BFA 204 Financial Planning

School of Accounting and Corporate Governance Faculty of Business BFA 204 Financial Planning Semester Two, 2012 Unit Outline Roger Colbeck CRICOS Provider Code: 00586B

Contact details Unit coordinator/lecturer Unit coordinator/lecturer: Roger Colbeck Campus: Email: Hobart roger.colbeck@utas.edu.au Phone: (03) 6226 2758 Fax: (03) 6226 7845 Room Number 502 Postal Address: School Website: School of Accounting & Corporate Governance University of Tasmania Private Bag 86 HOBART TAS 7001 http://www.utas.edu.au/accg Consultation Hours: By appointment in Hobart or via email with 48 hour turn around during business hours (Mon Fri, 9.00am 5.00pm) The University of Tasmania 2012

Contents Unit description 1 Prior knowledge & skills 1 Alterations to this unit as a result of student feedback 1 Specific attendance/performance requirements 1 Generic Graduate Attributes Guide 2 Learning expectations and strategies 4 Learning resources required 5 Requisite texts 5 Recommended reading 5 MyLO 5 Equipment & materials 6 Details of teaching arrangements 6 Lectures 6 Occupational health and safety (OH&S) 7 Assessment 7 Assessment schedule 7 Assessment details 8 How your final result is determined 8 Submission of assignments 9 Requests for extensions 9 Penalties 9 Academic Referencing 11 Academic Misconduct 11 Plagiarism 12 Further information and assistance 12 Unit schedule 14

Unit description A comprehensive financial plan will contribute towards the quality of a person's life by reducing the uncertainty about their future needs and the resources that will be available to meet them. This unit examines what is involved in organising and managing an individual s financial resources, and how to protect, maximise and enjoy the benefits obtained from these resources. The financial planning industry underwent significant change from March 2004 with the implementation of the Financial Services Reform Act 2001 (FSRA). The aim of the Unit is to provide a sound understanding of the process of financial planning, together with some of the fundamental skills and knowledge that are required. In line with these objectives, each of the recognised steps in the financial planning process that have been developed by financial planners will be examined in detail, namely: gathering qualitative and quantitative data; identifying goals; identifying financial problems including: setting priorities, deciding on trade offs and considering opportunity costs; preparing or interpreting written recommendations; implementing agreed-upon plans; and, reviewing, revising and maintaining personal financial plans. The key areas that are important for the financial planning process are examined, namely: the regulatory framework; investments; managed funds; superannuation; home ownership; risk management and insurance; taxation; consumer credit; social security; estate planning. Prior knowledge & skills While prior knowledge is not assumed for this unit, students will be able to bring with them accumulated learning from their work experiences (where appropriate). Alterations to this unit as a result of student feedback Not applicable for this semester. Specific attendance/performance requirements Unless prevented by illness or other acceptable reason, you are expected to attend all the scheduled sessions and conduct presentations for this unit. You are also required to complete the prescribed readings before each session and submit all assignments. Furthermore, you are expected to participate in the session discussions. To pass the unit, you will need to achieve 50 per cent overall and make a satisfactory attempt at the assignment. 1

