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Subject Guide: ACBUS107A – FINANCIAL PLANNING FUNDAMENTALS

© TAFENSW– Higher Education Semester 2, 2018 Page | 1

Subject Guide

Subject Code: ACBUS107A

Subject Name: FINANCIAL PLANNING FUNDAMENTALS

Created: 1/06/2018| Master



Contents

1. Introduction ............................................................................................... 3

1.1. Subject overview .......................................................................................... 3

1.2. Pre-requisites ................................................................................................ 3

1.3. Co-requisites ................................................................................................. 3

1.4. Credit points ................................................................................................. 3

2. Subject learning outcomes ........................................................................ 4

3. Assessment ................................................................................................ 5

4. Subject schedule ........................................................................................ 6

5. Recommended reference materials ........................................................ 12

5.1. Prescribed texts .......................................................................................... 12

5.2. Readings ...................................................................................................... 12

5.3. Online resources ......................................................................................... 13

6. Additional information ............................................................................ 14

6.1. Assessment schedule .................................................................................. 14

6.3 Submission requirements ............................................................................ 35

6.4 Student conduct and academic standards .................................................. 36

6.5. Approaches to teaching and learning ......................................................... 36

6.6 Graduate attributes ..................................................................................... 38



1. Introduction

1.1. Subject overview

In this subject you will learn about the components that encompass the financial planning process in Australia. Students will make reference to the continuum between consumers - advisers - industry bodies - government regulators and government. This subject will also concentrate on the Financial Planning Standards Board body of knowledge (insurance, investment and debt) as a holistic approach to meeting a client’s goals, needs and objectives, in an ethical, socially responsible and fiduciary manner.

1.2. Pre-requisites

There are no pre-requisites for this subject

1.3. Co-requisites

There are no co-requisites for this subject

1.4. Credit points

This subject is worth 10 credit points.

1.4. Subject duration

Weekly face to face contact hours are 4 hours per week (hpw) over 12 weeks.

Workshop 4 hours

In addition, students are expected to undertake 6 hours per week of private study in order to achieve the

subject learning outcomes.



2. Subject learning outcomes

At the end of this subject students will be able to:

1. Explain the advisory functions relating to the professional practice environment; the role of the financial

planner, the participants in the advisory services market and the range of services provided by financial

planners.

2. Describe the Australian legal framework within which financial planners operate and their legal, social

and ethical responsibilities.

3. Apply the steps involved in the financial planning process and services to client scenarios by synthesising

information.

4. Undertake a collection of client data, research, analyse and construct strategies in a report to meet

client requirements in an ethical and professional manner.



3. Assessment

3.2.1. Method of assessment

The table below summarises assessment requirements for this subject. Further details about assessment

requirements including submission requirements and grading criteria are provided in the Additional

Information section of this Subject Guide as well as on the subject Moodle.

Assessment Event When

assessed

Weighting Subject

Learning

Outcomes

Assessed

Course

Learning

Outcomes

assessed

Role Play Review session

Week 4

Week of 13 August

n/a n/a n/a

1. Role Play

Students in groups of two role-play an initial client meeting presenting the Financial Planning Process and Financial Services Guide.

This assessment will develop oral communication skills.

Week 6

Week of 27 August

20% 1,3 1, 3

Case Study – Review session

Week 8

Week of 10 Sept.

n/a n/a n/a

2. Case Study - 2,000 words This assessment requires students to undertake research and recommend suitable strategies and product appropriate to the needs of a client. Students will develop the capability of engaging technical knowledge into a written document.

Week 10

Week of 10 Sept.

30% 2,4 1, 5, 7

3. Final Exam – Duration 3 hours

This exam will consist of a combination of multiple choice, short answer and case study questions.

Exam Week

5 – 16 November

50% 1,2, 3, 4 1, 3, 5, 7



4. Subject schedule

The weekly schedule below must be read in conjunction with information provided on the subject Moodle.

WEEK NO: TOPICS AND ACTIVITIES

Orientation Week Orientation activities Review of syllabus and assessment activities.

Week 1

Topic: An introduction to the Financial Planning environment & The Client-Adviser Relationship This topic covers the advisory functions; the role of the financial planner; the participants in the advisory services market and the range of services provided by financial planners. We also cover the six steps to the financial planning process (within the Code of Professional Practice), key elements of best practice, client engagement and disclosure documents explained and completed in the first meeting.

Text readings: Ch 1 & 3: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Reading list: Code of Professional Practice, FPA publication, July 2013 (most Current) Annual Report on Professional Standards – Review, 2014/15 Topic questions to be completed before workshop: Chapter 1 – Questions: 1, 8 Problem questions: 6, 7 Case study questions: 1.1 Chapter 3 – Questions: 2, 7 Problem question: 5 Case study question: 3.1

http://fpa.com.au/wp-content/uploads/2015/09/FPA_CodeofPractice_July2013.pdf

https://fpa.com.au/wp-content/uploads/2016/02/ProfStandards_Annual-Report-2015-FINAL.pdf



Week 2

Topic: Ethics and Compliance This topic covers the ethical and compliance considerations in the financial services and planning industry, including the Future of Financial Advice Legislation (FOFA Act). Text readings: Ch 2: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Reading List: ASIC Regulatory Guideline 175 – Licensing - Financial Product Advisers: Conduct and Disclosure (source: www.asic.gov.au – regulatory guidelines) – March 2017 ASIC Regulatory Guideline 244: Giving information, general advice and scaled advice (source: www.asic.gov.au – regulatory guidelines) – December 2012 Topic questions to be completed before workshop: Chapter 2 – Questions: 1, 4 Problem questions: 4, 7 Case study question: 2.2

