Reference no: EM132337644

Part - 1:

Conduct Complex Financial Planning Research

Task Assessments

1 Evaluate client's current situation & identify issues
2 Identify research requirements and parameters
3 Extract and analyse information
4 Summarise and present results of research

Objective The objective of this first assessment is to develop a Research Report for the practical client situation described in the case study assigned to you.

Scope To achieve this objective, you will need to:
• Evaluate client's current situation and identify issues,
• Identify research requirements and parameters,
• Extract and analyse information, and
• Summarise and present results of research.

The assessment tasks in this assessment will allow you to demonstrate your knowledge and skills in these elements

Assessment Task 1

1.0 Evaluate the clients current situation and identify the issues

The first assessment involves the evaluation of the case study allocated to you, to assess the client's current situation and identify the issues.

This requires that you:
• undertake an analysis of the integrity of information provided by the client,
• identify and quantify the client objectives and expectations and test them for viability, and
• establish the basis for strategy development based on confirmed objectives.
For this activity, refer to the case study and complete your answers to these assessment tasks in the space provided in the following pages.

1.1 (a) Analysis of integrity of client information

From the scenario in your case study, list in the table below what documents you would review to analyse the integrity of the information provided by the client.

Enter your answers in the space provided below.

Cashflow Management
1. Income
$ K

$ K i) Wife's income: 
ii) Husband's income: 
2. Tax

i) Wife's annual tax: 
ii) Husband's tax:

3. Expenses
$ K

$K i) Living expenses/mortgage: 
ii) Discretionary expenses (holidays etc): 

Wealth Creation

4. Super

$ K

$ K
i) Wife's superannuation: 
ii) Husband's superannuation:

5. Investments

($ K)
i) Cash Investments Held:

6. Debt Reduction

($ K)

($K)
i) Mortgage: 
ii) Credit Cards: 

Wealth Protection

7. Personal Insurance
$ K

$ K
i) Wife's current Life/TPD insurance :
ii) Husband's current Life/TPD insurance :

8. Estate Planning

yes / no

yes / no i) Wife's estate planning:
ii) Husband's estate planning:

1.1 (b) Analysis of integrity of client information

Use the taxcalc website and a currenttax rate to calculate Dennis and Donna's:
• Investment income
• Superannuation contributions, and
• Surplus income after tax.

Use the Financial Planning Research spreadsheet provided to assist you in your calculations and then enter your results in the table below. You should use the copy and paste function to copy the calculations from the spreadsheet in to the tables below.

As your clients have private health insurance, the Medicare Levy surcharge does not apply. Also, assume that investments are jointly held so that 50% of the income is earned by each.

Investment Income
Superannuation Contributions (current situation)
Surplus Income (current situation)

1.2 Identify client objectives and expectations
From the scenario in your case study,
a) write down one or more specific financial objectives and expectations for the generic needs provided,
b) quantify the objective by expressing the amount in today's dollars (PV- Present Value), and
c) Describe how you would verify each objective.

Cashflow Management
1. Income
2. Tax minimisation

3. Expenses
Wealth Creation
4. Superannuation

5. Investment Planning

6. Debt reduction 
Wealth Protection
7. Personal Insurance

8. Estate Planning 

1.3 a) Develop strategic options

From the scenario in your case study, establish the basis for strategy development by identifying the strategic options for each generic need.
You should develop a minimum of three options for each generic need which would act as a hypothesis for you to investigate further.

Cashflow Management
i) Income 
ii) Tax minimisation

iii) Expenses 

Wealth Creation
i) Superann-uation

ii) Investment Planning

iii) Debt Reduction

Wealth Protection
i) Personal Insurance

ii) Estate Planning

1.3 b) Develop strategic options, continued

(b) From the various options that you have given in 1.3 (a), please list four (4) options / alternatives that you would want to present to the clients to get their approval before conducting detailed research.

For example, you might start this discussion to confirm objectives with "I understand that you have a preference to do X, but if I could show you a significant advantage in doing Y, would you consider it?"

Assessment Task 2

2.0 Identify research requirements and parameters

The next step in the Financial Service Advice Process includes the identification of research requirements and parameters.

