FNSFMK515_Assessment3_Ball_REvise

docx

School

University of Technology Sydney *

*We aren’t endorsed by this school

Course

AUDITING

Subject

Management

Date

Nov 24, 2024

Type

docx

Pages

Uploaded by AgentIceGoldfinch29

Assessment task3 Part A What it means to be a Financial Planner A financial planner is a qualified investment professional who helps individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting up a program to help the client meet those goals. Financial Planner’s role in the financial services industry (industry context) . Organize and manage finances -Many of us have complex financial lives, yet lack the time, expertise, discipline and objectivity to put our financial house in order. Financial planners can examine your overall net worth and financial situation, help you identify your life goals and objectives, and recommend strategies to help you towards achieving your goals. Marriage and children -Blending two independent financial lives can be complicated, particularly if there are conflicting financial personalities or there were previous marriages. It’s critical to address such issues as insurance, tilting of assets and delegating money management duties to preserve and protect assets. Divorce -The end of a marriage is frequently financially devastating. Simply dividing assets in half is often a bad decision. A financial planner can help assist in reviewing how a settlement will serve you for the long term. Receiving a financial windfall -Inheriting a substantial sum of money or winning the lottery often involves other financial and non-financial factors. For example, it may be better to put the money toward debts, or you may want to donate some of it to charity. Inheritance in particular is often fraught with deep emotional issues and family conflicts, so independent outside advice can be invaluable. Planning for retirement -Investment decisions are naturally a critical component of retirement planning. But often overlooked are how to withdraw funds from your nest egg once you retire, and especially what kind of retirement you want to live. A financial planner can help you crystallize your retirement vision, then design a plan to help towards achieving that vision. Funding for college -Beyond selecting among investment options, other key issues include financial aid and tax considerations. Facing a financial crisis -The loss of a job, a serious illness, a legal problem or a natural disaster might prompt the seeking of financial advice. Career advice -Financial planners can advise you on the financial consequences of a career change, compensation or separation package, employee stock options and retirement plans such as deferred compensation and 401(k)’s. Running a business -A financial planner can help in to setting up a retirement and benefits plan for the owner and the employees, and, most often overlooked by owners, creating a realistic succession plan upon the business owner's retirement, death, disability, or decision to sell. Death of a spouse -All too frequently the surviving spouse hurriedly and under great stress makes critical long-term financial decisions involving insurance,

investments and retirement plans. Rarely is there a more important time for informed, objective outside advice. Charitable giving -Families blessed with enough discretionary income and assets may want to make substantial donations to one or more favorite charities. But there are many options, some of which can save you taxes, thus allowing you to leave more to your beneficiaries. Insurance review -A financial planner can analyze your insurance needs and look at options like disability income and long-term care in relation to overall financial circumstances and goals. Estate planning - While you need an attorney to draft the documents utilized in estate planning, the financial planner can put those documents in the context of your financial circumstances and your vision of how you want your estate dispersed. Financial planners can discuss strategies for wills, living wills, power of attorney, life insurance, trusts and other estate planning issues for the distribution of wealth, in life and in death. In addition a Financial Planner should:  Check in with their clients periodically to discuss economic conditions and present “what if” scenarios.  Help clients estimate their basic living expenses in retirement and discuss strategies for the distribution of assets following retirement.  Propose asset allocation strategy adjustments aligned with your current risk tolerance and financial goals. Professional Associations and bodies As the financial planner You also need to provide information on the financial adviser’s membership of any professional bodies relevant to providing financial services. Up to five (5) professional bodies can be selected from the available options (see below). You can also select 'Other' (free text box) and enter the name of the professional body if they are not listed. Professional bodies listed:  Association of Financial Advisers (AFA)  Association of Independently Owned Financial Professionals (AIOFP)  Association of Superannuation Funds Australia (ASFA)  Australian and New Zealand Institute of Insurance and Finance (ANZIIF)  Australian Institute of Superannuation Trustees (AIST)  Chartered Accountants Australia and New Zealand (CA)  Chartered Financial Analyst Institute (CFA)  CPA Australia (CPA)  Financial Planning Association of Australia (FPA)  Independent Financial Advisers Association of Australia (IFAAA)  Institute of Managed Account Providers (IMAP)  Institute of Public Accountants (IPA)  National Insurance Brokers Association (NIBA)  SMSF Association  Stockbrokers Association of Australia