Week 3

Topic: Cash Flow and Budgeting and Debt and Debt Management Cash Flow and Budgeting This topic will cover personal cash flow and budgeting statements, good record keeping and the interpretation of personal financial statements, as well as budgeting and cash flow strategies to meet client goals and objectives. Debt and Debt Management This topic will cover types of personal debt, the use debt and credit traps, as well as debt management and utilising debt to invest strategies to meet client goals and objectives. Text readings: Ch’s 5 & 6: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Topic questions to be completed before workshop: Chapter 5 – Questions: 4, 6 Problem questions: 1, 4 Case study question: 5.1 Chapter 6 – Questions: 1, 3 Problem questions: 1, 8 Case study question: 6.1

http://download.asic.gov.au/media/4191992/rg175-published-22-march-2017.pdf

http://download.asic.gov.au/media/4191992/rg175-published-22-march-2017.pdf

http://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-244-giving-information-general-advice-and-scaled-advice/




Week 4

Review and practice session (formative feedback)

Topic: An introduction to risk analysis, management and asset allocation This topic covers an introduction to client risk tolerance, risk assessment, risk profiling and asset allocation, as well as how this links to meeting client goals, objectives and investment portfolio. Text readings: Ch 7: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Article: “Risk Tolerance and Goal-Based Financial Planning”, Grable J., E., PhD, CFP, Carr, N. A., MS, CIMA, Journal of Financial Service Professionals, January, 2014 Topic questions to be completed before workshop: Chapter 7 - Questions: 2, 6 Problem questions: 7, 8 Case study question: 7.2

Week 5

Topic description: Investing in the major asset classifications This topic will cover an introduction to the four basic asset classes, its features, risks and rewards, as well as understanding the trade-off between risk return of the various asset classes. We will be Identifying the types and investment strategies of the major asset classifications; cash, fixed interest, shares and property. Topic description: Managed Investments This topic will cover an introduction to the four basic asset classes, its features, risks and rewards. We will be Identifying categories of managed investments and explain the structure, advantages and disadvantages, investment profiles and fee structure of managed funds, the importance of diversification, management styles and tax implications. Text readings: Ch’s 8, 9, 10, 11: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Topic questions to be completed before workshop: Chapter 8 - Questions: 4 Problem question: 4 Chapter 9 - Question: 2 Problem question: 4 Case study question: 9.1 Chapter 10 - Question: 6 Problem question: 7 Chapter 11 - Questions: 1,2,3 Problem questions: 6,7 Case study question: 11.1

https://www.onefpa.org/journal/Pages/OCT16-Incorporating-Financial-Risk-Tolerance-Research-into-the-Financial-Planning-Process.aspx




Week 6

Assessment 1: Role Play Due

Assessment 1: Role play – Presentations Conducted & assessed in class at allocated times

*Role plays may be conducted in Week 7 also, subject to cohort numbers. In this case, revision class will be

conducted in Week 13.

Week 7

Topic description: Taxation overview for Financial Planners and Tax Planning This topic provides an overview of the Income Tax Assessment Act 1997, examines the relevance of various types of tax in the financial services industry and the role of taxation as a financial planning strategy. An overview of the new Tax Agent Services Act 2009 (TASA) and its regulations is also discussed, which includes education and experience requirements for planners to register with the Tax Practitioners Board (TPB). Text: Ch’s 13 & 14: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Reading List: Tax Practitioners Board requirements for Tax (Financial) advisers Topic questions to be completed before workshop: Chapter 13 – Question: 1, 2 Problem question: 3 Case study question: 13.2 Chapter 14 – Problem questions: 7,8 Case study question: 14.1

Week 8

Assessment 2: Case Study – Formative Feedback

Topic description: Introduction to Life and General Insurance This topic will provide an introduction into the importance and cover the role of insurance as a financial planning strategy. An overview of personal and general insurance products and their suitability to clients. Text: Ch’s 15 & 16: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Topic questions to be completed before workshop: Chapter 15 – Questions: 1, 2 Problem questions: 1, 2 Chapter 16 – Problem question: 2 Case study question: 16.2

https://www.tpb.gov.au/qualifications-experience-tax-financial-advisers



Week 9

Topic description: Fundamentals of superannuation

Superannuation This topic covers the history and regulation of superannuation in Australia. The stages of superannuation, an introduction of the superannuation guarantee system, types of contributions, preservation and benefit payment standards and its tax treatment. Text: Ch’s 12 & 17: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Topic questions to be completed before workshop: Chapter 12 – Question: 2, 3 Problem question: 6 Case study question: 12.1 Chapter 17 – Question: 6 Problem question: 2 Case study question: 17.2

Week 10

Assessment 2: Case Study Due

Topic description: Fundamentals of retirement planning and Social Security

Retirement This topic will provide an introduction to retirement issues and planning strategies, taking into consideration the types of retirement income products, tax treatment, the role of social security system in Australia, the rationale behind social security, types of benefits, as well as social security strategies used by financial planners. Text: Ch’s 17 & 18: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Topic questions to be completed before workshop: Chapter 17 – Question: 8 Problem question: 4 Case study question: 17.1 Chapter 18 – Question: 2 Problem question: 1 Case study question: 18.2



Week 11

Topic description: Estate Planning and key factors of successful financial planning This topic covers the importance of estate planning as a financial planning strategy, means and methods of transferring wealth, wills, power of attorneys and trusts explained as well as understanding the key factors of successful financial planning. Text: Ch’s 19 & 20: Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609 Topic questions to be completed before workshop: Chapter 19 – Questions: 3, 5 Problem questions: 1, 6 Chapter 20 – Question: p899

Week 12 Topic description: Revision This week we recap and provide an overview of all of the topics covered to date and summarise the key components and foundations of financial planning. This will assist students with revision for the final exam. In Class Exam Revision

Week 13 STUDY WEEK OR

REVISION WEEK*

Weeks 14 and 15 EXAMINATION WEEK



5. Recommended reference materials

5.1. Prescribed texts

Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths, ISBN: 9780409347609

5.2. Readings

A list of readings to support lecture topics is provided in section 5: Subject Schedule.