This requires that:
• Aims and objectives of research including strategy, product and performance parameters are established against client requirements and expectations with all issues identified,
• Intended use of the research information is clearly established
• A wide range of relevant internal and external information resources required for the research are identified and accessed,
• Information requirements not met by regular sources are identified and strategies developed to access them legitimately, and
• Timeframes are established and requests for information prioritised to ensure milestones are met.

Complete your answers to this assessment task in the space in the table provided:

The first column you are required to fill in is (b) - What are some research questions that you could ask to determine the clients' aims and objectives?

You are required to provide 1 or 2 additional Research Questions for each generic need, but no calculations or sums are required at this stage.

The second column you are required to fill in is (c) - Where would you find this information?

You are required to provide some examples of websites, on-line calculators type of spreadsheet etc. you could utilise to answer the questions in part (b).

The final column (d) - Priority requires you to allocate a level of importance to each generic need.

Use the numbers 1 - 3 with 1 being the highest priority.

An example of a research question is provided in the first row for each generic need.

Cashflow Management
Wealth Creation
Wealth Protection

Assessment Task 3

Extract and analyse information

The next step in the Financial Service Advice Process includes the extraction and analysis of information according to research requirements and parameters.

This requires that:
• Data extraction criteria are established that are relevant to intended use and client requirements and do not unduly limit the scope of research,
• Trends are identified to provide meaningful information on performance of possible strategies, products and markets,
• Financial products are analysed within appropriate timeframes to ensure currency of decision making and comprehensive risk assessment is made of products identified through the research,
• Obtained information is prioritised according to client requirements and expectations, and
• Issues that require specialist research or advice are identified and appropriate advice obtained.
Complete your answers to this assessment task in the spaces provided in the following pages.

Assessment Task 3.1

3.1 Research tax minimisation

Referencing theTax Calculator research the four (4) different tax minimisation options specified below and calculate the potential annual tax that could be saved by your clients.

Use the Financial Planning Research spread sheet provided to assist you in your calculations and then enter your results in the table below.

You should use the copy and past function to copy the calculations from the spreadsheet in to the tables below.
Complete your answers in the space provided below.

Tax Minimisation Options
1. How much tax is currently paid on the cash and fixed interest investments?
2. If the cash and fixed interest investments were transferred from a joint ownership to Dennis' name how much tax would be saved?
3. How much would Donna save in tax if she salary sacrificed up to the concessional contribution cap?

4. How much extra Low Income Tax Offset would Dennis be entitled to, if he salary sacrificed to meet the 19% marginal tax rate?
(Note: Do not include investment income)

Assessment Task 3.2

3.2 Research surplus income

Using the previousTax Calculator for the currentfinancial year, Calculate the tax payable and surplus income available if the client were to implement the tax minimization options identified in the previous assessment task.

Do not include the interest income in this calculation and complete your answers in the space provided below.
In your summary, consider the changes to total tax payable, surplus income and increased superannuation contributions.

Assessment Task 3.3

3.3 Research super contributions

Calculate the NET impact of the contemplated salary sacrifice strategies on annual superannuation savings (after tax).
You should refer to the Key super rates and thresholds on the ATO website to identify the current contribution tax and cap on contributions.
In your summary, consider the impact of the proposed changes in annual contributions on accumulated superannuation, contribution tax paid by the funds in relation to the change in surplus income.

Assessment Task 3.4

Research super target

Using the Super Simulator on the AMP website, calculate both Donna and Dennis':
• Projected savings in an average market (on Donna's retirement in 7 years),
• Target super savings required to generate their desired retirement income (i.e. $30K+- pa for Donna and $10K+-pa for Dennis).
Additional Information
• Move the Blue Slider to align the above amounts of required income in retirement
• Remember to set the clients retirement age
• Do not projected Dennis's superannuation after he moves to part-time work
• Your projection should use Dennis's proper risk profile

Use the ‘Print Screen' command on your computer to copy the image of the projected super savings for both Donna and Dennis and paste in the space provided below. Then read the Assumptions and Methodology section and list the key assumptions used by the Super Simulator under the headings provided.