Generic Graduate Attributes Guide Learning Outcomes Knowledge of the financial planning industry and social framework Knowledge of the role and function of the financial planner and how the role applies to the clientplanner relationship. Apply financial planning tools and concepts. Communicate financial planning tools and concepts. Assessment Criteria In assessing this learning outcome we will be looking at student ability to: Discuss current issues in financial planning. Evaluate and discuss the relationships between demographic groups and market conditions. Explain the legislative framework behind estate planning and superannuation. Explain the nature and purpose of various financial products and concepts. Interpret data collection documents relating to financial planning scenarios. Explain the steps of the financial planning process. Research financial planning products and concepts in relation to client needs and objectives. Calculate/analyse financial planning concepts/products in relation to client needs and objectives. Develop strategies appropriate to client needs and objectives. Link financial products and concepts to the needs and objectives of clients. Create a financial advice document that includes at least 2 alternatives. Explain the process for implementing and reviewing strategies recommended. Assessment Methods Tutorial Participation Tutorial Participation Exam Tutorial Participation Tutorial Participation Exam Exam Exam Tutorial Participation Exam Tutorial Participation Exam Tutorial Participation Exam Graduate Attribute Outcomes Knowledge (2) Reasonably detailed knowledge in chosen field of study and the ability to apply knowledge to diverse accounting and related situations. Lifelong learning skills in pursuit of professional development. Communication (2) High level written communication skills in a range of formats, considering audience needs and appropriate to real world business situations. Oral communication skills in a range of contexts and considerate to culturally and linguistically diverse audience needs. Problem solving (2) The ability to apply logical thinking to a range of business related problems. An awareness of when information is required to address a problem together with the capacity to locate, analyse and use relevant information. Global perspective (2) - Exploration and analysis of culturally based values and beliefs. Global issues inherent in the personal backgrounds of diverse student groups, student experiences and content knowledge. Social responsibility (2) The ability to determine and apply an ethical framework to simulated accounting and governance tasks for situations involving both Australian and international contexts. Considering both the Australian and international context, a demonstrated awareness and understanding of the social responsibilities of accounting and governance practices and the ability to make decisions that consider sustainability 2

Learning expectations and strategies Expectations The University is committed to high standards of professional conduct in all activities, and holds its commitment and responsibilities to its students as being of paramount importance. Likewise, it holds expectations about the responsibilities students have as they pursue their studies within the special environment the University offers. The University s Code of Conduct for Teaching and Learning is set out in the University Calendar at: http://www.utas.edu.au/policy/code_conduct.pdf and states: Students are expected to participate actively and positively in the teaching/learning environment. They must attend classes when and as required, strive to maintain steady progress within the subject or unit framework, comply with workload expectations, and submit required work on time. You are therefore expected to take responsibility for your own learning. To maximise the benefit that you can derive from this unit, it is crucial that you thoroughly prepare for the classes by carefully studying all the appropriate readings and formulating questions on matters with which you are experiencing difficulty. If you miss any timetabled session, it is YOUR responsibility to obtain any information that you have missed. Teaching and Learning strategies Although you are expected to take responsibility for your own learning, you are not on your own. Teaching staff will be available to help facilitate this, and if you need additional information refer to the Learning Development website: http://www.utas.edu.au/learndev/ One strategy that should help you achieve excellent results is that of organising your time so that you spend enough time attending all the sessions, undertaking readings before sessions, consolidating material after sessions, reviewing exercises, as well as preparing for sessions, assessments and the exam. Tutorial engagement requirements Employers of financial planners seek graduates with communication and analysis skills, as well as the ability to be able to ask and answer questions, as all these skills are needed to deal effectively with clients. To help prepare you for the workplace, the delivery of this Unit is designed to develop your skills in these areas. You will be awarded marks for active and appropriate participation where your engagement in this way adds value to the tutorial. It will not be possible to gain marks for tutorial engagement without attending the tutorial where marks are awarded. Detailed arrangements for the tutorial engagement assessment task will be discussed in Week 2. Note that your tutor s decision on awarding marks for tutorial engagement will be final. 4