Journals and other publications

1. Code of Professional Practice, FPA publication, July 2013 (most Current)

2. Annual Report on Professional Standards – Review, 2014/15

3. ASIC Regulatory Guideline 175 – Licensing - Financial Product Advisers: Conduct and Disclosure (source:

www.asic.gov.au – regulatory guidelines) – March 2017

4. ASIC Regulatory Guideline 244: Giving information, general advice and scaled advice (source:

www.asic.gov.au – regulatory guidelines) – December 2012

5. “Risk Tolerance and Goal-Based Financial Planning”, Grable J., E., PhD, CFP, Carr, N. A., MS, CIMA, Journal of

Financial Service Professionals, January, 2014

6. Tax Practitioners Board requirements for Tax (Financial) advisers

http://fpa.com.au/wp-content/uploads/2015/09/FPA_CodeofPractice_July2013.pdf

https://fpa.com.au/wp-content/uploads/2016/02/ProfStandards_Annual-Report-2015-FINAL.pdf





https://www.tpb.gov.au/qualifications-experience-tax-financial-advisers



5.3. Online resources

www.abs.gov.au

www.afma.com.au

www.apra.gov.au

www.asx.com.au

www.ato.gov.au

www.cch.com.au

www.centrelink.gov.au

www.asic.gov.au

www.financialplan.about.com

www.fpa.asn.au

www.moneymanagement.com.au

www.rba.com.au

www.superannuation.asn.au

www.superguide.com.au

www.superinvestor.com.au

www.superfuture.gov.au/

www.moneysmart.gov.au/

http://www.abs.gov.au/

http://www.afma.com.au/

http://www.apra.gov.au/

http://www.asx.com.au/

http://www.ato.gov.au/

http://www.cch.com.au/

http://www.centrelink.gov.au/

http://www.asic.gov.au/

http://www.financialplan.about.com/

http://www.fpa.asn.au/

http://www.moneymanagement.com.au/

http://www.rba.com.au/

http://www.superannuation.asn.au/

http://www.superguide.com.au/

http://www.superinvestor.com.au/

http://www.superfuture.gov.au/

http://www.moneysmart.gov.au/



6. Additional information

6.1. Assessment schedule

Assessment 1: Role Play – Initial Meeting Weighting: 20%

Subject Learning Outcomes assessed: 1, 3

Graduate Attributes: 1, 3 Due: Week 6

For this assessment, students will be required to role play a first client meeting, presenting the Financial

Planning Process, Financial Services Guide and uncovering a client’s goals and objectives.

This assessment will develop verbal and non-verbal communication skills. Students will form in groups of two

or three (Financial planner – client/s), where they will present the Financial Planning Process, their Financial

Planning company’s Financial Services Guide and uncover at least one S.M.A.R.T goal in an ‘initial client

meeting’. The teacher will assess how professionally the student presents and communicates the process and

Financial Services Guide content, as well as effectively communicating and conducting a meeting in front of

peer and assessor.

This task requires the use of technical interpretation. It demonstrates the students understanding of the

relevant knowledge and displays the presenter’s ability to explain the issues involved and orally communicate

the financial planning process and Financial Services Guide content, as well demonstrate the student’s ability

to lead discussion on the topic.

Instructions:

The presentation must be for a minimum of 15 and a maximum of 20 minutes.

All submissions must comply with the requirements listed in the Course Handbook.

The first client meeting instructions and assessment criteria are overleaf for all students to follow.



You will meet with a client, to help them with their financial planning needs.

This assessment will be organised in the following way:

you will be formed into groups of 2 to 3 people {make sure you exchange contact details with group

members};

there are several scenarios you may be given for your role as the client;

your teacher will supply you with one of these scenarios before your group is assessed for you role

playing the client. For instance, in a group of 3, two students will be given the scenario of a husband

and wife they are to play as the clients. The person being assessed playing the financial planner does

not need to study the client scenario – the role play is assessing their ability to communicate and engage

the client, as well as addressing the Financial Planning Process and a Financial planning Financial

Services Guide of your choice;

the student being assessed will play the role of a Financial Planner with approximately 1 years’

experience;

you will not be assessed when you play the role of a client;

you must dress appropriately and professionally to present yourself as a Financial Planner or you will

NOT be able to participate in the assessment;

you will provide the Financial Services Guide, the 6 step financial planning process and a client file

note/s to record initial client data.

Assessment criteria:

You will be assessed on the following steps of the first meeting process:

1.ENGAGE

a. Client introduction Introduce yourself to the client in a professional manner

b. Build rapport

Make the client feel comfortable & reduce tension Build rapport on areas of common ground (JIFFS)

c. Client’s reason for the meeting

Uncover the clients’ issues Gained an understanding of why they need your professional advice

2. MEETING PURPOSE & PRESENT FSG

a. Contextualise meeting (FP process)

Informed the client of the financial services process and services (ie ‘6 Steps) Visual aid used or drawn when explaining

b. Present FSG

Explained your role & the services of your organisation using an FSG

Client instructed to sign off acknowledgement

3. CLIENT INFORMATION - FNA

a. Uncover client needs and wants

Using effective communication throughout (listening skills) by encouraging client/s to express their needs by asking clear probing questions throughout Explaining how you can help the client with your expertise Obtaining & recording relevant information on client’s existing financial situation, SMART goals & objectives (related to at least 1 goal explained in 1 c)



b. Get agreement to proceed to FNA

Explaining what an FNA is & it’s importance Receiving clients agreement that they want to proceed to completing the FNA

4. RISK

a. Risk profiling

Educate the client about Risk Profiling/the risk return relationship Explaining how a Risk Profile Questionnaire is used Explaining risk tolerance and what it means

5. CLOSING

a. Professional Close

Explaining next steps & agreeing on follow up action

Other assessment instructions:

You will be assessed on:

• Having a clear purpose to the meeting

• Using effective communication skills by encouraging client/s to express their needs

• Providing relevant information:

Uncover the clients’ issues and goals to gain an understanding of why they need your professional

advice

informing the client of the financial services process and services (eg ‘6 steps’)

explaining your role & the services of your organisation (eg broad areas covered by financial planning)

explaining how you can help the client with your expertise

obtaining & recording relevant information on client’s existing financial situation & goals & objectives

• Coming prepared for the meeting:

having relevant documents, forms, brochures; paper & pen ready

providing relevant documents

• Acting professionally:

acting ethically & within appropriate policies, procedures & standards

ensuring personal presentation is professional & appropriate

Professional dress code

using clear & professional language & expression



The criteria for marking this role play assessment are given below: Student Name:

