ROLE PLAY SUMMARY
DFS1  Presentation of Financial Services Guide (FSG) and Financial Planning Process (Personal Advice)
Name
Student ID
Date
Assessor
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ROLE PLAY OBJECTIVE
Presenting an FSG demonstrates the knowledge and skills required to satisfy compliance issues
when providing advice to a prospective retail client. This role play is specifically designed for
students to understand how to satisfy compliance obligations when restricted to delivering
General Advice as compared to Personal Advice to a retail client. A financial planner needs to
demonstrate a clear understanding of the boundary between delivering General Advice and
Personal Advice.
In this role play, the student is required to:
1. Present the Financial Services Guide (FSG) to a Retail Client, providing General Advice, and
2. Explain the Financial Planning Process followed in delivering Personal Advice
INSTRUCTIONS TO THE STUDENT
1. Please navigate this document using the ARROW Keys or TAB Key.
2. You can type only in designated fields.
3. Use this Role Play Summary Template to develop your role play summary. Type your script in the
space for “Develop your script here:”.
4. You can use the SPACE BAR to mark the check box  in the extreme right column for items that you
have covered in your script.
5. Submit the completed role play summary by email to training@ibi.edu.au
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ROLE PLAY SUMMARY
DFS1  Presentation of Financial Services Guide (FSG) and Financial Planning Process (Personal Advice)
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DEVELOPING CLIENT RAPPORT
 Greet warmly with eye contact
 Use open-ended questions to understand client’s financial planning needs
 Identify and discuss special needs (i.e. financial literacy, numeracy etc.), if any
 Confirm understanding of client’s financial planning needs
Develop your script here:
DELIVERY OF FINANCIAL SERVICES GUIDE
 Confirm if client has read and understood the FSG that was previously delivered (if
applicable)
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 Hand over FSG
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 Explain purpose of FSG
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 Explain ASIC penalties for non-delivery of FSG
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 Obtain signature on client declaration of receipt of FSG
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 Confirm if client has understood purpose of FSG. Any questions?
Develop your script here:
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DETAILS OF ADVISER AND AFSL HOLDER
 State AFSL Holder’s company name, address and licence number
 State Adviser’s full name and authorised representative number
 Explain relationship between AFSL Holder and Adviser
 Explain that details can be verified at the ASIC website www.asic.gov.au
 Confirm if client has understood details of adviser and AFSL holder. Any questions?
Develop your script here:
KIND OF ADVICE BEING PROVIDED (GENERAL v/s PERSONAL)
 Explain difference between General and Personal Advice
 State the kind of advice being provided
 Deliver General Advice Warning (NOT APPLICABLE FOR DFS 2,3,4)
 Obtain client signature on General Advice Warning (NOT APPLICABLE FOR DFS 2,3,4)
 Confirm if client has understood the kind of advice being provided. Any questions?
Develop your script here:
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ROLE PLAY SUMMARY
DFS1  Presentation of Financial Services Guide (FSG) and Financial Planning Process (Personal Advice)
SOURCES OF COMPLIANCE
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 Explain that the AFSL Holder and Adviser are required to comply with regulations laid
down by various bodies, in the interest of the client
 Common Law Duties and Fiduciary Duty
 Privacy Act
 Duty of Confidentiality to client
 Code of Ethics and ethical behaviour
 ASIC Regulatory Guides (RG146, RG164, RG175)
 AFSL internal guidelines
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 Confirm if client has understood the regulations under which the AFSL Holder and
Adviser operate. Any questions?
Develop your script here:
PRODUCTS THAT AFSL HOLDER AND ADVISER ARE AUTHORISED TO ADVISE ON
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 Explain the products that the AFSL Holder is licensed to deal in (with examples)
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 Explain the products that the Adviser is authorized to advise on (with examples)
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 Confirm if client has understood range of products that the AFSL Holder and Adviser
are authorized to provide advice on. Any questions?
Develop your script here:
TRADITIONAL ASSET CLASSES AND INVESTMENT AVENUES
 Explain the five traditional asset classes (with examples)
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 Explain the difference between asset classes and financial products (with examples)
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 Confirm if client has understood the major asset classes and investment avenues
available. Any questions?
Develop your script here:
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FEES, CHARGES AND ADVISER REMUNERATION
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 Explain different kinds, amounts and timing of fees as detailed in FSG
 Upfront fees
 Fee for service (hourly rates)
 Referral fees
 Advice review fees
 Trailing commissions
 Other fees (if applicable)
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 Explain that fees/commissions are shared between AFSL Holder and Adviser
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ROLE PLAY SUMMARY
DFS1  Presentation of Financial Services Guide (FSG) and Financial Planning Process (Personal Advice)
 Explain how the Adviser is remunerated by the AFSL Holder
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 Confirm if client has understood the fees, charges and adviser remuneration. Any
questions?
