Review Financial Plan and Provide Ongoing Service

This assessment task involves discussing and confirming arrangements for ongoing service, establishing procedures for providing ongoing service, and undertaking and/or supervising review of financial plan.

Review Financial Plan and Provide Ongoing Service
Assessment Task
FNSFPL505
Your details:
Name:
Address:
Phone:
Company name
Email:
Your assessment task
Keep a copy of your assessment task for a period of 12 months.
Submit your assessment to our Education Team via [e-mail]
Instructions for uploading are contained in the Assignment section where this assessment task was
downloaded.
No handwritten responses will be accepted.
Plagiarism Statement
All assessments must be your own work and not a result of plagiarism or collaboration with
other students or workmates.
Assessment
The pass mark is 70% for each element.
If you do not achieve this, you will receive feedback via your email address and be asked to
resubmit your assessment for a second marking.
Assignments will not be returned to you.
Task Assessments Elements Target
Mark
Pass
Mark
Actual
Mark
1 Discuss and confirm arrangements for ongoing service FNSFPL505.1 29 20
2 Establish procedures for providing ongoing service FNSFPL505.2 20 14
Total 49 34
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Mentor Education
Introduction Name: ____________________
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
process
Start by:
1. Reading the Assessment Task and case study.
2. Type your answers to the assessment tasks into this template
document (hand-written answers are not accepted)
3. Submit your completed document by emailing it to
[e-mail]
Don’t forget to keep a copy and retain it for 12 months.
Need help? If you have any questions please email the Mentor Support Team at
[e-mail]
Related
Assessments
When you have completed all written assessment tasks in this program of
study (Statement of Advice series), you will then need to undertake one
other related assessment:
 Skills Assessment (telephone simulation) to assess your
communication and interpersonal skills in relation to presenting your
research findings to the financial planner. FNSFPL508.4.4
This assessment will be conducted together with the presentation
requirements in relation to preparing a financial plan, FNSFPL503
implementation, FNSFPL504 and ongoing service FNSFPL505
Units of
competency
Upon successful completion of these assessments, you will be awarded
the Unit Competency Review Financial Plans and Provide Ongoing
Service (FNSFPL505)
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Mentor Education
Assessment Task 1 Name: ____________________
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.
(Marks 29)
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Mentor Education
Assessment Task 1, continued Name: ____________________
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 Description Marks
“No service” No service in financial advisory services means, the situation when the advisor is failed
to provide any meaningful and justifiable solutions to the client based on their
requirements and projections of requirements. In the given case study, the financial
advisor can provide a suitable service through various options to the client. When an
advisor fails to provide annual advisory solution to the financial plans, requirements and
constraints of a client they have not yet appointed anyone else to provide the service, it
will be considered as no service.
/ 1
“Portfolio valuation” Portfolio Valuation service is one of the key services of all which a financial advisor can
provide. Portfolio means a combination of investment options to generate maximum
return to the investor. Individuals make investment to accumulate fund for their
retirement and some objectives, which requires some amount of fund in some future
date. There is a direct relationship between risk and return and every investment
options have some risks. A financial advisor helps and individual to make the balance in
the risky and non-risky investments to protect their invested fund and to earn maximum
possible return from their investment. / 1
Portfolio review” Portfolio review is the periodic review of the investment options in which the investor
has already invested their funds. It helps the investor to make certain strategic changes
in their retirement or investment plans. Generally, portfolio review is carried out annually
and the financial advisor suggests certain improvement in the portfolio based on the
result of the annual portfolio review. It can be conducted for a shorter period based on
the client’s requirement and request. Portfolio review services are generally provided on
periodic contract and under a periodic contract. A financial advisor needs to follow the
changes and fluctuations in the investment portfolio of the client for the contracted
period. / 1
“Financial Plan
review”
Financial plan review means reviewing and reassessing the retirement plans and
financial goals of a client and suggesting suitable financial strategies to the client.
Financial plan reviews the financial assets available to the client at present and gives
suitable suggestions for achieving the financial goals in future. Financial plan review is
also performed periodically; it can be conducted annually or for a specific period based
on the client’s requirement. This is one of the main advisory services, which a financial
advisor can provide.
/ 1
“Other” Apart from above services, a financial advisor can provide various other services to a
client for achieving their overall financial goals and objectives. They can provide tax
planning services to their client to minimize their income tax burden and to maximise
their disposal income. They also can provide some management consultancy, estate
planning and financial research services to their client.
/ 1
Subtotal / 5
Continued
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Mentor Education
Assessment Task 1, continued Name: ____________________
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 Changes Marks
(a) Personal
Changes
Ongoing services includes various services which is provided for a contracted
period of time, within that period of time, there may be various changes in
various parameters which affects the financial decisions of the individual.
Those potential personal changes can be outlined as follows.
Family situations and conditions
Personal accident or any other abnormal happenings
Retirement age
Reemployment after retirement
Shifting from one location to another location
Health of the individual
Change in employment
Change in earning sources / 6
(b)
Environmental
changes:
There is certain potential environmental change that also needs to be
considered by a financial advisor for providing ongoing services to the client.
