Mentor Education FNSFPL506: Determine Client Requirements Assessment

This document is a student's response to the FNSFPL506 assessment task, focusing on determining client requirements and expectations in a financial planning context. The assignment involves a case study of Dennis and Donna Barker, where the student, acting as a financial advisor, addresses various aspects of the initial client meeting. The solution includes outlining the financial planning process, explaining the services offered by Mentor Financial Planning, and detailing how to establish rapport with clients. It covers legal requirements, documentation, and the steps involved in the financial planning process, including fee structures, licensee details, and strategies for handling client needs and complaints. The document addresses specific questions related to the initial meeting, client preparation, building rapport, the financial planning process steps, licensee and principal details, offered products and services, and fee structures, demonstrating an understanding of the financial planning process and the role of the financial advisor. It also includes how to assess client understanding of fees and handle client referrals for specialized services.

Determine Client Requirements and Expectations
Assessment Task
FNSFPL506
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]
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 Task for a
second marking. Assessment tasks will not be returned to you.
Task Assessments Elements Target
Mark
Pass
Mark
Actual
Mark
1 Inform client of the financial planning process and
services FNSFPL506.1 49 34
2 Obtain relevant information on client's existing financial
situation FNSFPL506.2 77 54
3 Determine client expectations and requirements with
respect to financial planning service offered by the
representative
FNSFPL506.3 16 11
4 Prepare and update necessary documentation where
required FNSFPL506.4 17 12
Total 159 111
Assessor’s Initials: ____________________
Assessment Date: ____________________
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Mentor Education
Introduction Name: ____________________
Objective The objective of this assessment is to determine client requirements
and expectations for the practical client situation described in the
case study assigned to you.
Scope To achieve this objective, you will need to:
 Inform client of the financial planning process and services,
 Obtain relevant information on client's existing financial
situation,
 Determine client expectations and requirements with respect to
the financial planning service offered by the representative, and
 Prepare and update necessary documentation when required.
The assessment tasks in this assessment will allow you to
demonstrate your knowledge and skills in 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]
Units of
competency
Upon successful completion of these assessments, you will be awarded
two units of competency for FNSFPL506: Determine Client
Requirements and Expectations
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Mentor Education
Assessment Task 1 Name: ____________________
1.0 Financial
planning
process and
services
Establishing client rapport at the start of a professional relationship is a
preliminary step in the Financial Service Advice Process.
The first assessment task requires you to inform the client of the financial
planning process and services, as detailed in the case study allocated to
you.
This requires that the:
 Financial planning process and role, and any limits of authority of the
representative are explained to the client,
 The licensees and principals of the organisation and services and
capacity of the organisation, including any relationship to other
financial services are explained to the client,
 Fees and charges are explained to the client and the client's
understanding of these is confirmed before proceeding with delivery
of service,
 Clients with special needs are identified and appropriate action taken
or referral made, and
 Procedures for internal and external complaints handling and
resolution are explained to the client.
For this activity, you should refer to the FSG that accompanies this
assessment task.
In this activity, you are required to prepare for an initial meeting (which is
also the ‘fact finding’ interview) with your clients in the case study by
answering the short answer questions in the spaces provided in the
following pages.
Marks /49
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Mentor Education
Assessment Task 1, continued Name: ____________________
Questions Marks
(a) Give some thought to the sort of things you would cover in the first meeting (assume this
meeting will also incorporate the ‘fact finding’ interview). Include any legal requirements
and other documentation that may be helpful in the interview.
Answer:
The things that needs to be covered in the first meeting with the Donna and Dennis are
 The allocation of assets and tolerance of risks;
 Personal details;
 Details of expenditures;
 The distribution of income and consequences of tax at retirement;
 The planning for incapacity;
 The legacy planning;
 The planning for retirement;
In order to provide an appropriate planning it is necessary to determine the financial
condition of the clients. It is legally required to determine the financial situation and the
documents should be gathered that provides the financial information about the client.
/ 5
(b) How might you ask the client to prepare for the first meeting?
Answer:
The client should prepare for the first meeting by deciding the goals and objective of taking
the financial advice. The client should prepare for the meeting by arranging for all the details
regarding expenses, investment and insurances. It is very essential that the client should
have pre-determined goals and objectives before the beginning of the meetings.
/ 5
(c) To establish a relationship with your clients, what strategies might you use to build
rapport during the interview process?
Answer:
The strategies that should be used to build a comfortable and healthy relationship with the
client is to arrange a meeting so that initial contact can be established. The financial
planner should be on time on the meeting and have small discussion initially to establish
the common ground. Then after the client is comfortable the adviser should collect
information that are relevant for the making the advice. The client should be assured that
the personal information collected would be confidential as per the regulatory
requirements. This will provide the clients with confidence for sharing all the information.
The client should be encouraged for asking questions so that all the doubts of the client
can be answered. The adviser should clearly explain the fees structure and other details
in order to avoid ambiguity and establish a trust worthy relationship with the client.
