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FPC002 Applied Financial Planning

This subject focuses on the realities faced by a financial adviser working in the Australian advice industry. Topics 1–8 will provide the foundation necessary for giving advice. Topics 9–12 build upon this basic knowledge and show its practical application in advice giving.

Comprehensive coverage of the main asset classes and managed investments includes how these investment products are used in financial planning.

The subject also covers basic practical and personal skills necessary to establish and maintain client relationships and examines the advice process in depth, including how to develop and implement a portfolio to suit a client’s investment objectives in light of risk–return trade-offs, other considerations such as tax issues and the legal and administrative frameworks supporting the industry and its products and services.

Also included are a series of case studies and applications to help demonstrate the planning and development of investment strategies and client portfolios in line with a client’s stated objectives.

An understanding of the economic, legal and ethical contexts of financial planning is recommended knowledge for this subject. It is therefore recommended that students complete Economic, Legal and Ethical context for Financial Planning (FPC001) prior to undertaking this subject.

Note: A basic understanding of financial mathematics is assumed knowledge for this subject. Students may wish to familiarise themselves with some basic concepts outlined in the resource below before commencing the subject.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      1. Apply techniques to establish and develop client relationships.
      2. Compare the key features and risks of each asset class and the products within that asset class.
      3. Analyse various types of managed investments and administrative structures.
      4. Conduct appropriate quantitative and qualitative research as part of the financial planning process.
      5. Assess clients’ goals and financial position to form the basis of advice.
      6. Design a suitable asset allocation and investment strategy for a client.
      7. Present recommendations of suitable products and strategies that you have developed.
      8. Apply the financial planning process to ensure clients’ objectives and needs are met.
  • Subject content
    • Topic Title
      Topic 1 The financial planning process
      Topic 2 Asset classes
      Topic 3 Debt and equity securities
      Topic 4 Managed investments
      Topic 5 Investment risk
      Topic 6 Taxation basics
      Topic 7 Superannuation, insurance and estate planning
      Topic 8 Client interview and communication skills
      Topic 9 Understanding the client
      Topic 10 Analysis of current situation
      Topic 11 Investment strategy development and portfolio development
      Topic 12 Advice implementation and ongoing reviews

  • Assessment
  • Prerequisites
  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia/Kaplan course and have completed the following subjects within the course completion time frame may not also complete this subject:

      • FIN211 Financial Planning Fundamentals or
      • 155 Financial Planning Fundamentals

      plus

      • FIN212 Investment Advice or
      • 156 Investment Products
  • Reading list
    • Prescribed text

      • Taylor, SM & Juchau, RH 2016, Financial planning in Australia: advice and wealth management, 7th edn, LexisNexis Butterworths, Chatswood, NSW. ISBN 9780409341775

      Retailers of educational books include Co-op Bookshop and Boffins Bookshop. Texts can also be borrowed from the Kaplan library or other libraries. Details of required and further reading are provided in the subject room.  Purchase of any text other than a prescribed text is not required.