Unit of competency Outline

Date retreived
22/07/2026 9:24 PM AWST

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Develop and prepare financial plan

Develop and prepare financial plan

Unit of competency
National Code
FNSFPL503
State Code
AUR66
TGA Status
Deleted
DTWD Status
Deleted
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
081105 - Investment And Securities
Original Release Date
16/09/2015
Nominal Hours
60
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.
Notes
Elements and Performance Criteria
1. Establish plan objectives and scope
  • 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 market parameters
  • 1.4 Develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with client
2. Develop strategic assumptions
  • 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
3. Develop financial plan strategy
  • 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
4. Develop preliminary financial plan
  • 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
5. Ensure compliance of financial plan with regulatory and organisational requirements
  • 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
6. Produce completed plan
  • 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
No information
No information
Replaces
State Code National Code Title Type
D4141 FNSFPL503A Develop and prepare financial plan Unit of competency
State Code National Code Title Type
AVX5 FNS50615 Diploma of Financial Planning Qualification
AWC4 FNS40715 Certificate IV in Financial Practice Support Qualification