/ 5
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Mentor Education
(d) In point form, explain the steps in the financial planning process.
Answer:
The steps in the financial planning process are:
 Establish and define the relationship with the client.
 Collect the client’s information.
 Analyze and assess the client’s financial status.
 Develop the financial planning recommendations and present them to the
client.
 Implement the financial planning recommendations.
 Review the client’s situation. / 6
(e) What details would you provide regarding your licensee and principal?
Answer:
A client deals with the financial planner who is generally an authorised representative of an Australian
Financial Services Licensee. There are thus two parties.
Firstly, there is a party who holds an Australian Financial Services Licence. Broadly, anybody who carries on
the business of providing financial services, must hold an AFS licence. An AFS licence is required if you
provide financial product advice to clients or deal in a financial product. The Federal Government through
provides the AFS licence ASIC.
Secondly, most financial planners operate as authorized representatives of an AFS license holder. What this
means, is that the AFS license holder has authorized the planner to provide advice in respect of certain
products and areas, e.g. insurance, wealth management or superannuation
The relationship between licensee and authorized representative (I) is one of principal and agent or employee.
The authorized representative acts on behalf of, on account of, or for the benefit of the licensee (Mentor
Financial Planning). The principal (Mentor Financial Planning) will be liable for the conduct of the
authorized representative in the same manner and to the same extent as if the principal had engaged in that
conduct.
The details that should be provided are:
 AFS license of the adviser;
 Firms registration number;
 The scope and details regarding service provided;
 The client should be made aware of the details of the principal and should be made aware that the
actions of the authorized representative will bind the principal.
/ 4
Subtotal / 25
Continued
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Mentor Education
Assessment Task 1, continued Name: ____________________
Questions Marks
(f) Explain the products and services you can offer the client and the capacity of the
organization.
Answer:
Mentor Financial Planning offers both personal advice and general advice.
Mentor Financial Planning is authorized to provide
financial product advice and arrange the following
services:
risk management and protection of assets;
retirement planning;
retrenchment and redundancy advice;
wealth creation strategies;
access to direct share advice; and
social security.
The organization has the capacity to provide advice risk management and assets protection advice but it
cannot engage in purchase and sale of assets. The organization provides retirement planning but the
entire product that are suggested are not dealt buy the organization. The products that are suggested by
the organization as a part of the wealth creation strategies are not dealt by the organization. The
organization is not licensed as a broker though it provides advice related to shares as a part of the
strategy.
/ 2
(g) What would you tell the client about yourself?
Answer:
I am authorized representative and acts on behalf of, on account of, or for the benefit of the licensee (Mentor
Financial Planning). As a financial planner I have adequate experience and qualifications, conducts
adequate ongoing professional development activities and maintains proper client files I would tell them
about qualifications, experiencein Financial services industry and professional membership I hold.
In summary, the client works with the planner who operates in terms of the strict conditions imposed by the
licensee.
/ 5
(h) List the type of fees you could charge the clients. What are the benefits of explaining
these fees to your clients?
Answer:
We may charge you a fee, based either on the time we spend developing your plan.
Our hourly rate ranges between $100 and $130 plus GST.
Alternatively, we may receive a payment on the value of the funds you invest called brokerage, which
is paid to us by the Financial Product issuer/s. This will be negotiated and confirmed with your adviser
prior to proceeding with the recommendation.
Generally, the payment we receive will be based on the amount you invest. It may vary from one
Financial Product issuer to another.
The benefit of disclosing and explaining the fees to the client is that the client can make proper decision before
hand whether to continue with the financial advisory services. / 5
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Mentor Education
(i) How would you assess the client's understanding of the fees and charges before
proceeding with delivery of service?
Answer:
As an Advisor I should be 100 percent transparent when it comes to explaining their
fee structure so clients fully understand how they are paid. I should define which
portion of the fee is paid out to the Mentor Financial services and which portion is
paid out to me. Once I answer all relevant questions and explain the procedure I will
ask for any concerns they have on it. If clients have any concerns about the fees, I
should address to these concerns before moving further. / 2
Subtotal / 14
Continued
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Mentor Education
Assessment Task 1, continued Name: ____________________
Questions Marks
(j) Who would you consult with, or refer your clients to, if they had:
i) a deficiency in English Ensure a third party is present who has been appointed to explain
things to client. /1
ii) a need for a variety of
products and service outside
of your authority
The authorised adviser of the products that are outside the current
license.
/1
iii) complex estate planning
situations
Consult a solicitor who works in the areas of preparation of wills and
powers of attorney.
/ 1
iv) unbalanced financial
situations
The client should be referred to an accountant or financial planner for
unbalanced financial situation / 1
v) a disability The client should consult with the government department for receiving
any eligible benefit for the disability / 1
vi) needs of different cultural
backgrounds
The culture, ethnicity and language expert should be consulted
with. / 1
vii) age related needs (i.e. very
young or older age groups)
The age related issues should be referred to experts.
