial asset allocation structure according to organisational guidelines
   • Develop recommendations for changes to income and taxation arrangements, including referral advice to accountants and/or lawyers as appropriate
   • Develop recommendations on risk management strategies and products, and incorporate according to organisational guidelines
   • Check all recommendations to ensure consistency with given strategy and key parameters, and that they meet specific objectives with high dependability of outcome
   • Incorporate description of anticipated fees and charges, and information on internal and external complaints resolution procedures into the plan, where appropriate
   • Document preliminary financial plan according to organisational guidelines and procedures

Performance Evidence

Evidence of the ability to:

develop a preliminary financial plan for clients that:

complies with relevant legislative requirements, industry codes of practice and organisational procedures

confirms financial plan objectives and scope, and tests strategic assumptions

assesses the impact of taxation, social security, economic and other government policy on client investment and financial requirements

provides recommendations on risks and financial outlays

work with other associated financial advisers

accurately document a preliminary financial plan according to organisational procedures.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

describe the key features of:

generic products available in the financial services industry

investment and savings vehicles, financial markets, asset classes and investment characteristics

analyse investment risk factors and relationship to return expectations

describe the key features of relevant industry codes of practice

explain the requirements related to the disclosure of capacity

explain the general impact of relevant economic, taxation and social security policy on a client's financial planning needs

describe the general impact of relevant estate planning considerations on a client's financial planning needs

outline the role of the financial planning adviser and the financial planning practice

describe the key terms of relevant legislation and regulations affecting the financial planning industry.

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