AFF3111 2006 Sem 2 Solutions

AFF3111 2006 Sem 2 Solutions - Semester 2, 2006 Solutions...

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1 Semester 2, 2006 Solutions – Final Examination AFF3111 Personal Financial Planning Question One (8 + 4 = 12 marks) (a) Step 1 – Gather client data using interview(s), fact-find questionnaire, and risk profile assessment. Step 2 - Determine the needs and objectives of the client. Step 3 – Analyse the client’s financial position and identify any problems that may exist. Step 4 – Develop strategies which meet the client’s needs and objectives. Step 5 - Prepare a comprehensive written plan which contains alternatives and recommendations. Step 6 - Implement the agreed-upon written plan. Step 7 – Review, revise, and maintain the financial plan. (b) A financial plan is the outcome of a holistic process of understanding the goals and objectives of the client and making written recommendations in a Statement of Advice (SoA) as to how these goals might be achieved. It includes the personal, financial and psychological goals of the client in both the short, medium and long term. The purpose of a written plan is to provide a programme of saving, risk management and investment so that the client is able to accumulate sufficient capital to self-fund their retirement years in a manner which is appropriate to their lifestyle aspirations. Naturally, the plan should be revised as the client’s circumstances vary. Question Two (6 + 4 =10 marks) ASIC is the major regulator for this industry. It: (a) administers the Financial Services Reform Act and Corporations Law as it relates to the financial services industry; (b) acts as the single licensing regime for the industry; (c) releases policy statements to enunciate the law ( e.g ., PS122 Know Your Client
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This note was uploaded on 07/19/2011 for the course BUS 3111 at Monash.

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AFF3111 2006 Sem 2 Solutions - Semester 2, 2006 Solutions...

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