Develop financial plans

Unit of competency Outline

Date retreived
23/07/2026 11:03 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.

Unit of competency

National Code
FNSFPL614

State Code
OCI07

TGA Status
Current

DTWD Status
Approved

Current Release Number
1.00

Current Release Date
04/11/2020

View on TGA

State Implementation and Classification

Approved Date

11/03/2021

Field of Education

081105 - Investment And Securities

Original Release Date

11/03/2021

Nominal Hours

Description

This unit describes the skills and knowledge required to develop and prepare financial plans. It involves preparing to develop the plan by establishing its objectives and scope, and developing strategic assumptions and financial strategies that address plan objectives.The unit applies to those experienced in the financial planning industry who use specialised knowledge, systematic approaches, and strong analytical skills to develop recommendations and solutions to meet complex requirements when developing financial plans. Client information may be provided by authorised representatives, including financial advisers, shareholders, financial organisations, stockbrokers, trustees, agents and intermediaries.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.

Notes

Elements and Performance Criteria

1. Establish objectives and scope of financial plan

1.1 Identify client requirements and expectations for plan, risk profile and market parameters as per information provided by an authorised representative
1.2 Analyse current client situation to determine opportunities and constraints relating to plan
1.3 Review special features of client’s financial situation
1.4 Conduct research and review results according to organisational policies and procedures
1.5 Identify desired financial resource and market parameters and develop plan objectives for asset growth, income, risk, estate planning and other relevant objectives
1.6 Identify taxation and/or estate objectives and discuss with authorised representative

2. Develop strategic assumptions

2.1 Develop and test economic, legislative, regulatory and taxation assumptions relevant to client
2.2 Seek clarification from authorised representative and other financial services professionals as required on strategic assumptions according to organisational policies and procedures
2.3 Record strategic assumptions according to organisational policies and procedures

3. Develop financial strategy

3.1 Develop initial options based on strategic assumptions and client specifications
3.2 Analyse, model and prioritise accepted strategic options according to organisational procedures
3.3 Develop supporting arguments for each strategic option and include in draft financial strategy
3.4 Integrate strategy, where required, into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers for financial plan to achieve synergy and benefit for client
3.5 Review draft financial strategy against organisational best practice compliance and risk management requirements and ethical standards
3.6 Ensure that implications of each option and associated regulatory and legal implications for client’s situation, needs and goals, are explained to client
3.7 Include fee and charge analysis for draft strategy options
3.8 Identify areas where advice should be sought from other professionals

4. Review and settle draft strategy and options with authorised representative

4.1 Communicate initial options to authorised representative
4.2 Explain implications of each option to authorised representative and seek additional professional advice where required
4.3 Establish broad agreement on strategies with authorised representative and resolve any concerns and issues
4.4 Finalise products and options that meet agreed strategy with authorised representative

5. Develop preliminary financial plan

5.1 Identify comprehensive products and develop and obtain explanatory material for preliminary financial plan
5.2 Incorporate requirements for cash flow, liquidity, capital preservation and estate planning into preliminary financial plan
5.3 Develop recommendations for financial asset allocation structure, changes to client’s financial situation and risk management strategies and products
5.4 Incorporate applicable advice from accountants and lawyers into preliminary financial plan as required
5.5 Incorporate information on anticipated fees and charges and internal and external complaints resolution procedures into preliminary plan according to organisational policies and procedures

6. Ensure compliance of financial plan with regulatory and organisational requirements

6.1 Check preliminary financial plan to ensure role of representative or adviser is documented as required
6.2 Check that preliminary financial plan complies with legislative requirements and ethical and regulatory guidelines
6.3 Assess whether preliminary financial plan successfully achieves established objectives and scope

7. Finalise financial plan

7.1 Produce final version of financial plan according to organisational requirements
7.2 Include supporting information and product information in plan documentation, and regulatory and complaints information where required, according to organisational policies and procedures
7.3 Store and distribute plan to required personnel according to legislative and organisational requirements

No information

Replaces

State Code	National Code	Title	Type
AUR34	FNSFPL604	Develop complex and innovative financial planning strategies	Unit of competency

State Code	National Code	Title	Type
BFX2	FNS60920	Advanced Diploma of Paraplanning	Qualification