Gain a solid understanding of what it means to be part of a profession and act in an ethical manner.

Introduction to Professionalism

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Analyse, synthesis and critically evaluate the minimum legal obligations that financial planners must meet and the legislation in which these obligations are found
• Identify and critically analyse the elements of fiduciary duty and duty of care in providing financial advice
• Utilise advanced cognitive skills to synthesise knowledge and understanding of mandatory requirements of both the ethical requirements for FPA members and Regulatory Guide 175 in providing financial advice
• Articulate specialist theoretical and technical knowledge of different ethical codes that financial planners and members of the FPA must meet and the penalties for breaching those codes
• Communicate whilst demonstrating compliance with dynamic systems used for managing the influences upon the provision of financial advice
• Analyse, generate and evaluate a framework for verifying that any financial advice you provide is delivered compliantly and demonstrate comprehensive awareness of the different consequences for breaches of obligations
• Use your judgement, adaptability and responsibility in applying the minimum practice standards that financial planners and members of the FPA must meet and the penalties for breaching those practice standards
• Prioritise the stakeholders in the financial planning sector whilst articulating an understanding of how they influence the financial planning advice process.

Professionalism and Ethics

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Evaluate broad functions and identify attributes of a profession as they apply to financial planning
• Identify, critically analyse and explain the role of a code of ethics in uniting a profession
• Demonstrate high level, independent judgement and application of the FPA Code of Ethics, Practice Standards and Rules of Professional Conduct and the components of the FPA Code of Professional Practice
• Recognise and respect the different ethical beliefs and theories of clients and colleagues
• Utilise specialist technical and creative skills to explain and define compliance within the dual regulatory system of ASIC and the FPA.
• Model the FPA Code of Ethics in your work practices and in all communications
• Synthesise the specific obligations of a CFP practitioner
• Balance individual autonomy, an essential part of professional practice, with the restraints placed on that autonomy by the professional and regulatory organisations.

Practitioner Client relationships

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify and critically analyse the way ethical behaviour will influence your relationships with your clients
• Appreciate issues around cultural diversity and identify areas where special care is needed when working with others and how that may relate to misleading and deceptive conduct
• Analyse and evaluate the obligations of the revisions to the Privacy Act 1988 (Cwlth) and Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Rules
• Detect unconscionable conduct and the consequences of serious breaches of a planner’s obligations
• Evaluate and explain your obligations to respond to consumer complaints, how to handle them and the role of professional indemnity (PI) insurance and its regulation
• Create and document the professional financial planning advice provided to clients to justify and support your recommendations
• Demonstrate high level, independent judgement and application of the disclosure requirements and the different types of financial planning advice available to clients
• Communicate effectively with clients to get their informed consent, to ultimately meet their goals.

Practitioner Stakeholder relationships

After successful completing of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Evaluate and explain the concept of corporate responsibility and the moral/amoral organisation
• Evaluate broad functions and identify the impact of financial planning in the wider community and business environment
• Identify and critically analyse the way ethical behaviour will influence your relationships with others in your work and where special care is needed when working with others
• Analyse, evaluate and identify when and how the reporting of unethical situations that you become aware of occurs
• Synthesise and evaluate the influences in making ethical decisions and apply practical and ethical decision-making frameworks to issues arising in a financial planning context
• Manage the priorities and different opinions of clients, stakeholders and colleagues
• Demonstrate high level, independent judgement and application of your duties to the profession, the law and the community
• Articulate how you perform your professional role as a CFP practitioner, and as a leader and role model for others, and for the profession as a whole.

Build a solid foundation on which to develop robust strategies for your clients.

Introduction to Strategy Development

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Evaluate and synthesise definitions of the term ‘strategy’ in the context of financial advice and how strategy development fits into the financial planning process.
• Utilise specialist technical and creative skills to critically evaluate any potential issues arising from a client’s circumstances.
• Develop and apply lines of questioning to ensure you understand the client’s position.
• Demonstrate high level, independent judgement in developing appropriate strategies for a client based on their goals and circumstances.
• Explain and justify appropriate strategies in a clear and transparent way to clients.
• Act professionally and with responsibility and good judgement when conducting strategic and portfolio ongoing reviews.

