Question 1

How can the financial planner/licensee and/or product issuer use the information included in RG 168 Disclosure: Product Disclosure Statements (and other disclosure obligations) to assist in their operations including dealings with clients?

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Question 2

Given that there is no set rules as to the length of the statements of advice (SOA) provided by the financial planner to the client, discuss relevant issues that need to be considered by the planner in the preparation of the SOA.

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Question 3

Provide an outline of the best interest obligations for financial planners adopted as part of the government FOFA reforms into the financial planning industry.

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Question 4

Briefly discuss the type of language that should be used by the financial planner when discussing issues with clients and in the formal preparation of the SOA.

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Question 5

Discuss the form and extent of remuneration disclosure that applies to financial advisers.

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Question 6

In what circumstances can a record of advice (ROA) document be prepared for a financial planning client and what format does the financial planner need to follow in its preparation?

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Question 7

(a) Using examples, differentiate between a comprehensive financial plan and a limited advice plan as the 2 principal types of SOA documents the financial planner is expected to provide to clients.
(b) What is an alternative SOA document to those discussed above that is sometimes prepared by the financial planner in particular circumstances?

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Question 8

As an industry seeking to refer to its participants as professionals in their field, with a high level of ethical and moral principles, provide examples as to how the key attribute of trust is important in the client - adviser relationship in the financial planning industry.

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Question 9

Typically the financial planner will need to make a number of assumptions in the preparation of a comprehensive and detailed SOA. Provide details as to some of the assumptions used by the financial planner including the basis for the relevant amounts.

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Question 10

Discuss the importance of maintaining security over client records and what levels of internal controls a financial planning firm could maintain to ensure such levels of security.

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Quiz 15: Development of a Statement of Advice