Overview.md

Financial Planning Areas of Competence

The Financial Planner Competencies are categorized into eight areas:

1. financial planning principles, process and skills
2. financial management
3. tax planning
4. asset management
5. risk management
6. retirement planning
7. estate planning
8. integrated financial planning

Assessment Structure

1. Collect the quantitative and qualitative information required to develop a financial plan
2. Consider potential opportunities and constraints and assess information to develop strategies
3. Synthesize information to develop and evaluate strategies to create a financial plan

Six Step financial planning process

1. Establish and define the relationship with the client
   • Inform the client about financial planning and your competencies
   • Determine whether the financial planning professional can meet the client’s needs
   • Define the scope of the engagement
2. Collect the client’s information
   • Identify the client’s personal and financial objectives, needs and priorities
   • Collect quantitative information and documents
   • Collect qualitative information
3. Analyze and assess the client’s financial status
   • Analyze the client’s information
   • Assess the client’s objectives, needs and priorities
4. Develop the financial planning recommendations and present them to the client
   • Identify and evaluate financial planning strategies
   • Develop the financial planning recommendations
   • Present the financial planning recommendations to the client
5. Implement the client’s financial planning recommendations
   • Agree on implementation responsibilities
   • Identify and present product(s) and service(s) for implementation
6. Review the client’s situation
   • Agree on responsibilities and terms for review of the client’s situation
   • Review and re-evaluate the client’s situation