Learning resources required Requisite texts The following is the set text for this unit. It is assumed that the following text will be read and used where required. Taylor,S; Juchau,R; McDonald,T; Houterman,B., 2010, Financial Planning in Australia 4th edition, LexisNexis Butterworths, Sydney Recommended reading 2007/2008 and 2008/2009 Australian Master Financial Planning Guide, 2007/2008 2008-2009, CCH Australia, Sydney, [2007/2008 edition held in Reserve in the Morris Miller Library]. Australian Master Superannuation Guide, 2008/2009, CCH Australia, Sydney, [held in Reserve in the Morris Miller Library]. MyLO General MyLO is an internet service adopted by the University and used in this unit. MyLO may be accessed on computers in computing laboratories at the University or on your computer at home or at work. Information about accessing and using this service, about required computer specifications and frequently asked questions, and about how to get help if you experience difficulties, is available at the following University website: http://www.utas.edu.au/coursesonline You are strongly advised to visit this site and become familiar with the features of MyLO, especially if you have not used it before. You will probably be using it in other units that you are studying as well. Here are some important points about accessing our web site: Access to MyLO To access MyLO from your own computer you will need the appropriate software, and hardware to run that software. Please see UConnect at http://uconnect.utas.edu.au/ for information about computer software you will need. Note: Older computers may not have the hardware to run some of the required software applications. Contact your local IT support person or the Service Desk on 1818 if you experience difficulties. See MyLO: Information for Students for further information about accessing MyLO. MyLO expectations 1. Students are expected to maintain the highest standards of conduct across all modes of communication, either with staff or with other students. Penalties may be imposed if the Unit Coordinator believes that in any instance or mode of communication that your language or content is inappropriate or offensive. MyLO 5

In particular provides a public forum. Due levels of respect, professionalism and high ethical standards are expected of all at all times. 2. Submission of assessment tasks via MyLO presumes that students have read, understood and abide by the requirements relating to academic conduct, and in particular those requirements relating to plagiarism. All work submitted electronically is presumed to be signed-off by the student submitting as their own work. Any breach of this requirement will lead to student misconduct processes. 3. MyLO is an Internet service for teaching and learning provided by the University. As much of the delivery of this unit will be available through MyLO, it is expected that students will access the facility on a regular basis, preferably at least once per day. 4. Students are also expected to check their UTAS email site on a regular basis. 5. Students submitting requests or queries to staff via email should provide very clearly their: Family name: Preferred name; Student ID; Unit code (i.e. BFA204) and allow teaching staff at least 24 hours on business days to reply. Other Equipment & materials You may be required to make use of a calculator in a number of the tutorials. It is not necessary to have a particular type of calculator. A general purpose calculator will be sufficient. Please ensure that you have access to such a calculator that you can bring to class with you from (and including) Week 3. Details of teaching arrangements Lectures There are three (3) contact hours per week in this unit which will be delivered by means of a two-hour Lecture and a one-hour Tutorial. Depending on the requirements of the lecturers and the topic that is to be covered in a given week, the traditional lecture mode of delivery may be interspersed with a series of interactive sessions involving discussion, problem solving, examination of case studies and videos. The discussion questions, problems and case studies may be taken either from the prescribed textbook (at the end of each chapter there are Questions, Problems and Case Studies ) or, they will be provided by the lecturer (in the relevant class or in advance). There may also be presentations arranged by guest lecturers who are experts/practitioners in particular fields such as financial planning, social security, loans and credit, and estate planning. You will be able to ask questions of these presenters and discuss relevant issues. These will form part of the weekly threehour class. 6

In some classes, videos may be shown that relate directly to the material being covered in the lecture. This method of teaching and learning is more in keeping with the actual process of financial planning and seeks to develop the essential skills that are needed by financial planners and those undertaking their own personal financial planning. Tutorials Tutorials will commence in Week 2. These sessions will help you to develop a fuller understanding of the material presented in the lectures. They will be used to explore the topics introduced in the previous week and to further develop your skills and practical problem solving techniques. You will receive feedback on whether you understand each new topic by contributing to discussion in tutorials. Issues to be discussed, and problems to be attempted, in each tutorial will be made available at the tutorial or via the unit s MyLO web site. The way that you will be allocated to a tutorial group will be explained to you in the first lecture. Tutorials work as groups, and to achieve good group interaction, it is imperative that you remain with the group to which you are allocated. Permission must be obtained from your lecturer before you may change groups. Occupational health and safety (OH&S) The University is committed to providing a safe and secure teaching and learning environment. In addition to specific requirements of this unit you should refer to the University s policy at: http://www.admin.utas.edu.au/hr/ohs/pol_proc/ohs.pdf Assessment Assessment schedule Assessment task Date due Percent weighting Online test To be completed week 8 Mon 9.00 AM Fri 5.00PM 10% : 3:00pm, Friday September 24, 2012 25% Tutorial engagement Weekly from Week 3 5% End of semester exam In University exam period 60% 7