Assessment Task 3.5

3.5 Compare superannuation funds

3.3 and 3.4 Compare two alternative superannuation funds of your choice (refer to Personal Super Fund Profiles on the Rainmaker website to find fund if required). In your analysis, you should consider the security of the fund in terms of the reputation of the product provider, their experience in the superannuation market, the long-term average return and whether the investment options match Dennis' risk profile. On the following page recommend one fund that will enable Dennis to receive a return in line with his risk profile.

Graph Returns
Create a graph using the Financial Planning Research Spreadsheet (Excel Worksheet) comparing the last year's return of the two funds on the previous page to Dennis' current fund. Copy and paste it in the space below.

Assessment Task 3.6

3.6 Research using investments to pay down mortgage

3 Calculate whether your clients would be better off in after tax dollars:
• Using their investment monies ($36,000) to pay down their mortgage; or
• Retaining the investments
You will need to calculate comparison savings in after tax dollars over the next 7 years to clear the debt before Donna retires.

Would Dennis and Donna be better off keeping their investments (bank account, term deposit and cash management account) or use the funds to pay down their mortgage? By how much?

Assessment Task 3.7

3.7 Calculate the future value of investment needs

Using the ‘ Compound Interest Formula' , calculate the future value of your client's investment needs, assuming a:
• 3% pa rate of inflation (net of inflation), and

Complete your answers in the table provided below bearing in mind the different timing requirements for funds. Show calculations using 8 decimal places, but the final results in two decimal places.

Then summarise your findings in terms of the future values (FV) arrived at, in relation to the client's stated present values (PV).

Assessment Task 3.8

3.8 Calculate the future investment needs

Using the formula provided below to calculate the regular investment required to create a future value from the previous page, determine how much Donna and Dennis would need to invest each year for 12 years into an Investment Bond so as to provide for their grandchildren's university education (Show calculations using eight decimal places, but the final results in two decimal places..
In your calculation, assume
• a 6% pa return (after management fees),
• no entry fee (rebated), and
• compounded annually.
Provide your answers in the space provided below

Assessment Task 3.9

3.9 Compare investment bonds
Click on the below links to research Investment Bonds in order to make a recommendation for the clients. All the information required to answer the questions below can be found (attached) by clicking on appropriate links and downloading the Product Disclosure Statements when in the websites.
In your analysis, you should consider the security of the fund in terms of the reputation of the product provider, their experience in the investment bond market, the long term average return and whether the investment options match your client's risk profile.

Assessment Task 3.10

3.10 Calculate mortgage payments to pay-out home loan

After researching their current home-loan, Donna and Dennis would save money by considering lowering the interest rate on their mortgage to 4.5%.
Using the Home Loans Repayment Calculator from Your Mortgage , calculate what their current repayments would need to be increased to so as to pay-out the home loan over 7 years.
Complete your answers in the table provided below.

Assessment Task 3.11

3.11 Calculate the value of investments on retirement

Using the Future Value of a Cashflow formula, calculate the gross value of potential additional savings of $2,000 every 6 months assuming:
• Additional savings will continue until Dennis retires at 65, and
• An investment return of 8% pa compounding.
For the purpose of this calculation, you will need to calculate the number of periods until Dennis retires and the 8% interest rate will be compounded half yearly (ie. 4% per period)
Complete your answers in the table provided below.

Assessment Task 3.12

3.12 Additional super contributions
Would non-concessional super contributions be better than Education Bond for saving for the grandchildren's university education?
In this activity, you are required to explain the subjective reasons why an alternative strategy to Investment Bonds, namely making non-concessional superannuation contributions may be a better option for saving towards university fees for your client's grandchildren.

Assessment Task 3.13

3.13 Research insurance needs

Determine the personal insurance needs for your clients, considering their current insurance, appropriate policy ownership and changing needs as they transition towards retirement.

Since there are a number of methods that can be used by you to calculate insurance needs, you will be assessed on whether you can provide a reasonable basis for your calculations. Therefore, it is important to provide details of your calculations and to fully explain your method of calculation.