Place of living
Inflation rate
Growth rate in earnings
Market changes
Political factors
Social welfare and various other social factors
/ 3
Subtotal / 9
Continued
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Mentor Education
Assessment Task 1, continued Name: ____________________
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.
Based on the requirements and financial plans of the client, they can be offered a financial
plan review service as an ongoing service. They can be provided with the periodic review
and advise for achieving their financial objectives and goals. It includes, reviewing
superannuation plans, insurance policies, financial assets review etc.
/ 3 marks
1.4 Identifying
fees for
ongoing
service
Describe the proposed fee for the for the ongoing service option you propose
providing for your clients
As can be cited from their financial plans that, they want to achieve certain financial goals
after their retirement with their current savings and investments. Therefore, a fixed
incentive can be fixed as the fees for the financial plan review services. The fees must be
for the contracted period of service. It can be proposed that a yearly $140 could be the
fees for annual financial planning review services.
/ 2 marks
Subtotal / 5
Continued
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Mentor Education
Assessment Task 1, continued Name: ____________________
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
criteria
The submitted letter should relate to the previously submitted Financial
Plan and:
1. Be in MS Word format to confirm IT skills,
2. Be professional and well structured to confirm literacy skills,
3. Identify the ongoing service options available,
4. Recommend the appropriate option and explain why
5. Propose the ongoing standard of service for the client including:
a) reports provided,
b) reporting frequency,
c) any changes to legislation and economic conditions
d) client initiated changes.
6. Explain and confirm fees and charges for ongoing service, and
7. Requests client agreement for ongoing service (i.e. refer to attached
Agreement for the client to complete)
This Letter and Agreement should be submit with the assessment task by
email via [e-mail]
Sub-total /10
Total / 29
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Mentor Education
Assessment Task 2 Name: ____________________
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.
(Marks 20)
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Mentor Education
Assessment Task 2, continued Name: ____________________
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.
Roles Responsibilities Mark
Authorised
Representative
(Financial
Adviser)
They must acquire the required licence for working as a representative financial advisor.
Must display their authorised registration number and who they are acting for while
providing any services. They must disclose the principal for whom they are acting and
they must make it clear to the client that they are not the principal. They must work under
a written agreement with their principal / 3
Assistant
Financial Adviser
(Paraplanner)
Assistant financial advisor works with the authorised representatives for helping them and
making the process smoother. They are responsible for managing clients’ records and
data, maintaining operational information and assisting the advisors to provide better
services to the client. Therefore / 3
Receptionist &
Office
Administrator
Receptionists are responsible for communicating and contacting with the client to collect
required information and let them know about any information. Office administrators are
responsible for managing the day to day official works and office management. They need
to keep record of all the operational activities and managing all those operating activities. / 3
Sub-total / 9
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Mentor Education
Assessment Task 2, continued Name: ____________________
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.
Roles Documents Mark
(a) Authorised
Representative
(Financial
Adviser)
Authorised representative should collect documents relating to the available investment
and savings of the client, the agreement paper of the service being signed mutually. They
also need to collect such other document which are crucial and necessary for providing a
good financial plan to the customer. They are responsible for managing the financial and
non financial assets of the client and to help them in achieving their retirement and
financial goals with a proper financial plan and advice. / 2
(b) Assistant
Financial Adviser
(Paraplanner)
They need to collect documents relating to the personal details of the client, their
residency, available bank information, real documents and documentary proofs of the
insurances and investments of the client from the bank or the institution. Assistant
Financial Advisors, are therefore mainly responsible for assisting in financial advisory
services. / 2
(c) Receptionist &
Office
Administrator
Receptionist should collect the contact details of the client. Booking appointment and
appointment with the client and providing responses to the clients; quarries. Office
administrator needs to collect all the legal and contract binding documents for office
records
/ 2
Sub-total / 6
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Mentor Education
Assessment Task 2, continued Name: ____________________
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.
Annual Ongoing Support Procedure (Checklist)
No. Documents Who Month Done 
1 Personal details Assistant
advisor
January 
2 Available investment and savings details Authorised
Represent
atives
February 
3 Contract and agreement papers Office
administra
tor
March 
4 Analysis of available of investments and financial plan worksheet Authorised
representa
tive
April 
5 Investigation of investments available Assistant
Advisor
May 
6 Collecting real information from the respective banks and financial
institutions
Assistant
Advisor
June 
7 Analysis of available documents and investments Authorised
representa
tives
July 
8 Booking appointment with the client for personal discussion Receptioni
st
August 
9 Discussion with the client and collecting documents regarding present
situation of the client
Authorised
Represent
ative
Septembe
r

10 Collecting market information regarding present economic changes Assistant
Advisor
October 
11 Analysing the best investment options and preparing the revised financial
plan
Authorised
representa
November 
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Mentor Education
tive
12 Making the statement of advice and presenting it to the client Authorised
representa
tive
December 
Sub-total / 5
Assessment Task Total / 20
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