Observers name:

Group members:

Date of Assessment: Total Duration:

Location of Assessment:

SCORE: /60 Weighting: /20% GRADE:

1.ENGAGE (Max. 18 marks in this section) Identified Score

a. Client introduction

(Max. 1 mark)

Introduce yourself to the client in a professional manner

Notes

b. Build rapport

(Max. 4 marks)

1. Make the client feel comfortable (1 mark)

2. Reduce tension (1 mark)

3. Build rapport on areas of common ground (JIFFS – at least 2) (2 marks)

Notes

c. Client’s reason for the meeting

(Max. 4 marks)

1. Uncover the clients’ issues (at least 2) (2 marks)

2. Gained an understanding of why they need your professional advice (2 marks)

Notes

d. Agree on Agenda

(Max. 2 marks)

1. Demonstrated a clear purpose of the meeting to client (1 mark)

2. Provided and explained a meeting agenda to the client (1 mark)

Notes

e. Contextualise meeting (FP process)

(Max. 7 marks)

1. Informed the client of the financial services process and services (ALL ‘6 steps’ explained clearly) – (6 marks)

2. Visual aid used or drawn when explaining (1 mark)

Notes



2. PRESENT FSG (Max. 10 marks in this section) Identified Score

(Max. 10 marks)

1. Explained your role & the services of your organisation (All sections explained clearly) (7 marks)

2. FSG used in presentation (2 marks) 3. Client instructed to sign off acknowledgement (1

mark)

Notes

3. COLLECT CLIENT INFORMATION (Max. 7 marks in this section)

a. Uncover client needs and wants

(Max. 4 marks)

1. Student used effective communication (listening skills) (2 marks)

2. Encouraged client/s to express their needs by asking clear probing questions (2 marks)

Notes

b. Get agreement to proceed to FNA

(Max. 3 marks)

1. Explained what is an FNA & it’s importance (2 marks)

2. Received clients agreement that they want to proceed to completing the FNA (1 mark)

Notes

4. EXPLORE (Max. 10 marks in this section)

a. Complete the FNA

(Max. 5 marks)

1. Student explained how you can help the client with their expertise (1mark)

2. Obtained & recorded relevant information on client’s existing financial situation, SMART goals & objectives (related to at least 1 goal explained in 1 c) (4 marks)

Notes

b. Risk profiling

(Max. 5 marks)

1. Educated the client about Risk Profiling (2 marks)

2. Explained how a Risk Profile Questionnaire is used (2 marks)

3. Explaining risk tolerance and what it means (1 mark)

Notes



5. CLOSE MEETING (Max. 5 marks in this section)

Summarise meeting (max. 0.5 mark)

Restate min. 1 SMART goal (max. 2 mark)

Adviser to inform the clients clearly in relation to the next step (max. 1 mark)

Set next meeting date and time (max. 1 mark)

Invite client to contact you if they have any queries or their situation changes (0.5 mark)

Marks Awarded for section (Max. 5 marks in total)

Notes

6. General Communication Assessment (Max. 10 marks in this section – 1

mark each) Identified Mark

Encourage questions by the client as you go through the plan

Dressed professionally

Active listening skills demonstrated throughout the meeting

Appropriate use of body language

Maintenance of rapport through interview

Appropriate use of language

Clear and unambiguous explanations communicated

Ability to heighten the clients emotional awareness of their situation

Planner was able to deal with client objections confidently

Planner able to ‘close’ the interview

Marks Awarded for section (Max. 10 marks - 1 mark each)

Overall Feedback:

TOTAL (Max. 60 marks awarded)



Grade Marking Criteria

High Distinction 85 – 100% Uses articulate and sophisticated text based modes of expression to communicate efficiently

and effectively.

Sophisticated theory, skills and knowledge of research methodology are applied

constructively and effectively.

Analyses and synthesises theory, skills and knowledge and uses outcomes to realise a

creative and original response to the case study.

Contributes ideas confidently, organises and facilitates the work of self.

Distinction 75 – 84% Theory, skills and knowledge of research methodology are applied analytically and

effectively.

Analyses theory and knowledge and applies analysis to the proposition of a range of

innovative solutions in response to the case study.

Observes and records work activities effectively and uses reflection on work tasks performed

to refine own methodology.

Credit 65 – 74% Theory, skills and knowledge of research methodology are applied effectively and efficiently.

Applies and interprets theory, skills and knowledge effectively.

Proposes innovative solutions in response to the case study.

Pass 50 – 64% Theory, skills and knowledge of research methodology are applied to a satisfactory level.

Applies sustainable theory, skills and knowledge to development of solutions in response to

the case study.

Constructs written work clearly and logically.

Fail <50% Theory, skills and knowledge of research methodology are not understood or applied.

The response to the case study is superficial, inadequate or incomplete.

Student unable to take direction and/or respond to critical feedback.

Acknowledgement: The development of marking criteria is adapted from guidelines by Prof. Richard J. Murnane, Harvard Graduate School of Education.



Assessment 2: Individual Case Study – Strategy Report Weighting 30%

Learning Outcomes assessed: 2, 4

Graduate Attributes: 1, 5, 7 Due: Week 10

For this assessment, you are required to extract data from a data collection instrument and analyse the

information provided. You are then required to undertake research and analysis on a client scenario, then

recommend suitable strategies and/or product/s appropriate to the needs of your client and write a

report outlining your analysis and recommendations. This comprises of two areas of advice, one is

Financial Planning – Budgeting and debt management. The format of the report must be in accordance with

the ASIC requirements (source: www.asic.gov.au) and the example will provided to students by the teacher.

Written submissions should be a minimum of 1,200 and maximum of 2,000 words in length, professionally

presented according to the ASIC requirements. Assignments must be typed in a legible font at least 12 point in

size, Calibri, with numbered pages, printed single-sided on A4 paper (with at least a 2cm margin) and double

spacing.

A Strategy Report template to be used will be provided on Moodle.