Code of Conduct and Ethics (an ethical approach to workplace practice and decisions) . The AFA is guided by six principles of professionalism that form the basis of the AFA Code of Conduct – Principles of Practice. As a dynamic Association, these principles evolve to ensure they remain relevant to members, their clients and the ever-changing regulatory landscape. The principles were developed by a cross industry advisory group of experienced professionals in consultation with AFA members. The six principles of professionalism set out the minimum professional practice and ethical standards for members of the AFA when providing financial services.The central objective of the code is the achievement of good consumer outcomes and fostering and enhancing the professional reputation of financial advisers. Principles of Professionalism Principle 1 - Integrity and Professional Conduct Act with the utmost integrity which encompasses the highest standards of professional conduct, honesty, and ethics. Maintain high standards of personal and professional conduct to meet community expectations, reflect favourably upon the financial advisory profession and serve as an example to others. In all business interactions, act with respect towards clients and business associates and do nothing that will bring you, your practice, the financial advice profession or the AFA into disrepute. Ensure that your remuneration represents fair value for your clients. Clearly and concisely explain to clients all remuneration that you will receive for the services that you provide to them so that the client fully understands and agrees to both the services they will receive and the amount you will receive. Protect the confidentiality and integrity of all business and personal information relating to your clients’ affairs by only disclosing it to those who need it to service your clients and ensuring that access is controlled. Principle 2 - Best Interests Act in the best interests of your clients in seeking to extend and secure their financial wellbeing. As a trusted professional, you owe a duty of care to your clients and must act at all times in your clients’ best interests. You must comply with both the letter and the spirit of the law. Develop strong relationships with your clients, based upon genuine understanding of their needs and objectives. Commit to the pursuit of the necessary interpersonal skills to use emotional intelligence effectively in client interactions to complement your technical knowledge (including strong listening skills and the ability to demonstrate empathy and care). In relation to specific recommendations to replace an existing product, ensure that you can demonstrate that there is an appreciable net benefit for the client. Principle 3 - Conflicts of Interest

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Do not allow conflicts of interest to influence your actions inappropriately. Always place the client’s interests before your interests. Conflicts must be identified and then either managed appropriately or avoided, to ensure that the client’s interests are placed ahead of your interests or those of any person associated with you. This is a continuing obligation. Be very clear whom you represent and in whose interests you are advising, particularly when advising more than one person. Principle 4 - Informed Client Consent Educate your clients on financial matters and help them to understand the decisions that they are making. Accurately and honestly present all the information that is essential to clients’ decision-making to assist them to exercise clear and informed choice in their financial decisions. This includes taking all reasonable steps to educate your clients about their present and future financial needs. It also requires that the risks, implications and potential consequences of their decisions are explained to clients. Principle 5 - Service Standards Provide professional service that is aligned to your clients’ circumstances and your agreements with them. Offer service levels that are appropriate for your clients’ circumstances. Be timely and efficient in delivering the services you have agreed to provide. Be a professional, proactive and responsive advocate for your client’s interests with product providers and others where required. Principle 6 - Professional Expertise Strive to achieve high standards of professional expertise by maintaining and improving your knowledge and skills, and those of your staff. Always meet and seek to exceed the minimum training standards via a combination of qualifications, designations and ongoing professional development. Ensure that you and your staff only provide advice in areas where you are qualified, authorised and skilled. Where you become aware of a client need that you are unable to provide advice on, ensure that you make your client aware of the issue and discuss options to refer the client to a suitable professional. Provide appropriate training, guidance and supervision to your staff to ensure that they are aware of their professional obligations when dealing with clients and have the capability to act accordingly.

Legislative framework/requirements under which the Financial Planner operates The Corporations Amendment (Professional Standards of Financial Advisers) Act 2017 commenced on 15 March 2017. It introduced several measures in the Corporations Act 2001 (Corporations Act) to raise the education, training and ethical standards of financial advisers providing personal advice to retail clients on more complex financial products. Educational, skill and knowledge requirements (organisational context and requirements) financial planner needs a bachelor's degree in a field such as accounting, finance or business. In-depth knowledge of useful and relevant topics obtained through education includes investments, estate planning, insurance, retirement planning and risk management. Licensing Requirements To become a financial adviser, you must meet specific education requirements and be licensed under an Australian Financial Services (AFS) licence. From 1 January 2019 the education and experience requirements to become a financial adviser will be set by the Financial Advisers Standards and Ethics Authority (FASEA). FASEA are still consulting on the requirements to meet the new pathway requirements. However, it has published an interim list of FASEA approved existing degrees (PDF). It is important to note that currently the list does not include approved Graduate Diplomas of Financial Planning, which will likely become the postgraduate pathway for new entrants. Part B Goal and objective To achieve by operating a financial service, financial investment, and management consulting in the community. Key strengths and weakness strenght  Strong experiences in financial service and investment are played significant roles in my life