Assessment details Assessment task 1: Online contributions Task description The Test comprises 20 multiple-choice questions covering the first seven weeks of the Unit. The purpose of this Test is to assess your understanding of the concepts and issues included in the Modules. The duration of the Test is two hours. Task length Not Applicable Links to unit s intended Refer to the table on page 2 learning outcomes Assessment criteria 10% of total unit assessment Due date To be completed on MyLO week 8 between Mon 9.00 AM Fri 5.00 PM Assessment task 2: Tutorial engagement Task description Engagement during each tutorial, as evidenced by making one or more oral contributions that add/s value to the tutorial Task length Variable Links to unit s intended Refer to the table on page 2 learning outcomes Assessment criteria Refer to the table on page 2 5% of total unit assessment Due date Weekly during the tutorials from Week 3 Assessment task 3: Written assignment Task description Written in depth analysis of a financial planning topic. Task length Approximately 2500 words, where approximately will be interpreted as plus or minus 10% of the word limit. Links to unit s intended Refer to the table on page 2 learning outcomes Assessment criteria Refer to the table on page 2 25% of the total unit assessment Due date 3pm Friday September 24, 2012 Assessment task 4: End of semester exam; 3-hour + 15 minutes reading time Description/conditions Three-hour written examination that assesses all intended learning outcomes and represents 60% of the total unit assessment. Due date The final exam is conducted by the University Registrar in the formal examination period. See the Current Students homepage (>Examinations and Results) on the University s website. How your final result is determined The weighted scores for the test, assignment and final exam are added together to determine your final result. You must achieve an overall mark of at least 50% to pass the unit. 8

Submission of assignments s are to be presented and submitted in accordance with the Guide for Students - Presentation and Submission of s issued by the Faculty of Business. In line with Faculty policy all assignments are, where practical, to be submitted via MyLO. s in this unit must also be submitted either via the assignment box, Level 5, Business Building, Hobart campus. You must attach a signed cover page to your assignment declaring that all material submitted is your own except where there is clear acknowledgement or reference to the work of others. This sheet is available on the Unit s MyLO site. In relation to this point your attention is drawn to the University s rules on plagiarism, and to page 11 of this Unit Outline. s will be marked as quickly as possible after all have been submitted, and returned with comments and grades awarded. Requests for extensions Requests for extensions must be consistent with Faculty policy (Paragraph 4) below. The relevant form to apply for an extension is available at: http://www.utas.edu.au/accg/current%20students.html Penalties Late Submission of Continuous Coursework s that are not handed in by the due date will have marks deducted, unless a signed and approved late submission form is attached. The penalty for late submission of assignments in this unit is 10% of the available mark for each day the assignment is late. In this Policy 1. (a) day or days includes weekends and public holidays; (b) late means after the due date and time; and (c) coursework includes all internal non examination based forms of assessment 2. This Policy applies to all students enrolled in Units taught by the Faculty of Business at whatever Campus or location. 3. Students are expected to submit coursework on or before the due date and time specified in the relevant Unit Outline. The onus is on the student to prove the date and time of submission. 4. Students with special circumstances may apply for an extension. Requests for extensions should, where possible, be made in writing to the Unit Coordinator on or before the due date. Students will need to provide independent supporting documentation to substantiate their claims. 9