Applied Structures

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify and critically analyse the differences between the entities, the advantages and disadvantages of each entity, and the tax treatment of each entity
• Apply communication skills and transmission of knowledge to clients explaining in detail the implications of transferring to and holding investments in the various entities
• Demonstrate high level, independent judgement and application of when and under which circumstances each entity or combination of entities should be recommended for use by a client
• Utilise specialist technical and creative skills to critically evaluate the structures, or combination of structures, most appropriate for a given client’s needs
• Use your judgement, adaptability and responsibility in applying and implementing tax-effective strategies that are in keeping with the anti-avoidance provisions of Part IVA of the ITAA 1936.
• Explain the parameters of key structures such as partnerships, companies, discretionary and unit trusts, and superannuation funds in terms of their ability to allow the client to:
  • minimise taxation
  • protect assets in case of bankruptcy, family law settlements, or loss of capacity to meet their obligations
  • undertake estate and succession planning
  • separate capital gain and income in an optimal way.

Risk Management Strategies

After successful completing of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Acknowledge the role of risk management in wealth protection and critically analyse suitable strategies to minimise or manage exposure to risk
• Analyse, synthesise knowledge and assess client exposure to risk in order to estimate the client’s insurance requirements in dollar terms
• Demonstrate communication skills and transmission of knowledge to clients when discussing the benefits and implications of different forms of insurance ownership, including insurance within superannuation
• Utilise specialist technical and creative skills to critically evaluate the appropriateness of products or policies to meet client needs and explain / transfer knowledge of the terms of such policies
• Specify to clients the consequences of not addressing and managing risk and the possible consequences of self-insurance
• Advise business owner clients on the taxation deductibility of premiums and taxation of benefits
• Use your judgement, adaptability and responsibility in applying and implementing strategies to effectively minimise or manage client risk covering complex circumstances
• Recognise when to refer to or liaise with other professionals such as tax accountants in order to achieve your client’s goals.

Debt Management Strategies

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Critically analyse and compare the different types of debt available to clients
• Analyse, synthesise knowledge and assess the true ‘opportunity’ cost of existing and proposed debt for clients to determine:
  • comparable returns gained from alternative strategies or investments
  • the impact of various contingencies
  • the loan structure suitable for specific client circumstances
  • key elements involved in associated risk management approaches
  • the way that debt can be repaid under various circumstances
  • estate planning implications
• Explain clearly to clients the use of deductible debt and non-deductible debt, taking into account
  • when each should be used
  • to what extent clients should borrow
  • the impact of taking on debt in various entity names
• Demonstrate well-developed judgement as to the appropriateness of the client’s ability to manage and service debt, taking into account possible unforeseen circumstances and making provision for any contingencies that might affect the repayment of debt
• Educate clients on strategies for managing debt incurred in daily living and provide solutions where debt is not working or is a drain on finances
• Use your judgement, adaptability and responsibility in assessing strategies where the use of debt could enhance a client’s financial situation.

Salary Packaging Strategies

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Analyse and synthesise factors to determine the optimum arrangement of salary packaging as well as structures for specific clients to help minimise taxation and help enhance wealth creation ability
• Use your judgement, adaptability and responsibility in applying and implementing tax-effective strategies that are in keeping with the anti-avoidance provisions of Part IVA of the ITAA 1936.

Risk Management Strategies for Business

After successful completing of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Acknowledge the role of risk management of the interests of the business as well as its owners and critically analyse suitable strategies to minimise or manage exposure to risk
• Analyse, synthesise knowledge and assess a business’s exposure to risk in order to estimate the client’s insurance requirements in dollar terms
• Advise business owner clients on the taxation deductibility of premiums and taxation of benefits
• Discuss the components of a business risk management plan and demonstrate how appropriate levels of cover can be determined for small business arrangement.
• Distinguish the people within a business that would require cover and propose a suitable risk management plan for different business types and ownership structures.
• Outline to business owners the use of general insurance covers and how they would be of benefit in their specific business types
• Specify to business clients the consequences of not addressing and managing risk and the possible consequences of self-insurance

Take your strategic development skills into the post work environment.  What does it mean for your client as they move overseas, retire, take on other challenges.

