Competency Title:

Develop Financial Plan

Competency Type:


Competency Description

This competency refers to the ability to develop plans to achieve client's future financial objectives using appropriate financial planning tools. The scope includes estimating future cash flows, asset values and withdrawal plans, as well as estimating asset growth and steps needed to meet the financial goals and review of plan as a result of changes in client status.

Level 1 - Awareness

Level 1

• Identify information required to develop a financial plan.
• Identify the components of a financial plan.
• Identify the possible strategies in creating a financial plan.
• Identify factors that could prompt a review of the financial plan.
Level 2 - Knowledge

Level 2

• Collect and collate information required to develop the financial plan.
• Recognise the financial implications on client's objectives, needs and values.
• Recognise the potential strategies applicable to the client's financial requirements.
• Identify material changes in client's personal and financial situation.
Level 3 - Skill

Level 3

• Analyse client's current situation and determine opportunities and constraints to achieve the desired objectives.
• Analyse the inter-relationships across the financial planning components.
• Analyse and model strategic options to find the optimal strategy for client's financial goals.
• Consult with client to determine changes that require review of the financial plan.
Level 4 - Mastery

Level 4

• Evaluate the financial plan objectives considering client's attitude and level of financial sophistication.
• Consolidate the recommendations and action steps into the financial plan.
• Develop strategies to manage the risk associated with the financial plan execution.
• Determine the appropriate cycle of review for the financial plan.
Level 5 - Expert

Level 5

• Review and assess that the information collated for the financial plan is sufficient, accurate and consistent.
• Assess the feasibility of proposed strategies to achieve desired financial objectives.
• Evaluate strategies considering impact of economic, political and regulatory environments.
• Formulate strategies to mitigate risks associated with decisions to review the financial plan.