Management of Personal Financial Risk - Project Assessment 2

Steps to complete project:
1. Review the client profile. (same clients as Assessment 1)
2. Review your application of the risk management process (5 steps) to the
Smiths' situation (Assessment 1)
3. Discuss the risks you identified from Assessment 1 with your group. (Are
they similar, any missing? Collaborate.)
4. Complete the risk analysis.
5. Review the rubric and the following for guidance on what information
needs to be included in the SOA.
6. Discuss in your group what sections of the SOA each individual will work
on.
Project due date: 17 October 2021. End of Week 10
Summary of Rubric/Structure: Below is what we need in order to get HD for each heading
Intro/executive summary: must include situation, objectives, strategies, expected outcome and next
step.
outlined briefly & objectively.
Current Personal & Financial Situation
Client’s reasons for seeking advice, personal and financial information has been detailed objectively
to be able to prepare strategy recommendations.
Recommendations
Comprehensive explanation of the advice strategies, and the justification of recommendations.
Objective details on the risks/disadvantages and estimated outcomes relevant to the client's
circumstances.
Required structure to implement strategy
Comprehensive outline of additional information that the client needs to consider in order to have
complete understanding of advice. Examples: types of insurance, the sums insured, and ownership
structure, In addition, objective justification of any structure recommended.
Disclosure of Payments for Advice
Clearly details all forms of adviser fees in the categories of initial advice fees, ongoing advice fees,
commissions, any refund of commissions and how these fees will be paid.
Ongoing services
Comprehensive detail on the offer of on-going service, costs and value of service relevant to client's
circumstances
Implementation Schedule
Comprehensively detailed schedule to implement all the strategies; priorities, tasks, timeframe
Authority to proceed
Comprehensively details key elements that requires the client's express consent relevant to client's
circumstances; eg, changes in existing products, on-going advice contract
Financial position before and after implementation of strategy, eg risk needs analysis
Comprehensively detailed personal tax, cash flow and balance sheet tables/graphs are neatly
completed for before AND after scenario relevant to client's circumstances clearly demonstrating
value of advice

Assumption
Comprehensively details reasonable assumptions used to prepare tax, cash flow and balance sheet
figures and other related personal and economic assumptions, relevant to client's circumstances
Insurance Product recommendations
Types of Insurance Cover, eg personal, general, business covers
Comprehensive explanation of all types of insurance recommended, relevant to client's circumstances

Statement of Advice
Thank you for the opportunity to discuss your insurance needs. We are pleased to enclose your
personal insurance plan which outlines our recommendations.
This Statement of Advice has been prepared based on your objectives and your current financial
situation. Please take the time to carefully read and understand it, to ensure that it is consistent with
your views and reflects the information we discussed.
The recommendations in this report are based on current information and should only be considered
to be current for one month from the date of this report. After that time, or if you have had any
significant changes to your personal circumstances, you should contact us so that we can re-assess
their suitability.
Once implemented, the recommendations in this Statement of Advice should be reviewed on a
regular basis to ensure that they continue to meet your ongoing needs. Changes in legislation,
financial markets and your personal situation will occur over time, and as your financial adviser we
can work with you to update your financial plan so that you stay on track to achieve your goals and
objectives.
This Statement of Advice relates to you only and the advice contained in this document is not suitable
to anyone else. Please take time to review the fee disclosure section for an explanation of the fees
associated with the development and implementation of our recommendations.
We look forward to helping you implement the enclosed recommendations, and in the meantime we
remain available to assist you with any queries you may have in relation to this Statement of Advice.
Yours sincerely,
___________________________________
26 Swinburne

ABN
Australian Financial Services Licensee
Licence No:
Table of Contents
1.0 Introduction 6
1.1 Summary of Advice 6
1.2 Scope of Advice 6
1.3 How my Advice is Appropriate 6
1.4 Risks in my Advice 6
1.5 Next Steps 7
2.0 Current Personal & Financial Situation 8
2.1 Personal Details 8
2.2 Existing Insurance 8
2.3 Financial Details 9
3.0 Recommended Insurance Details 10
4.0 Implementation 11
5.0 Ongoing Services 12
6.0 Disclosure of Fees & Commissions 13
7.0 Authority to Proceed14
Authorisation 15
Appendices – Financial Position/Risk Needs Analysis 16
Appendices – Assumptions 17
1. 1.0 Introduction