I. What insurance cover do your client's already have?

II. What are your client's Term Life insurance requirements?
In your calculations, you should assume that the:
• remaining spouse continues working to retirement as planned,
• deceased bequeaths all assets to the remaining spouse,
• remaining spouse is the beneficiary of existing insurance held,
• no provision in the life insurance calculation needs to be made for topping up superannuation, and
• Donna is able to increase her Life and TPD cover under her current superannuation fund, and Dennis can establish Life and TPD cover under his superannuation fund.

How much should Donna's life insurance cover be increased by?
How much Life insurance does Dennis require?

Assessment Task 3.13

III.What are your client's TPD insurance requirements?
(Assume $100K Home modification, medical costs)
Notes Donna Dennis Marks

IV. What are your client's Trauma insurance requirements?(assume $50K is required for medical expenses)

V. What are your client's Income Protection insurance requirements?

VI. Using the information provided in above stated table. Complete the quotation of the monthly cost for Trauma

VII. Usingthe information provided in the above stated table. Complete the quotation of the monthly cost for Income protection

VIII. What is the total annual cost of insurance cover proposed? (Monthly premiums x 12 for Trauma and Income Protection)

IX. Complete an updated cash-flow analysis after all of your previous recommendations havebeen taken into consideration and comment on the final outcome:

Assessment Task 3.14

3.14 Identify insurance ownership
 In the table below, indicate whether the insurance premiums would be:
a) Fully tax deductible
b) Partly tax deductible
c) Not tax deductible.
Then make a recommendation on whether which insurance policies should be held by your clients' superannuation fund or personally and state your reasons.
a) Tax Treatment of Insurance Premium
b) Policy Ownership
c) Why?

Assessment Task 3.15

3.15 Compare Life Insurance products
Using information obtained from the previous activity, analyse the respective insurance products offered by both AMP Elevate Insurance and Zurich Futurewise. In your analysis you should consider the experience of the product provider, definitions of Income Protection and Trauma, their claims process and the cost of insurance.
To ensure that you are dealing with the current PDS, please provide the internet link (URL), version number and release date.
Please refer to attached AMP &Zurich PDS to complete this section

Assessment Task 3.16

3.16 Research estate planning needs
Your clients have expressed a preference to see a female wills and estate specialist who lives relatively close to them in Hurstbridge Victoria (postcode 3099) to help them establish a will and power of attorney for your clients.
Using the Accredited Specialist Directory on the Law Institute of Victoria website, identify the two specialists located near your clients who can help can provide appropriate advice.

a) List eight (8) local Wills & Estate Specialists
b) List below the details of the 1st female Wills & Estate Specialist
c) List below the details of the 2nd female Wills & Estate Specialist

Assessment Task 4

4.0 Summarise and present results of research
The next step in the Financial Service Advice Process includes the extraction and analysis of information according to research requirements and parameters.
This requires that:
• Information on financial strategies and products is collated and checked against research specification,
• Written performance, trend and risk analyses are prepared and checked against research specification,
• Any qualifications or issues for further research are described and documented, and
• Research findings are presented to the financial planner.
Complete your answers to this assessment task in the space provided in the following pages.

Assessment Task 4.1

4.1 Check findings
4.1 and 2 For each one of the Research Questions that you investigated in relation to the case study, summarise your:
• answer to the research question, and
• assessment of risk on a scale of 1 to 3 (where 1 is high)
Provide your answer in the table provided below.

Cashflow Management
1. Income 1. Given the annual adjustment to the superannuation contributions contemplated in the tax minimisation strategy in 3.2, how would this affect surplus savings?

2. How much surplus income is now available each year to invest?
2. Tax minimisation

3. How much tax is paid on the cash and fixed interest investments?
4. If the cash and fixed interest investments were transferred to Dennis' name how much tax would be saved?
5. How much tax would Donna save if she salary sacrificed to her super contribution limit?

6. How much extra Low Income tax Offset would Dennis be entitled to if he salary sacrificed all of his income above the 19% tax bracket?
3. Expenses 7. How much can the interest rate on the mortgage potentially be reduced by?
8. How much interest pa could potentially be saved if the cash and fixed interest funds were applied to the mortgage?