/ 1
(k) Outline the three steps your clients should take if they have a complaint or dispute prior
to contacting ASIC.
Dispute resolution procedure
1. Initially the complaint is referred to the planner.
2. The planner takes full details from the client and investigates the issue.
3. The planner responds to the client with a suggested solution.
4. If the suggested solution is acceptable, then it is implemented.
5. If the planner is unable to resolve the matter with the client, then it is referred to the AFS licensee.
6. The AFS licensee must have an internal dispute resolution procedure that complies with standards made or
approved by ASIC.
7. If the licensee is unable to resolve the matter, it would be referred to an ASIC approved External Dispute
Resolution scheme (EDR) (the licensee must be a member of such a scheme), e.g. the Financial
Ombudsman Service. This is the primary organisation providing ASIC approved external complaints
resolution services for consumers who are unable to resolve a dispute directly with their financial service
provider.
/ 3
Subtotal / 10
Total / 49
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Mentor Education
Assessment Task 2 Name: ____________________
2.0 Client’s
existing
financial
situation
The second assessment task requires you to obtain relevant information
on the client's existing financial situation by completing the Fact Finder,
based on the information contained in the Case Study allocated to you,
including:
 Facts and information relevant to the client's particular service
request are obtained and confirmed,
 Client's expectations, requirements and objectives are identified,
with the clients encouraged to disclose relevant information to
determine their personal/financial situation and any special needs,
 Relevant information on investments and assets held by the
client and their current income, expenditure and liabilities situation
are obtained,
 A summary analysis of client's financial position is developed
based on extent of client disclosure and requirements, and
 Risk and fraud indicators are identified accurately and all
information is checked for consistency and potential conflict.
The case study provided is brief in nature so there will be some fields in
the Fact Finder (e.g. telephone number) where the case study does not
provided required information. You may leave these fields blank.
However, in a real client situation you must not leave any fields blank and
provide a warning (e.g. client declined to provide this information).
Current tax rates, levies and offsets can be found at www.taxcalc.com.au
Enter your answers to the questions in the space provided on the
following Fact Finder.
Marks / 77
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Mentor Education
Assessment Task 2.1 Name: ____________________
2.1 Personal Details
(a) Contact details
DETAILS CLIENT 1 CLIENT 2 Mark
1. Title: Mr Mrs
2. Given Name: Dennis Donna
3. Preferred Name:
4. Surname: Barker Barker
5. Date of Birth: 01/01/1965 02/02/1966
6. Marital Status: Married Married / 1
Home Address: Address: Lot 3 Wattle Road
Suburb/Town: Hurstbridge
State: Victoria Postcode: 3099
Home Telephone
No.
05684841
Preferred
Contact No.
05684841 /1
(b) Child / dependant details
Name: Megan
/ 1
Relationship: Daughter
Date of Birth: 1990
Current Age: 27
Financially Dependent: Independent
(c) Financial arrangements involving siblings, parents or others
Name:
/ 1
Relationship:
Financial Arrangement
Date Commenced:
Amount of Money:
(d) Relationship history involving financial implications
There is no child support payments that are received by the client. The clients have superannuation
funds.
/ 1
(e) Health details
Do you Smoke: No No
/ 1
State of Health: Excellent Excellent
Are you aware of any
health issues that may
impact your ability to earn
an income? (please
provide details)
There is currently no health issues. There is currently no health issues.
Sub-total / 6
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Mentor Education
Continued
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Mentor Education
Assessment Task 2.2 Name: ____________________
2.2 Work Details
(a) Other personal financial arrangements
Donna currently works for full time employment with Best Marketing.
Dennis currently works for full time as a custom furniture maker in Newbolds Pty ltd.
/ 1
(b) Investment Experience
CLIENT 1 CLIENT 2 Mark
Superannuation savings fund that provides a return of
4% p.a.
Superannuation fund that provides a return of 7%.
/ 1
(c) Acting as guarantor
Are you acting, or do you intend to act, as a guarantor for anyone: No
/ 1
(d) Employment details
CLIENT 1 CLIENT 2 Mark
1. Employment Status:  Unemployed Full Time Employed Self Employed Part-time Retired Other Unemployed Full Time Employed Self Employed Part-time Retired Other
2. Employer Name: Newbolt’s Pty Ltd Best Marketing / 1
3. Position Title: custom furniture designer Executive / 1
4. Primary Duties: Building furniture Marketing
5. Work Address: Hurstbridge Hurstbridge
6. Work Phone No.: 45485451 931245672
7. Previous Job None None
8. Employment Security: Secured Secured / 1
9. Are you contemplating
leaving your employer?
There is no intention of leaving the job
in the near future.
There is a plan to retire at the age of
60 years.
10. Do you foresee any
substantial change in
your income in the next
2-5 years?
There is no sudden change in income
is expected in the next 2 to 5 years’
time.
In 2 to 5 years, there is no chance of
change in substantial income.
/ 1
Notes:
Sub-total / 7
Continued
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