Learning to Produce a Financial Plan: Student Perceptions of Integrating Knowledge and Skills

Figures & Tables

Regulatory Guide 175 on features of process of providing good quality advice (ASIC 2012b, RG 175.222)

Australian Higher Education Curriculum on main functions of effective financial planning (FPEC and FPA of Australia 2012, p.9)

Define scope of advice and relevant circumstances
Investigate client’s relevant circumstances
Set prioritised, specific measurable goals
Consider potential strategies and options to meet objectives and needs
Consider all aspects of impact of advice such as tax and social security consequences
f. Ensure good communication so that advice and recommendations are understood
Make strategic and product recommendations appropriate to client circumstances

Collect required information and identify related facts by making required calculations and arranging client information for analysis.

Analyse: identify and consider issues, perform financial analyses, assess resulting information to develop strategies.

Synthesise information to develop and evaluate strategies to create a financial plan.

Comments	Frequency
More assistance/time required with developing strategies	29
More discussion of each section and coverage of all topics required before SOA due	29
More examples of SOA required	20
More feedback required	16
More examples and calculations required in class	15
More examples required	14
SOA template should be provided	12
More detailed explanations and examples required for SOA	11
Need more progress checks or more information on topics, such as Estate Planning and Insurance, after final progress check on investment strategies	7
More details needed to be covered in lectures	6
Would have liked to explore and discuss SOA in entirety in class	6
Need to be shown how to compile SOA	4
More practical questions need to be done	2
Need qualified financial or para-planner to explain SOA	2
Further explanation needed of concepts not covered in text	1
More consultation hours required	1
Site visit or movie of real practice required	1
	176

Employment		N	Mean	Std. Dev.	F	ρ
S1: Interrelationship of topic areas	PFP employment	227	3.35	.982	4.922 (2, 607)	.01
	No employment	267	3.61	.883
	Other employment	116	3.43	1.006
S2: Formulation of investment and retirement strategies	PFP employment	229	3.33	1.061	11.181 (2, 607)	.00
	No employment	265	3.75	.899
	Other employment	116	3.59	1.071
S3: Meeting a client’s short and long-term goals	PFP employment	228	3.32	.996	5.647 (2, 607)	.00
	No employment	266	3.61	.885
	Other employment	116	3.51	1.051

Professional six-step financial planning process (ISO 2005; FPSB 2006)	Australian Regulatory Guide 146 on Skill Requirements (ASIC 2012a, App. B, Table B, p. 54)
1. Establish and define the client-planner relationship.	1. Establish relationship with client
2. Gather client data, including goals.	2. Identify client objectives, needs financial situation
3. Analyse and evaluate client’s financial status.	3. Analyse client objectives, needs, financial situation and risk profile
4. Develop and present financial planning recommendations and/or alternatives.	4. Develop appropriate strategies and solutions
	5. Present appropriate strategies and solutions to client
	6. Negotiate financial plan with client
5. Implement the financial planning recommendations.	7. Coordinate implementation of agreed plan
5. Implement the financial planning recommendations.	8. Complete and maintain necessary documentation
6. Monitor the financial planning recommendations.	9. Provide ongoing service (at discretion of client)

Gender	Sex	Number	Mean	Std. Dev.	t	ρ
S1: Interrelationship of topic areas	Male	311	3.47	.929	-0.44 (605)	.66
S1: Interrelationship of topic areas	Female	296	3.50	.978	-0.44 (605)	.66
S2: Formulation of investment and retirement strategies	Male	310	3.39	1.045	-4.45 (605)	.00
S2: Formulation of investment and retirement strategies	Female	297	3.75	.952	-4.45 (605)	.00
S3: Meeting a client’s short and long-term goals	Male	311	3.37	.968	-2.57 (605)	.01
S3: Meeting a client’s short and long-term goals	Female	296	3.57	.964	-2.57 (605)	.01

Age		N	Mean	Std. Dev.	Median
S1: Interrelationship of topic areas	18-21	206	3.38	.984	3.00
	22-25	247	3.59	.962	4.00
	26-30	69	3.46	.901	4.00
	31-45	73	3.41	1.070	4.00
	46 +	14	3.79	.693	4.00
S2: Formulation of investment and retirement strategies	18-21	205	3.43	1.006	4.00
	22-25	246	3.76	1.041	4.00
	26-30	70	3.54	.958	4.00
	31-45	74	3.35	.957	3.50
	46 +	14	3.43	.938	3.50
S3: Meeting a client’s short and Long-term goals	18-21	205	3.43	.961	4.00
	22-25	247	3.61	.977	4.00
	26-30	70	3.40	.907	3.50
	31-45	73	3.22	1.070	3.00
	46 +	14	3.43	.938	4.00

Student demographic		Percentage of Sample
Gender	Male	51%
Gender	Female	49%
Age	<25 yrs	75%
Age	>25 yrs	25%
First Language	English	45%
International student		20%
Study mode	Full-time	75%
Study mode	Part-time	25%
Full-time work experience		56%
PFP-relevant work experience		38%

First Language		S1	S2	S3
English	N	273	272	272
	Mean	3.31	3.24	3.28
	Std. Dev.	0.98	1.07	1.02
	Median	3.00	3.00	3.00
Asian	N	130	129	129
	Mean	3.72	3.82	3.68
	Std. Dev.	0.8	0.84	0.84
	Median	4.00	4.00	4.00
Indian	N	38	38	38
	Mean	3.76	4.05	3.74
	Std. Dev.	0.94	0.7	0.72
	Median	4.00	4.00	4.00
Middle Eastern	N	30	30	30
	Mean	3.27	3.67	3.63
	Std. Dev.	1.11	1.06	1.07
	Median	3.00	4.00	4.00
Other	N	141	143	143
	Mean	3.55	3.79	3.55
	Std. Dev.	0.93	0.92	1.07
	Median	4.00	4.00	4.00

International and Local students		N	Mean	Std. Dev.	t	ρ
S1: Interrelationship of topic areas	Intl	126	3.62	.828	1.82 (610)	.05
S1: Interrelationship of topic areas	Local	486	3.45	.976	1.82 (610)	.05
S2: Formulation of investment and retirement strategies	Intl	126	3.87	.867	4.36 (610)	.00
S2: Formulation of investment and retirement strategies	Local	486	3.48	1.033	4.36 (610)	.00
S3: Meeting a client’s short and long-term goals	Intl	126	3.61	.867	1.91 (610)	.06
S3: Meeting a client’s short and long-term goals	Local	486	3.45	.990	1.91 (610)	.06