Wealth Creation
4. Superann-uation

9. Given the contemplated salary sacrifice changes, how would this affect the annual superannuation savings (after tax)?
10. What would be Donna and Dennis' projected super savings in an average market on retirement in 7 years time?
11. What would be Donna and Dennis' target super savings to fund their desired retirement income?
12. What superannuation shortfall will they have after all recommendations have been put place?

1. Investment Planning 1. What is the future value of car on retirement (7 years)?
2. What is the future value of $120K university fees in 12 years?
3. How much do Dennis and Donna need to contribute each year towards the grandchildren's education bonds to reach their goal?
4. Once all recommendations have been put in place, what is their annual surplus income?
5. What future value of investment savings can be generated if they save an additional $2,000 every six months at a rate of 8% pa compounded six monthly?
6. How much of these funds will need to be contributed towards super to make up the shortfall?
2. Debt reduction 7. How long it would take to pay off the home loan if the new rate and additional repayments recommendation is followed?
8. Is it financially better to retain the investment and put it into Dennis' name or to use the funds to pay down the mortgage?
9. By how much?
1. Personal Insurance
1. How much Term Life insurance does Donna require?
2. How much TPD insurance does Donna require?
3. How much Trauma Insurance do Donna and Dennis require?
4. What is the maximum amount of Income Protection Donna can apply for?
5. What is the maximum amount of Income Protection Dennis can apply for?
6. What would be the approximate monthly cost of their stand-alone insurance cover?
2. Estate Planning 7. Who are the local will and estate specialists?

Assessment Task 4.2

4.2 Further research

In the space provided below, detail:
• At least one additional research question that you believe needs answering, and
• If specialist research or advice is required.

You should consider the above in relation to each of the eight generic needs specified.

Cashflow Management
1. Income • Are there are any potential additional sources of income, such as an inheritance?
2. Tax Minimisation • Can we confirm with your accountant if there are any issues that should be considered in relation to the proposed strategy?
3. Expenses • Do you think that your current expenses will continue to be appropriate into retirement?

Wealth Creation
4. Superann-uation • Are you comfortable with Dennis' superannuation being rolled into a more appropriate fund to match his risk profile?
5. Investment Planning • Do you understand how Investment bonds work? 
6. Debt Reduction • Are there any other debts that should be considered in the plan (e.g. credit card debt)?

Wealth Protection
7. Personal Insurance • Are there any insurance providers that you would prefer we not recommend?
8. Estate Planning • Do you have your own solicitor that could help you with your Estate Planning requirements?

Part -2:

Develop a Financial Plan

Task

1 Establish plan objectives and scope
2 Develop strategic assumptions
3 Develop financial plan strategy
4 Develop financial plan

Objective The objective of this assessment is to develop and prepare a financial plan that meets the client's needs as described in the case study assigned to you.

Scope

To achieve this objective, you will need to:
• establish plan objectives and scope,
• develop strategic assumptions,
• develop financial plan strategy,
• develop preliminary financial plan,
• ensure compliance of financial plan with regulatory and organisational requirements, and
• produce completed plan.
The assessment tasks in this assessment require you to have successfully completed the Complex Financial Planning Research Spreadsheet in relation to your assigned case study.

Assessment Task 1

1.0 Establish plan objectives and scope
This first assessment task requires you to establish plan objectives and scope.
It requires you to:
• review and compare research results to client requirements and expectations,
• analyse current client situation to determine opportunities and constraints,
• identify and assess desired financial resource and market parameters, and
• develop plan objectives for asset growth, income, risk, taxation and any other objectives developed in consultation with the client.
For this activity, you should refer to the Financial Planning Research Spreadsheet you prepared in the previous Assessment Task and complete your answers in the space provided in the following page. An example has been provided in the first line.

Assessment Task 2

Develop strategic assumptions
The next step involves developing and testing your strategic assumptions, which requires you to:
• develop and test client related and economic key assumptions,
• identify and test legislative and regulatory requirements, including taxation assumptions, and
• seek clarifications from client or other professionals as required and document strategic assumptions for client review.
For this activity, you should refer to the Plan Objectives you prepared in the previous Assessment Task.