All submissions must comply with the requirements listed in the Course Handbook.

Refer to the next page for the specific requirements of this assessment task.

http://www.asic.gov.au/

http://courses.highered.tafensw.edu.au/



Assessment 2: Case study and Requirements

Case Study: Andrew Ferrell

Introduction

You are a financial adviser for “St George Financial Planning Pty Ltd” and the following information is an extract

of data you gathered as part of the Financial Needs Analysis during the initial client meeting with Andrew Ferrell.

The information below is used to formulate an appropriate analysis of Andrew’s needs.

Your Client

The client for this case study is Andrew Ferrell. His concerns are about not having adequate savings and available funds for a deposit on his first home. Read Andrew’s details below. Financial Needs Analysis Details

Personal Details

Name Andrew Ferrell

Gender Male

Nationality Australian

Date of Birth 30/03/1985

Marital Status Single

Address 35/190 – 196 Jubilee St, Fairy Meadow, NSW, 2217

Preferred contact 0412557226

Email [email protected]

Private Health Cover Yes

Employment Details

Employer Wollongong Council

Work Status Fulltime

Occupation Town Planner

Income $95,000 p.a. (gross)

Dependants

Name Date of Birth Age (next birthday)

NO N/A N/A



Assets

Description Owner Current Value

Home Contents (replacement value)

Andrew $40,000

Car Andrew $25,000

Savings Account Andrew $ 1,000

Share Portfolio Andrew $ 5,000

Liabilities

Description Owner Current Value

Car Loan Andrew $17,000

Finance Card Andrew $10,000

Credit Card debt Andrew $ 8,000

Loan Details

Type Car Loan Finance Loan Credit Card

Remaining balance $17,000 $10,000 $8,000

Lender St George GE Virgin

Interest Rate 9.49% (fixed) 19.01% (variable) 16.49% (variable)

Remaining Term 4yrs 1.5yrs After 55day interest free period

Repayment Amount $600 monthly $660 monthly minimum



Superannuation

Fund Owner Current Value Other Details

Local Government Super – Conservative

Andrew $50,000 Life & TPD cover of $100,000

Perpetual WealthFocus Super - Balanced

Andrew $40,000 Life & TPD cover of $25,000

Insurance

Description Owner Benefit Value Provider

Contents Andrew $20,000 GIO

Comprehensive Car Andrew $20,000 GIO

Life and Total Permanent Disability

As stated above

Income

Name Andrew

Salary (gross) $95,000 p.a.

Bank interest $200

Dividends (reinvested) $950 Fully Franked

Risk Profile

Name Risk Tolerance

Andrew Growth



Expenses client gave us

Expense Amount pa ($)

Rent 6,000

Electricity/Water/Gas 1,130

Telephone/Mobile/Internet 1,250

Insurance – home & contents 800

Insurance – car 1,000

Private Health Insurance 1,000

Petrol/maintenance 4,500

Car registration 1,000

Food 5,200

Grooming 300

Credit card 15,000

Other loans 15,120

Medical/Dental 1,000

Entertainment/Dinners 2,500

Clubs/Prof. Memberships 1,300

Holidays 3,000

TOTAL $53,900



Client Objectives What the client hopes to achieve

Following discussion with Andrew, goals to be addressed are as follows:

1. Maintain a net income of $60,000 per annum.

2. Establish and maintain a cash reserve of $10,000.

3. Reduce debt as soon as possible.

4. Review his budget, as he seems to think he is spending too much.

5. Save for a deposit on a first home in the next 5 years.

6. Replace car in five years.

7. Maintain his holiday allowance of $3,000 p.a.

8. Boost his superannuation contributions in order to pay less tax into his employer superannuation fund

(Local Government Super).

9. Ensure he has adequate Life and Total Permanent Disability insurance within the current

superannuation funds.

Assumptions:

Andrew’s income increases by 4% per annum. The 2014/15 tax rates to be used. Expenses are non-deductible with the exception of his Professional Subscriptions All expenses to be adjusted to inflation. He is exempt from the Medicare levy surcharge.



Part A questions form the workings required to complete Part B, The Strategy Report. Please submit all workings

and your answers to all Questions in Part A in the Appendix of the Strategy Report (Part B).

Part A

1. From the first meeting with your client, was there any missing information that you would need to clarify. Please state the following:

A. What information is missing or what would you like more detail on? B. How would you communicate the collection of this information? and C. Where would you document your questions and the client’s reply of this additional information

required? 2. What issues do you believe you should discuss with your client? Include other goals or risks you may

identify, if they are not listed in the case study. 3. Identify, set and prioritise your client’s S.M.A.R.T goals and objectives. Include the goals you have

identified and list whether they are short, medium or long term goals. 4. What goals are there that you may identify (or the client has stated) that you may suggest the client

address at a later stage (when their more urgent goals are met)? 5. What risks are there to Andrew not meeting his goals? Think about personal risks, legislative risks,

market cycle risks. 6. Calculate Andrew’s annual after-tax income (include Medicare levy). Use the 2017/18 tax rates. 7. a. Prepare a Cash Flow Analysis and Net worth Statement for your client to determine what the current

income surplus/deficit is and net worth position.

b. Assume from your discussions with Andrew that his credit card expenditure is largely discretionary

(clothes, coffees, bought lunches etc) and that he is prepared to follow a budget limiting these

expenses. Redo Andrew’s Cash Flow Analysis planning for him to stick to a credit card spend of $700

per month, determining a new surplus/deficit amount.

8. Using the Life Insurance Calculator (on Moodle), how much Life Insurance (Life, TPD and Income Protection) does Andrew ideally need?

9. What suitable outcomes (strategies) can you match to the goals you have identified and prioritised, utilising any surplus identified?

10. Explain how you would deal with Andrew’s superannuation?



Part B

1. List what strategies you would advise your clients to write in your Strategy Paper. Include your recommendations on two areas of advise, ONE MUST be budgeting and debt management.

2. Research products (where applicable) from your St George Financial Planning Approved Product List (overleaf) and explain why they would achieve the strategy. Show your analysis.