Leaving the Workforce: Issues and Strategies

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Evaluate and explain the potential impact of demographic changes on financial planning for those approaching retirement
• Synthesise and analyse contemporary industry perceptions of ‘retirees’ and their needs and explain the implications for strategies targeting retirement needs
• Identify and assess clients who, after leaving the workforce, wish or need to continue generating an income and create and/or accumulate wealth
• Apply specialist technical and creative skills to develop appropriate strategies that better address the needs of clients leaving the workforce across a wide range of circumstances
• Produce advice to clients that reflects their lifestyle goals and concerns when leaving the workforce
• Apply well-developed judgement when planning strategies for clients facing retrenchment, redundancy and the ‘working’ retiree.

Superannuation Strategies

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Evaluate and compare different types of superannuation funds
• Accurately assess clients’ current situation for financial implications in retirement
• Identify the most tax-effective superannuation strategies for a given client situation and how clients can maximise the effectiveness of their superannuation contributions
• Critically distinguish between the consequences of receiving a benefit as a pension versus a lump sum
• Apply specialist technical and creative skills to critically evaluate the categories and features of income streams provided by pensions and annuities and provide advice in relation to them in accordance with the Superannuation Industry (Supervision) (SIS) legislation
• Make calculations using advanced theoretical and technical knowledge of how a particular payment is taxed and whether any concessions apply including deductible amounts, tax rebates and tax-free component proportions of pensions and annuities
• Recommend and implement strategies appropriate to a client’s circumstances, both before and after retirement, to maximise income in their retirement years.

Pension and Benefit Strategies

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify and assess available resources relating to government pensions and benefits and outline how to use them for potential clients
• Accurately assess clients’ current situations to determine the impact on any strategy of what income and assets are excluded or included in an income and assets test
• Review, analyse and address within a strategy the impact on required client cash flow of a ‘waiting period’ for different kinds of income support payments
• Demonstrate high level of judgement and application of where a client may qualify for more than one type of government payment, identify which option will offer the most value to the client’s financial strategy
• Evaluate financial strategies to suit the objectives and needs of clients who are, or are likely to become, Services Australia and DVA benefit recipients
• Initiate, plan and implement useful strategies from the way rate calculations are made for different investments, assets or income streams
• Apply specialist technical and creative skills to critically evaluate potential financial and social security consequences of a variety of accommodation choices, including residential aged care accommodation
• Identify and provide solutions to complex problems for clients covering issues relating to bilateral agreements and accommodation issues
• Advise clients on gifting strategies that do not adversely affect a client’s social security entitlements.

Estate Planning Strategies

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify, evaluate and outline the circumstances in which a person may be eligible to challenge a will
• Describe to clients the implications of jointly made agreements for the protection and distribution of a client’s assets
• Utilise technical and communication skills to inform clients of the impact on asset management and disposition strategies of jointly made agreements
• Evaluate key taxation requirements and issues that may affect executors/rices of wills or clients setting up discretionary trust strategies and deceased estates
• Explain the need and significance for developing business succession plans and funding strategies for business clients
• Use your judgement, adaptability and responsibility in applying and alerting clients to the implications of not putting appropriate estate planning tools and processes in place
• Integrate key taxation-related strategies into your recommendations on estate planning
• Apply specialist technical and creative skills to critically evaluate potential situations in which client estates could be challenged and work with them and legal professionals to develop pre-emptive strategies.