2.1 Develop & test strategic assumptions
In the second column in the table below, list the key ‘Assumptions' you have used to develop your plan objectives, considering:
• legislative and regulatory assumptions requiring verification,
• taxation assumptions requiring verification,
• client assumptions requiring clarification from your clients,
• other assumptions requiring clarification from other professionals
Now list in the third column of the table below titled ‘Verification', the information sources you will research and the stakeholders you will consult to verify the assumptions made. (Website addresses etc.)

Assessment Task 3

Develop financial plan strategy
The next step involves developing and testing your strategic assumptions, which requires you to:
• develop initial strategic options based on strategic assumptions and client specifications
• analyse and model strategic options, with any inappropriate options rejected
• develop supporting arguments for each final strategic option and include in a draft overall strategy, and
• make any necessary client checks or consultations to verify the plan strategy.
Complete your answers in the space provided in the following pages.

3.1 Develop plan strategy
In this activity, you are required to develop the final Plan Strategy that you will use to prepare the Financial Plan.
This will involve you developing the supporting arguments for each strategic option, based on the analysis and modelling undertaken in the Paraplanning Research Report
To successfully complete this task, you will have needed to undertake all ‘Verification' of ‘Assumptions' developed in the previous activity.

3.2 Rejected strategic options
As a final review of your Strategic Plan, list below the inappropriate strategic options that you rejected.
In answering this question, you should refer back to the strategic options you developed earlier in section 1.3 (a) as a brief for the Financial Planning Research Report
Type your answers below in the space provided. An example has been provided in the first line below.

Assessment Task 4

4.0 Develop preliminary financial plan

In this assessment task, you will need to develop a Financial Plan for assessment. This will require you to:
• select specific products and options to meet agreed strategy with cash flow, liquidity and capital preservation or estate planning requirements incorporated as required,
• develop recommendations for financial asset allocation structure, including where provision is required for equities, trusts, partnerships, allocated pensions, and superannuation and planned capital expenditure
• develop recommendations for changes to income and taxation arrangements, including referral advice to accountants or lawyers as appropriate,
• develop recommendations on risk management strategies and products and incorporate in the plan,
• incorporate anticipated fees and charges into the plan, with information on internal and external complaint resolution procedures available to the client, and
• document the financial plan according to organisation guidelines and procedures.

4.1 Develop a preliminary Financial Plan

Using the Financial Plan Template, prepare a Financial Plan, based on the Complex Financial Planning Assessment Task and spreadsheet you prepared earlier in relation to your case study.
Your Financial Plan will need to include:
• Covering Letter
• Cover Page
• Introduction
• Executive Summary
• Current Situation
• Risk Profile
• Information Resources
• Strategic Assumptions
• Strategies
• Cashflow Requirements
• Insurance Products Selection
• Investment Products Selection
• Disclosure of Commissions and Fees
• Portfolio Review
• Authority to Proceed
• Action to Proceed
• Disclaimer
• Client Declaration
• Adviser Declaration
• Appendix
If there are other matters you consider are relevant then you should include them. However, you need to include all the topics listed above.

Part -3:

Implement Financial Plan

Task Assessments

1 Establish actions, timings and priorities needed to implement
2 Establish procedures for implementation and undertake financial plan actions

Objective

The objective of this assessment is to establish actions, timings and priorities needed to implement a financial plan, and procedures for implementation monitoring or supervising implementation of financial plan actions.

Elements to be assessed To achieve this objective, you will need to:
• Establish actions, timings and priorities needed to implement,
• Establish procedures for implementation of financial plan, and
• Undertake and/or supervise implementation of financial plan actions.
The assessment tasks in this assessment will allow you to demonstrate your knowledge and skills in relation to these elements

Assessment Task 1

1.0 Establish actions, timings and priorities needed to implement

Once the final financial plan has been completed and your clients have signed an Authority to Proceed, the next step in the financial services advice process is to establish actions, timings and priorities needed to implement the financial plan.
This will require:
• Implementation actions to be established which are consistent with client needs and specifications,
• Individual implementation actions, including timing and priorities designed to maximise advantage to the client, to be established,
• Implementation actions to be clearly identified and written agreement to actions from the client obtained, and
• Implementation diaries and other appropriate records to be established and entries made.
Please type your answers to the following questions in the space provided.