3. Construct a Strategy Report using the template provided (on Moodle) and Strategy Report Checklist (on next page) and the answers from Part A with your final recommendations following ASIC guidelines and learned content.

Notes:

Show assumptions; use an Excel spread sheet for calculations and relevant disclaimers in your Strategy Report. Follow the ASIC guidelines and refer to the sample Statement of Advice documents in the prescribed text.

While answering requirements involving calculations, you are expected to describe your approach and explain your calculations. If assumptions are made, these assumptions must be clearly stated.

In order to answer the requirements of the Case Study, you may need to access resources other than the study material and prescribed text.

All sources used in your assignment must be clearly referenced both in-text and at the end.

St George Financial Planning Approved Product List (APL):

BankWest Fixed term deposit

BT Active Balanced

FirstChoice Model Portfolio Platform HTM Wilson

ING Balanced

Macquarie Cash Management Trust

Macquarie Defensive Fund

Perpetual Conservative Growth

Perpetual International Share Fund

One Path Income Protection

Colonial First Choice Superannuation Platform

(This Approved Product List is subject to change and additional products outside this list are to be

approved by the teacher first)



Assessment 2 – Strategy Paper / SOA Checklist Guide is given below:

Scaled Statement of Advice (and as per template/s and samples provided)

Content Done (tick) Cover letter & page

Table of contents

Scope of advice (include what the advice doesn’t cover)

Summary of Advice (Executive Summary)

SMART Goals and Objectives

Current Situation: personal and financial circumstances of the clients

Risk Profile of clients

Cash flow, Net Worth, Investment strategy, Life Insurance Needs Analysis & product research report, Retirement Needs, Centrelink (as applicable)

Comparison of product (include consequences of replacing current product with recommended)

Areas of advice may include: Budgeting & Savings Plan, Debt Management, Life Insurance (MUST), Insurance inside Superannuation, Managed Investments, Risk profile match with investment portfolio

Sub headings and explanations under each strategy area – a. What is it - structure & features of service/investment vehicle

b. Advantages & Drawbacks (at least 2 of each)

d. How it works - SWOT, Cash flow, Investment strategy Analysis, Insurance & Retirement Needs Analysis (if applicable) with explanation/s

e. Comparison of product (include consequences of replacing current

product with recommended) – if applicable

f. Why – ‘Best Interest Duty’ (at least 3 reasons why this advice) g. Outcome – Overall outcome following each strategy to goal/s

Cash flow projection of base year plus 5 years

Fees (include fee for services, product fees, AR remuneration, bonuses & insurance commissions)

Next Steps (Implementation documents for each recommendation)

Any warnings, disclosures & disclaimers

Authority to proceed



STUDENT NAME <HERE> SCORE /100 WEIGHTING /30 GRADE:

STRATEGY REPORT RUBRIC

Fail Pass Credit Distinction High Distinction Score

0 6 7.8 9 12 /12

Content Knowledge & Research 12 marks

Very little original content OR Any cut and paste work OR Does not cover the topic

sufficiently AND Insufficient appropriate

sources of information

Over reliance of quotations, with little explanation or coherence AND

Insufficient support from references OR

Missing key information OR All facts with little structure

or creativity AND Core texts and minimal

appropriate sources have been referred to

A passing understanding of content AND

References all graphic sourced from elsewhere OR

Not all ideas are fully developed AND

Have to read a few times to understand AND

Evidence of reading beyond the core texts and minimum number of appropriate sources

A good knowledge of content May use original graphics Clearly defined ideas Easy to understand what the

author is telling you Research of relevant current

and contemporary academic sources is evident in addition to core texts and minimum number of appropriate sources

ALL Inclusive

Mastery of content Tasteful use of originally

generated graphics to make the ideas clear

Key facts and ideas are ‘obvious’ to the reader

Extensive research of relevant current academic sources is evident in addition to core texts and minimum number of appropriate sources

ALL Inclusive

0 7.5 9.75 11.25 15 /15

Analysis 15 marks

Response is not correct Response is descriptive rather than analytical AND At least 50% of analysis provided and correct.

Response is partially descriptive but an analytical approach has been attempted AND at least 65% of analysis provided and correct.

Displays a critical and analytical approach AND at least 75% of analysis provided and correct.

Displays an original approach to the question AND at least 85% of analysis provided and correct.

0 7.5 9.75 11.25 15 /15

Calculations and/or graphs 15 marks

More than half of the calculations or graphical tasks are incorrect and/or not adequately completed

Calculations or graphical tasks are incomplete or contain some errors but more than half that are required are correct AND At least 50% of calculations provided and correct.

At least 2/3 of all required calculations or graphical tasks are correct and complete AND At least 65% of calculations provided and correct.

At least 3/4 of all required calculations or graphical tasks are correct and complete AND At least 75% of calculations provided and correct.

All of the required calculations or graphical tasks are correct and complete AND At least 85% of calculations provided and correct.

0 7.5 9.75 11.25 15 /15

Recommendations (Strategy &/or Product) 15 marks

Response is superficial, inadequate or incomplete

Two advise areas are identified but there is limited elaboration of the issues

Two advise areas are identified and at least 65% of the recommendations are provided and appropriate to issues identified & elaborated



0 7.5 9.75 11.25 15 /15



Structure 15 marks

Structure is not congruent with report requirements

Structure contains all of the relevant sections with clear headings but supporting paragraphs are vague

Structure contains all of the relevant sections with clear headings some supporting paragraphs link with clear executive summary, introduction and conclusion.

Structure contains all of the relevant sections with clear headings and well linked supporting paragraphs. Very good executive summary, introduction and conclusion

Well-structured response with supporting paragraphs which link and flow from one to another methodically and is easy to follow with an excellent executive summary, introduction and conclusion.