5. Late submission of coursework will incur a penalty of 10% of the available marks for each day the coursework is late unless an extension had been granted on or before the relevant due date. Coursework submitted more than five (5) days late will not be accepted. 6. Late work must be submitted to a staff member in the relevant School or Faculty Office and the time of submission recorded. 7 Academic staff DO NOT have the discretion to waive a late penalty, subject to Paragraph 4 above. 8 The word limit specified on your assessment task is a maximum. If you submit over-length work there will be an automatic 10% penalty of available marks. It will be at the discretion of the Unit Coordinator whether the words beyond the limit will be assessed. Title pages, reference lists and appendices are not included in word counts. Review of results and appeals 1. It is expected that students will adhere to the following School Policy for a review of any piece of continuous/internal assessment: Within 5 days of the release of the assessment result, a student may request a meeting with the assessor for the purpose of an informal review of the result (Academic Assessment Rule No 2 Clause 22 http://www.utas.edu.au/university-council/university-governance/rules ). At the meeting the student should be prepared to discuss specifically the marks for the section/s of the marking criteria they are disputing and why they consider their mark/s is/are inappropriate. The assessor shall provide a response to the request for review at the meeting or within 5 days. If the student is dissatisfied with the response, he/she may within 5 days of the response request the Head of School to arrange for a formal review of the assessment by completing and lodging with the School a Review of Assessment Form. 2. Students may also request a review of the final result in a unit. The request and payment must be made within 10 days from the date of the result notification. Students are referred to Academic Assessment Rule No 2. Clause 23. Students may also request to see their examination script after results have been released by Completing the Access to Exam Script form available from the School office or at http://www.utas.edu.au/accg/current%20students.html Your Unit Coordinator will then contact you within 5 working days to arrange a time to go through your exam script with you. For further information, view: http://www.studentcentre.utas.edu.au/examinations_and_results/forms_files/ 10

Academic Referencing In your written work you will need to support your ideas by referring to scholarly literature, works of art and/or inventions. It is important that you understand how to correctly refer to the work of others to maintain academic integrity. Failure to appropriately acknowledge the ideas of others constitutes academic dishonesty (plagiarism), a matter considered by the University of Tasmania as a serious offence. The appropriate referencing style for this unit is the Harvard referencing method. For information on presentation of assignments, including referencing styles refer to: http://utas.libguides.com/referencing Please read the following statement on plagiarism. Should you require clarification please see your Unit Coordinator or Lecturer. Academic Misconduct Academic misconduct includes cheating, plagiarism, allowing another student to copy work for an assignment or an examination and any other conduct by which a student: (a) seeks to gain, for themselves or for another person, any academic advantage or advancement to which they or that other person are not entitled; or (b) improperly advantages any other student. Students engaging in any form of academic misconduct may be dealt with under the Ordinance of Student Discipline, and this can include imposition of penalties that range from a deduction/cancellation of marks to exclusion from a Unit of the University. Details of penalties that can be imposed are available in the Ordinance of Student Discipline Part 3 Academic Misconduct, see http://www.utas.edu.au/universitycouncil/legislation/. 11

Plagiarism Plagiarism Plagiarism is a form of cheating. It is taking and using someone else's thoughts, writings or inventions and representing them as your own; for example, using an author's words without putting them in quotation marks and citing the source, using an author's ideas without proper acknowledgment and citation, copying another student's work. If you have any doubts about how to refer to the work of others in your assignments, please consult your lecturer or tutor for relevant referencing guidelines, and the academic integrity resources on the web at: http://www.utas.edu.au/plagiarism/ The intentional copying of someone else s work as one s own is a serious offence punishable by penalties that may range from a fine or deduction/cancellation of marks and, in the most serious of cases, to exclusion from a unit, a course or the University. The University and any persons authorised by the University may submit your assessable works to a plagiarism checking service, to obtain a report on possible instances of plagiarism. Assessable works may also be included in a reference database. It is a condition of this arrangement that the original author s permission is required before a work within the database can be viewed. For further information on this statement and general referencing guidelines, see http://www.utas.edu.au/plagiarism/ or follow the link under Policy, Procedures and Feedback on the Current Students homepage. Further information and assistance You are encouraged to contact your lecturer as early as possible if experiencing difficulties in the study of this unit. You can make an appointment with the lecturer by phone or email. If you have a problem In the first instance you should discuss the matter with your unit coordinator, lecturer or tutor. However, if you do not feel comfortable approaching one of these people, or if you have a discussion and are not satisfied with the outcome, then you are encouraged to contact: Name: David Kronenberg Room: 428 Ph: (03) 6226 2714 email: david.kronenberg@utas.edu.au Discussions will be kept in the strictest confidence. You are always welcome to raise issues with the Head of School, Sue Hrasky, who you can email for an appointment (Sue.Hrasky@utas.edu.au). If you wish to pursue the matter further, a student advocate may be able to assist you. Information about the advocates is available at: http://acserv.admin.utas.edu.au/complaintsstudentadvocates.html 12

