Unit of competency Outline
Date retreived
23/07/2026 9:52 PM AWST
23/07/2026 9:52 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.
Develop and prepare financial plan
Develop and prepare financial plan
Unit of competency
National Code
FNSFPL503A
FNSFPL503A
State Code
D4141
D4141
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
19/03/2012
Field of Education
081105 - Investment And Securities
Original Release Date
19/03/2012
Nominal Hours
60
Description
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).
Notes
Elements and 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
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 and regulatory requirements may include:
Australian Securities and Investments Commission (ASIC) Act, policy and guidelines
Consumer Affairs Act
Consumer Credit Code
contract law
Corporations Act
industry codes of practice
Insurance Act
Life Insurance Act
Privacy Act
social security regulations
State and Territory legislation
Taxation Acts
Trade Practices Act
trust law.
Relevant ethical and regulatory requirements may include:
checking integrity for completeness
disclosure of any conflicts of interest
full disclosure of remuneration/fees and any other matter that may influence the representative's recommendations
guarantees of confidentiality
meeting relevant industry codes of conduct and practice
preparation in utmost good faith.
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 and regulatory requirements may include:
Australian Securities and Investments Commission (ASIC) Act, policy and guidelines
Consumer Affairs Act
Consumer Credit Code
contract law
Corporations Act
industry codes of practice
Insurance Act
Life Insurance Act
Privacy Act
social security regulations
State and Territory legislation
Taxation Acts
Trade Practices Act
trust law.
Relevant ethical and regulatory requirements may include:
checking integrity for completeness
disclosure of any conflicts of interest
full disclosure of remuneration/fees and any other matter that may influence the representative's recommendations
guarantees of confidentiality
meeting relevant industry codes of conduct and practice
preparation in utmost good faith.
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 legislation and industry codes of practice and interpret and apply organisational operational requirements policies and procedures
establish plan objectives and scope, and develop strategic assumptions and a financial plan strategy ensuring compliance of the plan with regulatory and organisational requirements
develop a detailed financial plan that maximises the client's outcomes and reach client objectives and identify key assumptions on which the plan is based
analyse strategic options and make justified recommendations using use in-depth knowledge of the financial planning industry, industry regulations, codes of practice and financial products, financial markets and investment characteristics
assess impacts 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
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 legislation and industry codes of practice and interpret and apply organisational operational requirements policies and procedures
establish plan objectives and scope, and develop strategic assumptions and a financial plan strategy ensuring compliance of the plan with regulatory and organisational requirements
develop a detailed financial plan that maximises the client's outcomes and reach client objectives and identify key assumptions on which the plan is based
analyse strategic options and make justified recommendations using use in-depth knowledge of the financial planning industry, industry regulations, codes of practice and financial products, financial markets and investment characteristics
assess impacts 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
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 |
|---|---|---|---|
| C9696 | FNSFPLN503B | Develop and prepare financial plan | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR66 | FNSFPL503 | Develop and prepare financial plan | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S722 | FNS50610 | Diploma of Financial Planning | Qualification |
| D719 | FNS50611 | Diploma of Financial Planning | Qualification |
| S706 | FNS40710 | Certificate IV in Financial Practice Support | Qualification |