Assessment Task 1.1

1.1 Identify required actions

In the table below, specify the client's objectives, related recommendations and required implementation actions to be undertaken by:
• the financial planner,
• internal or external staff, and
• the clients.
The next step is for you to prioritise the actions identified in the previous task so as to maximise advantages to the client.You are required to assign responsibility for the action and specify when the action needs to be completed by all internal and external personnel responsible for implementing the Implementation plan.
In preparing your answer, you should refer to your completed financial plan to ensure consistency. Please also ensure that the actions listed are comprehensive and sufficiently detailed to achieve the desired results. An example has been provided for the first recommendation.

Assessment Task 1.2

1.2 Obtain client agreement

Now that you have developed a detailed Implementation Plan, it is important to get client authorisation and involvement in the implementation process.
In this task, you are required to prepare a letter to your clients, referring to the Implementation Plan and requesting that they:
• Authorise the actions to be undertaken the Implementation Plan,
• Undertake any tasks assigned to them in the Implementation Plan,
• Sign and return the attached Investment Savings Bond Application form, and
• Schedule client review dates
The letter should be copied (cc'd) to any other personnel who have responsibility for implementing any actions identified in the Implementation Plan.
To assist the clients with completing the required documents, please complete the attached Investment Savings Bond Application form, and request they sign it. If you are unable to complete the form by typing the information in, then please print it up, complete by hand and forward back with your letter.
You should note that the letter you submit will be assessed using the criteria detailed below.

Assessment Task 1.3

1.3 Diarise implementation review meeting

Now that you have done your planning and obtained client sign-off, the final step is to make those responsible for action items accountable for completing their actions on-time.
Achieving the set objectives will require regular review meetings and adequate documentation. This will allow someone else to take over your implementation responsibilities in your absence and from a compliance perspective, it will provide a paper trail demonstrating that you performed your duty of care.
In this activity, you are required to prepare a File Note (or diary record) of a review meeting held with your client (and any other personnel involved in the implementation) at the end of the first month after commencing the Implementation Plan.
Please ensure that your file note is dated and signed by you and that it relates to an action items identified in yourImplementation Plan:
Please use the space provided below and on the following page for your response.

Assessment Task 2

2.0 Establish procedures for implementation
and undertake financial plan actions
This assessment task involves establishing procedures for implementation of the financial plan.
This will require:
• Personnel responsible for implementing each action in the plan to be identified and briefed,
• Internal and external documentation requirements to be identified and followed and audit trails established, and
• Monitoring procedures to be established which include critical timings and priorities
• The authorised representative ensures client has information on actions they must undertake and assistance is provided where needed
• The authorised representative ensures instructions are issued to internal and external personnel as per plan requirements
• Checks and follow-ups are made on lodgement of documentation to ensure plan timings are met
• The authorised representative ensures fees and charges are obtained and processed according to organisation and legislative requirements
• The client is debriefed and any concerns addressed promptly and effectively.
• Please type your answers to the following questions in the space provided.

2.1 Role descriptions

In the table below, assign the actions from your Implementation Plan to the appropriate roles below.
You should end up with the key responsibilities for each of the internal and external personnel responsible for implementing the Implementation Plan.

2.2 (a) Audit checklist

In the table below, develop an Audit Checklist that you can use to verify that all internal and external documentation requirements have been met.
As part of your Audit Checklist you will need to specify the documents you will review during the internal audit.
Please complete the Audit Checklist in the space provided (attached) below.

2.3 Monitoring checklist

In the table below, update your Implementation Plan after one month, ready for you to present at your monthly internal review meeting.
You can cut-and-paste your original implementation plan from Assessment task 1.1 and remove completed actions.
Ensure that your outstanding actions (minimum of 3) address the following:
• key documents and/or events, critical timings, and priorities.
• instructions that need to be issued to internal and external personnel as per plan requirements,
• checks and follow-ups that need to be made on lodgement of documentation to ensure plan timings are met,
• fees and charges that need to be obtained and processed, and
• client debriefing is scheduled to provide an opportunity to provide status report and promptly and effectively addressany concerns.
Please complete the Monitoring Checklist provided (attached) below.