0 6 7.8 9 12 /12

Language application 12 marks

Mostly written in third person perspective or excessive use of jargon/figurative/colloquial speech or Does not apply simple business language which is easily read by any age group/level of knowledge

Some sentence structures requiring improvement or some presence of figurative/colloquial speech or a couple of references to third person

No sentence structure issues and No presence of jargon/figurative/colloquial speech and Written entirely objectively in first/second person

No sentence structure issues and no presence of jargon/figurative/colloquial speech and Written entirely objectively in first/second person

Excellent use of concise simple language, absent of jargon, figurative speech, colloquialism and Written entirely objectively in first/second person which is easily read by any age group/level of knowledge of the topic

0 5 6.5 7.5 10 /10

Language accuracy 10 marks

Poor grammar, spelling, punctuation or sentence structure - please see your Learner Support Centre for assistance

Some errors in grammar, spelling, and punctuation or some sentence structures requiring improvement

Minimal grammatical spelling or punctuation errors and no sentence structure issues

No grammatical spelling or punctuation errors and no sentence structure issues

Excellent use of language and is concise in response

0 3 3.9 4.5 6 /6

Application of referenced material & documents 6 marks

An inappropriate referencing system applied or referenced material does not support the answer/argument. Response is not relevant to the task

Significant paraphrasing of sourced material but all citations appropriately referenced. Response is descriptive rather than analytical AND At least 50% of supporting documents provided and correct.

Referenced material supports the answer/argument, rather than mere paraphrasing and all citations appropriately referenced. An analytical approach has been attempted AND At least 65% of supporting documents provided and correct.

Some links are made between core texts and contemporary or current issues. All citations appropriately referenced. Displays a critical and analytical approach AND At least 75% of supporting documents provided and correct.

Referenced material is well linked throughout the body of the essay and exceptional skills in the topic area are demonstrated. All citations appropriately referenced. Displays an original approach to the question which demonstrates a critical and analytical approach AND At least 85% of supporting documents provided and correct.



The criteria for marking a report are given below:

Grade Marking Criteria

High Distinction 85 – 100%

A ‘high distinction’ grade may result for any of the following reasons:

Displays an original approach to the question

The question is answered correctly and in full

Calculations have no errors

Extensive research of relevant supporting material

Demonstrates a high level of critical thinking

Overall, demonstrates exceptional skills in the subject area.

Distinction 75 – 84%

A ‘distinction’ grade may result for any of the following reasons:

The question is answered correctly and in full

Calculations have no errors

Displays a critical/analytical approach

A high level of research of relevant supporting material

Very well written and presented

Overall, demonstrates excellent skills in the subject area.

Credit 65 – 74%

A ‘credit’ grade may result for any of the following reasons:

Key issues are identified, and the question is answered satisfactorily

Calculations have minimal errors

A analytical approach has been attempted rather than descriptive

Referenced material supports the answer/argument, rather than mere paraphrasing

A clear structure with good grammar

Overall, demonstrates above-average skills in the subject area.

Pass 50 – 64%

A ‘pass’ grade may result for any of the following reasons:

Main issues are identified

Calculations are incomplete

Work is ‘descriptive’ rather than ‘analytical’

Significant paraphrasing of sourced material

Adequate grammar and structure

Overall, demonstrates sufficient skills to allow progression to higher level studies in the subject area.

Fail <50%

A ‘fail’ grade may result for any of the following reasons:

The response to the question is superficial, inadequate or incomplete

Plagiarism

Calculations are incorrect

Lack of analysis or research

Very poor grammar or structure

Overall, does not demonstrate sufficient skills to allow progression to higher level studies.



Assessment 3: Final Examination Weighting: 50%

Subject Learning Outcomes assessed: 1, 2, 3 , 4

Graduate Attributes: 1, 3, 5, 7 Due: Examination Week

A final examination of three hours duration will be held on the date and at the venue shown as per the

examination timetable.

This is an individual student assessment which will cover topics one to twelve inclusive and is a must pass

event.

The examination will be based on multiple choice questions, short answer questions and problem based

case studies and extended responses. Students will be required to use their knowledge gained during the

semester to identify issues in the problems set and to provide realistic solutions to these problems. These

questions will be drawn from materials covered in both lectures and tutorials.

The examination will be preceded by 10 minutes reading time.

The examination is a closed book examination.

Students may use a non-programmable, no text retrieval, silent only calculator into the examination in

accordance with TAFE policy.

Further information on the examination will be available on your course website during the term and

within your revision lecture.

All examination information must comply with the requirements listed in the Course Handbook.



The criteria for marking an examination are given below:

Grade Marking Criteria – Final Exam

High

Distinction

85 – 100%

A ‘high distinction’ grade may result for any of the following reasons:

All of the main issues are identified including exploration of additional points and the question is answered in full

Displays a deeper understanding of and an awareness of more subtle concepts in addition to an aptitude to consider the topic in a broader context

Displays an original approach to the question

At least 85% of the required calculations or graphical tasks are correct and complete

Excellent use of language and is concise in response

Distinction

75 – 84%

A ‘distinction’ grade may result for any of the following reasons:

All of the main issues are identified and question is answered in full with all issues being elaborated on

Displays a deeper understanding of and awareness of more subtle concepts

Displays a critical and analytical approach

At least 75% of all required calculations or graphical tasks are correct and complete

No grammatical spelling or punctuation errors and no sentence structure issues

Credit

65 – 74%

A ‘credit’ grade may result for any of the following reasons:

All of the main issues are identified and most are elaborated on

Demonstrated a sound understanding of all principles and concepts

Response is partially descriptive but an analytical approach has been attempted

At least 65% of all required calculations or graphical tasks are correct and complete

Minimal grammatical spelling or punctuation errors and no sentence structure issues

Pass

50 – 64%

A ‘pass’ grade may result for any of the following reasons:

Most of the main issues are identified but there is limited elaboration of the issues

Demonstrated enough understanding of some principles and concepts to answer question

Response is descriptive rather than analytical

Calculations or graphical tasks are incomplete or contain some errors but more than 50% are required are correct

Some errors in grammar, spelling, and punctuation or some sentence structures requiring improvement

Fail

<50%

A ‘fail’ grade may result for any of the following reasons:

Response is superficial, inadequate or incomplete

Demonstrated knowledge is incorrect and technical understanding is lacking in several areas of the topic.

