Unit of competency Outline
Date retreived
22/07/2026 10:43 PM AWST
22/07/2026 10:43 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Prepare financial plans to set strategies and guidelines
Prepare financial plans to set strategies and guidelines
Unit of competency
National Code
FNSFPL402A
FNSFPL402A
State Code
D4137
D4137
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
30/05/2011
Field of Education
081105 - Investment And Securities
Original Release Date
30/05/2011
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to determine and prepare a financial plan according to organisational guidelines, where client's preferred strategies and key parameters have already been established by a qualified financial planner.It encompasses confirming a financial plan objectives and scope, testing strategic assumptions, reviewing and settling a draft strategy and options according to organisational guidelines, and developing preliminary financial plans.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so the varying State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Confirm plan objectives and scope
- 1.1. Plan strategy and key parameters are checked with a qualified financial planner and the client
- 1.2. Research topics are established and research results reviewed and compared to client requirements and expectations as set out in strategy and key parameters
- 1.3. Current client situation is analysed to determine opportunities and constraints within strategy boundaries
- 1.4. Plan objectives are developed for asset growth, income, risk, taxation and any other objectives set out in plan strategy
2. Test strategic assumptions
- 2.1. Client related key assumptions are tested against the draft strategy
- 2.2. Economic key assumptions in the strategy are tested and reviewed as required
- 2.3. Legislative and regulatory assumptions, including taxation assumptions are tested against the strategy
- 2.4. Clarifications are sought from the strategy author on any identified discrepancies
3. Develop financial plan to set strategy
- 3.1. Strategic options set by financial planner are analysed or modelled
- 3.2. Inconsistencies in strategic options are identified and discussed with the strategy author
- 3.3. Financial plan is developed according to established organisational guidelines
4. Review and settle draft strategy and options
- 4.1. Strategic options for review and a mode of presentation are selected according to organisational guidelines
- 4.2. Each strategic option is reviewed with the strategy author including positives, negatives and risks for each option
- 4.3. Broad agreement on strategies is established with the strategy author
5. Develop preliminary financial plan
- 5.1. Specific products and options are selected that meet given strategy and key parameters
- 5.2. Cash flow/liquidity, set capital preservation and/or estate planning requirements are incorporated consistent with given strategy and key parameters
- 5.3. Recommendations for financial asset allocation structure are developed according to organisational guidelines
- 5.4. Recommendations for changes to income and taxation arrangements are developed including referral advice to accountants/lawyers as appropriate
- 5.5. Recommendations on risk management strategies and products are developed and incorporated according to organisational guidelines
- 5.6. All recommendations are checked to ensure consistency with given strategy and key parameters, and meet specific objectives with a high dependability of outcome
- 5.7. Description of anticipated fees and charges and information on internal and external complaints resolution procedures is incorporated into the plan where appropriate
- 5.8. Preliminary financial plan is documented according to organisational guidelines and procedures
RANGE STATEMENT
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.
Legislative requirements may include:
Australian Securities and Investments Commission (ASIC) Act, policy and guidelines
Australian Taxation Acts
Consumer Affairs Act
Consumer Credit Code
contract law
Corporations Act
industry codes of practice
Insurance Act
Life Act
Privacy Act
social security regulations
State and Territory legislation relevant to the financial services industry
Trade Practices Act
trust law.
Appropriate strategic options may include:
flexibility
integration of strategies and solutions
investigation and assessment of costs
liquidity
return on investment
safety
tax effectiveness and investment spread of relevant products available to the adviser
volatility of expected income and/or capital growth.
Products include but are not limited to:
cash deposits
derivatives
direct investments
equities
futures
insurance products
managed investments
superannuation.
Risk assessment can include:
asset allocation and investment spread
borrowing risk and gearing
economic situation
institutional risk
lifestyle choices
market and sector risks considering:
the economic cycle
fixed interest
property value
stock market value
risk and return expectations of the client
specific product risk
volatility of client income and capital.
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.
Legislative requirements may include:
Australian Securities and Investments Commission (ASIC) Act, policy and guidelines
Australian Taxation Acts
Consumer Affairs Act
Consumer Credit Code
contract law
Corporations Act
industry codes of practice
Insurance Act
Life Act
Privacy Act
social security regulations
State and Territory legislation relevant to the financial services industry
Trade Practices Act
trust law.
Appropriate strategic options may include:
flexibility
integration of strategies and solutions
investigation and assessment of costs
liquidity
return on investment
safety
tax effectiveness and investment spread of relevant products available to the adviser
volatility of expected income and/or capital growth.
Products include but are not limited to:
cash deposits
derivatives
direct investments
equities
futures
insurance products
managed investments
superannuation.
Risk assessment can include:
asset allocation and investment spread
borrowing risk and gearing
economic situation
institutional risk
lifestyle choices
market and sector risks considering:
the economic cycle
fixed interest
property value
stock market value
risk and return expectations of the client
specific product risk
volatility of client income and capital.
EVIDENCE GUIDE
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.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
comply with relevant legislative requirements and industry codes of practice
confirm plan objectives and scope and test strategic assumptions and make appropriate checks on the proposed plan for its integrity and compliance
review and settle a draft strategy and options according to organisational guidelines and develop a preliminary financial plan
apply knowledge of financial products, financial markets and investment characteristics
work with other associated financial advisers
assess the impact of taxation, social security, economic and other government policies on client investment and financial requirements.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables.
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:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations/scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
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.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
comply with relevant legislative requirements and industry codes of practice
confirm plan objectives and scope and test strategic assumptions and make appropriate checks on the proposed plan for its integrity and compliance
review and settle a draft strategy and options according to organisational guidelines and develop a preliminary financial plan
apply knowledge of financial products, financial markets and investment characteristics
work with other associated financial advisers
assess the impact of taxation, social security, economic and other government policies on client investment and financial requirements.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables.
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:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations/scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9692 | FNSFPLN402B | Prepare financial plans to set strategies and guidelines | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR21 | FNSFPL402 | Prepare financial plans to set strategies and guidelines | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S706 | FNS40710 | Certificate IV in Financial Practice Support | Qualification |