Unit of competency Outline
Date retreived
23/07/2026 2:47 PM AWST
23/07/2026 2:47 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 complex and innovative financial planning strategies
Develop complex and innovative financial planning strategies
Unit of competency
National Code
FNSFPL604A
FNSFPL604A
State Code
D4150
D4150
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
31/05/2011
Field of Education
081105 - Investment And Securities
Original Release Date
31/05/2011
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to determine and prepare a complex or innovative financial plan or plans which are for commercial relationship reasons identified as requiring development to a higher than normal standard. It encompasses establishing plan objectives and scope, and developing strategic assumptions and innovative or complex financial strategies.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 and the current client situation analysed to determine opportunities and constraints
- 1.2. Special features of client situation are reviewed such as high asset, income or expenditure requirements, complex taxation and or legal issues, or complex estate planning issues
- 1.3. Desired financial resource and market parameters are identified and plan objectives are developed for asset growth, income, risk, estate planning and any other objectives developed in consultation with client
- 1.4. Taxation or estate objectives are identified and discussed with the client
2. Develop strategic assumptions
- 2.1. Client related and economic key assumptions are developed and tested
- 2.2. Legislative and regulatory assumptions, including taxation assumptions are developed and tested
- 2.3. Clarifications are sought from client or other financial services professionals as required and strategic assumptions documented for client review
3. Develop innovative or complex financial strategy
- 3.1. Initial strategic options are developed based on strategic assumptions and client specifications
- 3.2. Strategic options are analysed, modelled and prioritised with inappropriate strategic options rejected
- 3.3. Supporting arguments for each strategic option are developed and included in a draft overall strategy
- 3.4. Where required, strategy is integrated into taxation, legal, estate or insurance and asset strategies being developed for client by other professional advisers in order for the financial plan to achieve maximum synergy and benefit for the client
- 3.5. Strategy is reviewed for best practice compliance and risk management
- 3.6. Fees and charges analysis is included for the strategy options
- 3.7. Best practice ethical behaviour is maintained including full disclosure of any potential conflicts of interest and areas where advice should be sought from other professionals.
4. Review and settle draft strategy and options with client
- 4.1. Strategic options for review with the client and a suitable mode of presentation are selected
- 4.2. Each strategic option is fully reviewed with client including positives, negatives and risks for each option
- 4.3. Representative ensures that implication of each option, including regulatory and legal implications for the client's situation, needs and goals is understood
- 4.4. Representative ensures that client understands where additional professional advice is needed
- 4.5. Broad agreement on strategies is established with client including resolution of any concerns and issues raised by the client
5. Develop preliminary financial plan for client
- 5.1. A full investigation of products and options is conducted including non-standard and/or innovative products and products and options selected to meet agreed strategy
- 5.2. Complex or innovative products are specifically identified and explanatory material developed or obtained
- 5.3. Requirements for cash flow, liquidity, capital preservation or estate planning are incorporated
- 5.4. Recommendations for financial asset allocation structure is developed, including where required, provision for equities, trusts, partnerships, allocated pensions, and superannuation
- 5.5. Recommendations for changes to income and taxation arrangements, taxation consequences and estate planning issues relating to the client strategy are developed including referral advice to accountants or lawyers as appropriate
- 5.6. Recommendations on risk management strategies and products are developed and incorporated into the plan
- 5.7. Description of anticipated fees and charges are incorporated into the plan
- 5.8. Information on internal and external complaints resolution procedures is incorporated into the preliminary plan
- 5.9. Preliminary financial plan is documented according to organisation guidelines and procedures
6. Ensure compliance of financial plan with regulatory and organisation requirements
- 6.1. Preliminary financial plan is checked to ensure that the role of the representative or adviser is properly documented
- 6.2. Preliminary financial plan is checked to ensure compliance with relevant Acts, legislation and regulatory guidelines
- 6.3. Preliminary financial plan is assessed for its ability to successfully achieve stated objectives
- 6.4. Preliminary financial plan is checked to ensure that it complies with ethical and regulatory requirements
7. Produce client financial plan
- 7.1. Financial plan is produced in accordance with organisation presentation requirements
- 7.2. Supporting organisation, product explanatory documentation and 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.
Appropriate strategic options and solutions may include:
flexibility
investigation and assessment of costs
liquidity
products available to the adviser
return on investment
safety
tax effectiveness and investment spread of relevant
volatility of expected income or capital growth.
Risk assessment may include:
asset allocation and investment spread
borrowing risk or gearing
economic
institutional risk
market and sector risks including:
economic cycle
fixed interest
property
stock market
risk factors and return expectations of the client
specific product risk
volatility of income and capital.
Products include, but are not limited to:
cash deposits
derivatives
direct investments
equities
futures
insurance products
managed investments
superannuation
trusts.
Legislation and regulatory guidelines 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.
Ethical and regulatory requirements may include:
disclosure of any conflicts of interest
full disclosure of remuneration and fees and any other matter that may influence the representative's recommendations
guarantees of confidentiality
integrity checks
preparation in utmost good faith
relevant industry codes of conduct and practice.
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.
Appropriate strategic options and solutions may include:
flexibility
investigation and assessment of costs
liquidity
products available to the adviser
return on investment
safety
tax effectiveness and investment spread of relevant
volatility of expected income or capital growth.
Risk assessment may include:
asset allocation and investment spread
borrowing risk or gearing
economic
institutional risk
market and sector risks including:
economic cycle
fixed interest
property
stock market
risk factors and return expectations of the client
specific product risk
volatility of income and capital.
Products include, but are not limited to:
cash deposits
derivatives
direct investments
equities
futures
insurance products
managed investments
superannuation
trusts.
Legislation and regulatory guidelines 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.
Ethical and regulatory requirements may include:
disclosure of any conflicts of interest
full disclosure of remuneration and fees and any other matter that may influence the representative's recommendations
guarantees of confidentiality
integrity checks
preparation in utmost good faith
relevant industry codes of conduct and practice.
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:
develop detailed financial plans designed to maximise the client's outcomes and reach client objectives which incorporate elements that have arisen from research
develop plans which address complex needs and issues and describe key assumptions on which the plan is based
analyse strategic options and make justified recommendations
test and/or make appropriate checks on the proposed plan for its integrity and compliance
apply in-depth knowledge of the financial planning industry, industry regulations and codes of practice, financial products, financial markets and investment characteristics and the roles of other associated financial advisers
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
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills
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:
develop detailed financial plans designed to maximise the client's outcomes and reach client objectives which incorporate elements that have arisen from research
develop plans which address complex needs and issues and describe key assumptions on which the plan is based
analyse strategic options and make justified recommendations
test and/or make appropriate checks on the proposed plan for its integrity and compliance
apply in-depth knowledge of the financial planning industry, industry regulations and codes of practice, financial products, financial markets and investment characteristics and the roles of other associated financial advisers
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
observing processes and procedures in workplaces or role plays
verbal or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations/scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR34 | FNSFPL604 | Develop complex and innovative financial planning strategies | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S737 | FNS60410 | Advanced Diploma of Financial Planning | Qualification |