Response is not correct

More than 50% of the calculations or graphical tasks are incorrect and/or not adequately completed

Poor grammar, spelling, punctuation or sentence structure

Acknowledgement: The development of marking criteria is adapted from guidelines by Prof. Richard J. Murnane, Harvard Graduate School of Education.



6.2. Subject grading

Grades for individual assessment events and the subject as a whole are awarded as follows.

High Distinction: marks ranging from 85 to 100%

Where the student has demonstrated highly original, relevant and sophisticated applications of

research, appraisal, enquiry and evaluation techniques resulting in innovative concepts that challenge

existing conventions in the field of study.

Distinction: marks ranging from 75 to < 85%

Where the student has demonstrated a high level of performance indicating depth and breadth in

research, appraisal, enquiry and evaluation with broad application of knowledge of theoretical

concepts, and applied analytical thought.

Credit: marks ranging from 65 to < 75%

Where the student has undertaken an innovative and creative interpretation of assessment briefs, and

has provided evidence of extended research and inquiry applied to assessment tasks.

Pass: marks ranging from 50 to < 65%

Where the student has met all requirements of assessment briefs to a satisfactory level.

Fail: marks under 50%

Where the student has not demonstrated satisfactory performance in assessment tasks or has failed to

meet subject requirements.

Fail: Failure of a must pass event

Where the student has an overall mark for subject at a passing level, but has not demonstrated

satisfactory performance in an event deemed a must pass event, resulting in failure of the subject as a

whole. ‘Fail’ is reported for the subject on the Transcript of Academic Record.

6.3 Submission requirements

Your teacher will advise you of the format required for each assessment task and the format for submission, which may be electronically.

Each assessment task must include a cover sheet, with a signed declaration indicating that the work is your own work and has not been previously submitted.

Additional assessment information, including provisions for special circumstances and misadventure, requests for an extension of the assessment due date or to resubmit an assessment or sit an exam at a later date, can be found in the TAFE NSW Higher Education Assessment policy and procedures which you can download at:

www.tafensw.edu.au/degrees

http://www.tafensw.edu.au/degrees



6.4 Student conduct and academic standards

TAFE NSW Higher Education encourages high standards of professional behaviour and academic conduct. You must conduct all work associated with this course in a manner that is environmentally, socially and culturally responsible, so as not to cause harm or disrespect to the environment, people or their values and beliefs.

You shall hold confidential all information about any specific organisation and their business or business activities, which may be divulged in the process of a work placement, lecture or tutorial, including lectures given by industry guest lecturers.

It is the policy of TAFE NSW Higher Education that respect and acknowledgement is given to intellectual property created by academics, writers, practitioners and other students whose work is cited in your submissions, or used to illustrate them. It is therefore important to use the Harvard citation system and include a bibliography with every submission, to acknowledge the intellectual property of others that you have used to support your own proposals or position. Penalties apply for plagiarism and other forms of academic misconduct.

Further information about academic conduct can be found in the TAFE NSW Higher Education Academic Integrity and honesty policy and procedures, which you can download at:

www.tafensw.edu.au/degrees

6.5. Approaches to teaching and learning

6.5.1. Methods of teaching and learning

Teaching methods for this subject will include:

workshops

Learning activities will include:

independent and/or group research activities

role-plays

group discussions

case studies and situational analysis

team projects

online forums

Resources will include:

online learning materials

websites

readings

textbooks

videos

podcasts

http://www.tafensw.edu.au/degrees



You will need:

a computer for research, online communication and collaboration, to create documents and to complete assessment requirements

to purchase the prescribed textbook either in hard copy or as an e-book.

6.5.2. Expected attendance

In addition to attending workshops and other learning activities, you are expected to undertake self-directed private study including reading, practical application of theoretical knowledge, and completion of assessment tasks.

If you are unable to attend class-based learning activities, you should notify the teacher and/or tutor and access the relevant learning materials to make up the missed class through private study.

If you are unable to attend a class during which an assessment activity is scheduled, you must provide a medical certificate as evidence of your inability to attend class. Your teacher will advise you of alternative assessment requirements.

6.5.3. Supplementary learning activities

You are expected to:

complete any pre-reading specified prior to attending classes

access resources on the subject Moodle and elsewhere as advised by the subject teacher

complete all tutorial questions prior to the next class when directed.

6.5.4. Student resource requirements

Students will need to purchase the subject text:

Taylor, S. and Juchau, R., (2017), Financial Planning in Australia: Advice and Wealth Management, 8th Edition, LexisNexis Butterworths

Your teacher will advise you of any additional equipment or resources you need for the completion of

this subject.



6.6 Graduate attributes

As a result of successfully completing this subject, you will have developed a number of graduate

attributes that will enhance your employability and contribution to the Australian workforce. The table

below shows the relationship between graduate attributes and subject learning outcomes.

Course Learning Goals relevant to this subject:

Course Learning Outcomes relevant to this subject:

CLG 1: Graduates of the program will demonstrate a broad knowledge of the financial services industry and an in-depth theoretical and practical knowledge, underpinning financial concepts, current industry products, practices and legal and regulatory requirements, to contribute positively to a work environment.

1: Define and describe the process and the practices of the financial services industry.

CLG 3: Graduates of the program will communicate effectively using a range of high level written, oral and visual communication skills to enable them to clearly and confidently convey knowledge, reasoning and decisions.

3: Apply professional written, oral and presentation communication conventions.

CLG 4: Graduates of the program will utilise interpersonal skills to work collaboratively and flexibly both individually and in teams, demonstrating capacity for leadership. They will be persuasive and effective at resolving conflict.

4: Collaborate positively in a team within a financial context.

CLG 5: Graduates of the program will display initiative and exercise judgement in planning, problem solving and decision making, including the ability to reflect critically on ideas and issues, evaluate own work and the work of others, and effectively adapt to change.

5: Use initiative in identifying problems to aid decision making.

CLG 7: Graduates of the program will employ mandatory standards of sustainable and ethical practice in their work, act with integrity in their dealings with others reflecting principled regard to social, economic, regulatory, local and global issues.

7: Apply ethical practice and integrity in dealings with stakeholders.

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