Develop your script here:
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SIX STEP FINANCIAL PLANNING PROCESS
 STEP 1: COLLECT. Explain process of collecting client’s financial and non-financial
information
 Explain elements of a Balance Sheet
 Explain elements of a Profit & Loss Statement
 Explain elements of a Cash Flow statement
 Explain elements of a client’s Risk Profile
 STEP 2: OBJECTIVES. Explain process of understanding client’s goals & objectives
 Explain how goals are to be SMART (Specific, Measurable, Achievable, Realistic,
Time-based)
 STEP 3: ANALYSE. Explain process of analysing client’s information and situation
 Explain Mismatch Risk
 Explain Financial Modelling
 Analysis of client’s Risk Profile (attitude to risk)
 Analysis of client’s Investment Goals (short and long term)
 Analysis of client’s Investment Capital (Balance Sheet)
 Analysis of client’s Free Cash Flow
 Analysis of client’s needs
 Development of strategic assumptions (inflation, interest rates, etc.)
 Research of financial products (industries, sectors, etc.)
 Development of financial plan strategy
 Development of preliminary financial plan
 STEP 4: PREPARE STATEMENT OF ADVICE (SoA). Explain purpose and process of
drafting the SoA
 STEP 5: IMPLEMENTATION. Explain process of implementation of client instructions on
SoA (product application process, transfer of funds, etc)
 STEP 6: REVIEW. Explain purpose of and types of review of client’s situation and
financial plan
 Confirm if client has understood the six step financial planning process. Any
questions?
Develop your script here:
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ROLE PLAY SUMMARY
DFS1  Presentation of Financial Services Guide (FSG) and Financial Planning Process (Personal Advice)
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BUSINESS STRUCTURES
 Explain the difference between having assets inside Super and outside Super
 Explain that there are different business structures under which assets can be held
 Explain the difference between assets held by a Sole Proprietor, Partnership, Company,
Trust and Self-Managed Super Fund
 Explain the types of co-ownership (joint tenants and tenants in common)
 Confirm if client has understood the business structures under which assets can be
held. Any questions?
Develop your script here:
TYPES OF RISKS
 Explain the types of risks associated with investing in general
 Market Risk
 Sector Risk
 Specific Asset Risk
 Liquidity Risk
 Currency Risk
 Political Risk
 Legislative Risk
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 Confirm if client has understood the types of risks involved with investing in general.
Any questions?
Develop your script here:
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TAX IMPLICATIONS
 Explain the types of tax associated with investments in general
 Income Tax
 Capital Gains Tax (CGT)
 Stamp Duty
 Goods and Services Tax (GST)
 Dividend Imputation
 Estate Tax
 Taxes inside and outside Super
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 Explain that the client should seek independent tax advice from a tax professional
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 Confirm if client has understood the types of tax involved with investments in
general and that independent tax advice should be sought. Any questions?
Develop your script here:
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ROLE PLAY SUMMARY
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USE OF PERSONAL INFORMATION
 Give the client a copy of the AFSL Holder’s Privacy Policy
 Explain that personal information collected is subject to Privacy laws and also the
internal Privacy Policy
 Explain that personal information may be released to 3rd Party only for
implementation of advice
 Explain the client can access their information on request
 Confirm if client has understood the Privacy Policy. Any questions?
Develop your script here:
DISPUTE RESOLUTION
 Explain that the client has access to the AFSL Holder’s Internal Dispute Resolution
Process
 Provide the contact telephone number for lodging disputes
 Explain that if the client remains dissatisfied with the resolution they can refer the
dispute to the Financial Ombudsman Service
 Provide contact details of the Financial Ombudsman Service
 Confirm if client has understood the Dispute Resolution Process. Any questions?
Develop your script here:
DOCUMENTS OF THE FINANCIAL PLANNING PROCESS
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 If not already done so, explain the purpose and timing of the documents involved in
the Financial Planning process.
 Financial Services Guide (FSG)
 General Advice Warning
 Limited Advice Warning
 Fact Finder
 Risk Profile Questionnaire
 Record(s) of Advice
 Statement of Advice
 Statement of Additional Advice
 Product Disclosure Statement(s)
 Authority to Proceed
 Review Agreement
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 Obtain signed declarations of the applicable documents
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 Confirm if client has understood the documents involved in the financial planning
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ROLE PLAY SUMMARY
DFS1  Presentation of Financial Services Guide (FSG) and Financial Planning Process (Personal Advice)
process and the declarations signed by them. Any questions?
Develop your script here:
CLOSING
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 Thank the client for their time
Develop your script here:
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