 Well experienced on selling life insurance and doing investment in the stock market as a professional businessperson for many years. Weakness - lack of consultation skill - need more Financial certificate Professional development needs APF - links to an individual professional plan - include 3 hrs related to ethic - minimum 30 hrs each financial years with a minimum of 90 hours over the training - Maximum 45 hours accumulated through non accredited activities - Maximum 30 hrs accumulated through non accredited reading Consultation strategy - links to an individual professional plan - include 3 hrs related to ethic - minimum 30 hrs each financial years with a minimum of 90 hours over the training - Maximum 20 hours accumulated through non accredited activities - Maximum 15 hrs accumulated through non accredited reading Key strategies (how are you going to achieve your goals) - define the business strategy - doing the marketing - develop the business plan - peer evaluation and monitoring

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Action plan Date Program name Provider Deliver CPD hr Non CPD hr TPB hr 3/11/23 SMS Strategy workshop SME Training Face to face 6 0 6 20/11/23 Interpersonal skill N/A Online 1 0 1 1/12/23 Fiancial industry update N/A Online 0 2 2 3/12/23 Advance estate planning ABC professional planning Face to face 5 0 5 13/12/23 Supper annual Management FPA Face to face 0 2 2 14/12/23 Reading investment strategies Fiancial journa Online 0 3 3

20/12/23 FPA conference Conference Face to face 20 0 20 23/12/23 Reading the business ethic and its relevant with consumer Reading Online 0 3 3 23/12/23 Advisor plan workshop Workshop Face to face 10 0 10 Grand total 52

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Key priority - attend all seminars and presentation - attend the meeting of organization - attending the conference follow the action plan - serving the technical and education commiters - develop course material in a relevant financial planning topic Reference https://www.investopedia.com/terms/c/code-of-ethics.asp https://asic.gov.au/for-finance-professionals/afs-licensees/professional-standards-for-financial- advisers/qualification-exam-and-professional-development/ https://www.naswma.org/page/71/Code-of-Ethics-of-the-National-Association-of-Social- Workers.htm Appendix Evedience of meeting with manager Meeting Script: Sage: Good day, everyone. Thank you for joining this meeting. Today, I'll discuss some crucial legislation updates regarding the Hawking prohibitions and present our organizational plan to address these changes. Let's dive in. Sage: Firstly, I'd like to highlight the legislation updates. As of most recent update, there have been significant changes to the Hawking prohibitions. These updates mainly focus on tighter regulations around the solicitation and sale of financial products. Sage: The key changes include stricter rules on unsolicited offers, the prohibition of certain sales methods, and enhanced penalties for non- compliance. anizational plan. We've devised a comprehensive strategy to reassess, implement, and monitor our existing internal procedures in light of these legislative updates. Sage: In the reassessment phase, we'll conduct a thorough review of our current procedures to identify areas that need adjustment. This includes scrutinizing our sales methods and communication strategies.

Sage: The implementation phase is where we'll roll out the necessary changes across our teams. We'll provide targeted training to ensure everyone understands and adheres to the updated procedures. Sage: Finally, in the monitoring phase, we'll continuously assess our compliance with the new regulations. We'll use advanced analytics tools to track and measure our success, making real-time adjustments if necessary. Sage: As for the timeline, we aim to complete the reassessment by 30 days, initiate implementation by 60 days, and commence monitoring by 30 days. Sage: Now, before we move forward, are there any questions or concerns regarding the legislation updates or our organizational plan? Manager 1: Yes, could you provide more details on the enhanced penalties for non- compliannce Sage: Certainly. The enhanced penalties include heavier fines and the possibility of criminal charges for serious violations. We'll ensure our teams are well-informed and trained to avoid any breaches. Manager 2: How will the training be conducted during the implementation phase?

Sage: Excellent question. We plan to conduct both in-person and online training sessions, supplemented with reference materials for continuous learning. Manager 3: What role will each department play in this process? Sage: Each department will have designated compliance officers to oversee and enforce the updated procedures. We'll provide more specific details during the implementation phase. Sage: Thank you for your questions. Your engagement is crucial to the success of this initiative. Sage: In conclusion, we are committed to adapting to these legislation updates effectively. Together, we'll ensure compliance, maintain our reputation, and provide the best service to our clients.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

FNSFMK515_Assessment3_Ball_REvise

Related Documents