Potential Midsem
Unit 1 Financial Planning Profession 1. What are some of the most important reasons that lead to a demand for financial planning services? 2. How might the business cycle, media and behavioural biases impact on investor behaviour? How can a financial planner help? 3. Discuss the historical development of the financial planning industry in Australia 4. Explain the relationship between the financial planning profession and other key components of the wealth management industry in Australia. 5. What is RG 146? Explain the differences between Tier 1 and Tier 2 in terms of the training requirements and scope of advice. 6. The financial planners operate in a dynamic regulatory environments. Discuss 3 recent regulatory changes that has a significant impact on the financial planning industry. Unit 2 Financial Planning Process and Statement of Advice 1. Explain the significance of each step in the six‐step financial planning process. Discuss the relevant legal requirements where applicable. 2. What are household financial statements? How should the assets be valued? How should a client compile information to construct these statements. List four pieces of information that you can learn from the financial statement and their implications for constructing a financial plan. 3. Discuss how does the financial planning needs/objectives/preference of a person vary over the life cycle. 4. Why is the risk tolerance/profile of a client important in the financial planning process? Describe and compare the methods that a planner can use to assess a client's risk tolerance. 5. Specify the structure and content of a comprehensive statement of advice. Relate to relevant legal requirements where applicable. 6. Provide examples of how conflict of interest that may arise in the financial planning profession? What can a planner do to mitigate these conflicts or their effects? Unit 3 Asset Allocation 1. Describe the key asset classes and their investment