Student Services If you are experiencing difficulties with your studies or assignments, have personal or life planning issues, disability or illness which may affect your course of study, you should discuss these with your lecturer and/or one of the following Student Services staff as soon as possible: Learning Skills Adviser, Student Counsellor, Careers Adviser, and/or Disability Adviser. Student Services is located on the top floor in the Student Union/Association Building Hobart, Ground Floor of Student Centre Kerslake in Launceston or visit their website at: http://student.admin.utas.edu.au/services/ Should you require assistance in accessing the Library visit their website for more information: http://www.utas.edu.au/library/ International Services website provides information on the assistance available to international students: http://www.international.utas.edu.au The Learning Development website has a wide range of resources on study skills and learning strategies: http://www.utas.edu.au/learndev/ Unit Feedback The University of Tasmania, on a regular basis, evaluates its teaching and learning environment through the Student Evaluation of Teaching and Learning (SETL) system. The University values feedback from students and from time to time students will be asked to complete a SETL evaluation for a unit of study. For more information on SETL go to: http://www.studentcentre.utas.edu.au/setl/ Students with Disabilities - University and Faculty Equity Plans Goal 1 of the University of Tasmania Equity Plan provides for: An inclusive teaching and learning environment that values diversity, supports the pursuit of academic excellence and produces high quality education and employment results for all students and staff. The Faculty of Business Equity Plan facilitates the University Plan at an operational level and has developed an Action Plan. The Action Plan for Goal 1 lays down procedures to ensure that students have equal access to lecture and course materials. The School of Accounting and Corporate Governance complies with these procedures. Financial Planning Association of Australia (FPA) Student Membership Student Membership is currently available to any student currently undertaking fulltime studies in an appropriate financial planning, finance, business or commerce course. Application forms for student membership are subject to assessment and are available from: http://www.fpa.asn.au/fpa_content.aspx?doc_id=992/ Student members may access FPA services and facilities and they receive copies of the FPA Magazine. The requirements for membership are, that students should lodge an application form. Further information about membership and the FPA is available from the FPA internet site at: http://www.fpa.asn.au 13

Unit schedule Week Date Topic Readings / Resources 1 16 July 2012 Financial planning Cht. 1 & 4 environment. Compliance and Ethics 2 23 July 2012 Financial planning Cht. 1, 2 & 4 environment. Compliance and Ethics (cont.) 3 30 July 2012 Financial planning skills Cht. 2, 3, 5 & 19 4 6 August 2012 Financial Planning Skills & Cht. 3 & 9 Taxation 5 13 August 2012 Non-Superannuation Cht. 6, 7 & 8 Investments 6 15 August 2012 Non-Superannuation Cht. 6, 7 & 8 Investments (Cont.) 7 20 August 2012 Superannuation Cht. 16 Mid-Semester Break (3 September 7 September) 8 10 September 2012 Superannuation (Cont.) & Retirement. Cht. 16 Online test 9 17 September 2012 Insurance Cht. 14 & 15 10 24 September 2012 General insurance/credit & Cht. 15, 12 & 13 Home Ownership due 11 1 October 2012 Credit & Home Ownership Cht. 10 & 11 12 8 October 2012 Estate Planning Cht. 18 13 15 October 2012 Social Security Cht. 17 14