Part -4:

Review Financial Plan and Provide Ongoing Service

Task Assessments

1 Discuss and confirm arrangements for ongoing service
2 Establish procedures for providing ongoing service

Objective Once the financial plan has been implemented, the final step in the financial services advice process is to monitor the progress of the financial plan and establish ongoing client service arrangements.

Elements to be assessed To achieve this objective, you will need to:
• Discuss and confirm arrangements for ongoing service
• Establish procedures for providing ongoing service
• Undertake and/or supervise review of financial plan

The assessment tasks in this assessment will allow you to demonstrate your knowledge and skills in relation to these elements.

Assessment Task 1

1.0 Ongoing service arrangements

Once the financial plan has been implemented for your clients, the next step in the financial services advice process is to discuss and confirm arrangements for ongoing service.

This will require you to:
• Detail the ongoing service options available and the appropriate options recommended,
• Propose the ongoing standard of service for the client including quality parameters, reporting frequency and arrangements for reviews and client initiated changes,
• Explain and confirm fees and charges for ongoing service, and
• Request client agreement for ongoing service.
In preparing your answers, you should refer to your completed financial plan to ensure consistency.

1.1 Ongoing service options

Identify and describe the service options that you could offer your clients following the implementation of the recommendations in the financial plan.

Options
"No service"

"Portfolio valuation"

Portfolio review"

"Financial Plan review"

"Other"

1.2 Identifying reasons for ongoing service

Before you consider recommending an ongoing service option to your clients, you will need to consider the future changes that may impact the financial plan you have prepared for them.
In the table below, list potential:
• personal or financial situation changes, and
• environmental (economic, market, regulatory) changes.
You should list changes in general terms. For example, it is sufficient that you list ‘family situation', rather than specifying family events such as ‘child's wedding' or ‘divorce'.

Situations
(a) Personal Changes
(b) Environmental changes:

1.3 Suggested option for ongoing service

Describe the option recommended for your client, and why you have recommended this option. Include the level of service you will provide.

1.4 Identifying fees for ongoing service

Describe the proposed fee for the for the ongoing service option you propose providing for your clients

1.5 Ongoing service letter & agreement
In this task, you are required to prepare a letter to your clients outlining the Ongoing Service and Review Options, attaching the Ongoing Service Agreement.
A template that you can use as a guide for both the Letter and the Agreement will have been attached to the email in which you received with this task. You should note that the template is incomplete and that you will be assessed using the criteria detailed below.

Assessment Task 2

2.0 Ongoing service procedures

This assessment task involves establishing procedures for providing ongoing service.
This will require that:
2.1 Personnel to implement each action in the ongoing service arrangements are identified and briefed
2.2 Internal and external documentation requirements are identified and followed
2.3 Key revision dates are diarised and client contact arrangements established
2.4 Monitoring procedures are established for critical timings and priorities and client objectives are periodically reviewed
Please type your answers to the following questions in the spaces provided.

2.1 Role descriptions

In the table below, list the key responsibilities for each of the internal personnel responsible for implementing each action in the ongoing service arrangements.
For the purpose of this activity, please assume that the "Financial Plan review" option has been selected which involves the annual preparation of a Record of Advice.

2.2 Document-ation requirements
In the table below, list the internal and external documentation required by the three roles responsible for providing the ongoing service to your clients, as outlined in the Ongoing Service Agreement you prepared in Activity Task 1.

2.3 Ongoing service checklist

In the table below, develop an Ongoing Service (Checklist) that you can use to:
• Diarise key revision dates,
• Establish client contact arrangements,
• Monitor critical timings and priorities, and
• Periodically review client objectives.
Please complete the Checklist in the space provided below, ensuring that you have at least five (5) activities that you would do over the calendar year relating to ongoing support. This could include things like inviting clients to seminars, sending monthly newsletters etc.
For the purpose of this activity, please assume that the "Financial Plan review" option has been selected which involves the annual preparation of a Record of Advice.