FINS 2643 Blogs

In 50-100 of YOUR OWN words, describe the key Knowledge and Insights you have learned and what
Questions and Thoughts remains. DO NOT COPY TEXTS or SLIDES. Doing this before the tutorial is
likely to enhance your tutorial discussion contribution.

Week 1 Reflection

From module 1, I was made aware that financial planning involves a process whereby a goal needs
to be set, and where data needs to be gathered and analysed before a plan can be implemented and
monitored. The module also emphasised the importance of a client-advisor relationship built on
trust - one where the advisor acts on behalf of the best interests of the client as stipulated under
FOFA. A thought that remains with me is what are the monetary and non-monetary repercussions
for a financial advisor who breaches this fiduciary duty to maintain the best interest of their clients?

Week 2 Reflection

From this week’s module, the implications of non-compliance were explained, whereby ASIC may
enforce action against a non-compliant advisor, as well as ban or limit their licence. I also learned
about the importance of getting to know the client through chats, interviews and questionnaires,
which aim to gather qualitative and quantitative information unique to the client. Advisors
ultimately do this to paint a better picture of the clients’ financial position, which can be assessed
through measures such as solvency and liquidity ratios. They will then offer a Statement of Advice
(SOA) which provides tailored recommendations for the client.