Strategies for Expatriates

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify, assess and explain the significance of whether a client is a resident or non-resident of Australia for tax purposes and subsequent tax implications
• Advise clients as to the tax consequences of both leaving Australia and returning to or entering Australia
• Apply your judgement, adaptability and responsibility in devising tax-effective strategies for non-residents including explaining why they might choose to invest back into Australia
• Demonstrate your communication skills by explaining to clients strategies to repatriate superannuation savings to Australia
• Distinguish between legitimate and illegitimate offshore superannuation funds
• Use your judgement, adaptability and responsibility in developing planning strategies for clients posted overseas and helping clients plan effectively for their return to Australia
• Accurately assess and identify exemptions for which expatriates/non-residents might be eligible.

Learn the foundations of Investment Management.

Advice Process of Portfolio Construction

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify, critically analyse and apply the key steps within the advice process of portfolio construction
• Analyse the key factors and principles that need to be considered at each step of the advice process and how different decisions affect the outcomes for clients
• Communicate the advice process of portfolio construction effectively to clients
• Collect and prioritise relevant information from clients in order to provide advice in the clients’ best interest
• Demonstrate well-developed judgement and application of how portfolio construction is conducted in order to construct a tailored portfolio for clients

Asset Allocation and risk

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify and critically analyse SAA’s suitability to meet clients’ objectives
• Allocate assets in a way that demonstrates advanced theoretical and technical knowledge of how this may affect a client’s financial plan
• Recognises the importance of timeframes to asset allocation
• Implement appropriate asset allocation methods in the financial planning process utilising specialist technical and creative skills
• Synthesise information to generate factors that minimise or manage exposure to different types of risk
• Communicate investment risk and diversification benefits to clients in a way that is clear and accessible
• Utilise well-developed judgement, adaptability and responsibility in applying and implementing SAA to a client’s situation.

Investment Strategies and Structures

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify and critically analyse various investment strategies and structures that are suitable to meet client’s objectives
• Construct investment strategies in line with the relevant best practice steps required
• Compare different portfolio approaches and structures demonstrating how these may affect clients’ financial plans
• Translate the different investment strategies and structures into easily accessible language that your clients can understand
• Exercise judgement, adaptability and responsibility in applying and implementing investment strategies and structures to client situations.

Investment Managers and Products

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Evaluate broad functions and overall structure of the managed funds industry
• Synthesis of various factors to analyse the investment merit of a fund manager
• Compare and appraise different investment styles used by a fund manager
• Analyse, generate and evaluate investment management assessment criteria and application of qualitative and quantitative analysis
• Communicate clearly the main asset classes, investment managers and issues to be considered to individual clients
• Demonstrate well-developed judgement and application of the appropriateness of a fund’s distinct investment style and asset class characteristics to the specific circumstances and needs of the client.
  • Alternative Investments

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Develop specialist theoretic and technical knowledge of the different types and features of alternative assets
• Weigh up and critique the benefits and risks of alternative assets
• Identify issues to explore with clients that are important to consider when discussing alternative assets
• Determine the appropriateness of including alternative assets as part of a client’s portfolio given the client’s specific circumstances and objectives
• Compare different alternative assets utilising well-developed judgement, adaptability and understanding of the client’s best interests.

Exchange-Traded products

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Identify and critically analyse the different types and features of ETPs
• Evaluate the advantages and disadvantages of ETPs
• Make decisions based on an advanced understanding of the benefits and risks of ETFs and the issues to discuss with clients considering these products
• Demonstrate communication skills and an ability to transmit knowledge to clients explaining how ETFs can be used when building a portfolio
• Create a portfolio including ETFs where these would help achieve the client’s specific circumstances and objectives.

Applied Decision Making

After successful completion of this topic, you should be able to apply advanced knowledge and skills in one or more disciplines or areas of practice as follows:

• Comply with a client’s risk preferences when developing potential asset allocation solutions
• Create strategies for clients that appropriately balance investment goals and risk preferences in complex situations
• Initiate, plan and implement portfolio structures and approaches covering different client situations
• Identify issues to discuss with clients when explaining the differences between various strategies
• Vary portfolio construction and management to maximise performances within the prevailing economic conditions
• Acknowledge the importance of ongoing management and review of a client portfolio in order to meet the best interests obligations under the Corporations Act 2001 (Cwlth).