a)

I)

the FPIA definition of financial planning and the concepts embodied in this definition.

ii)

the current state of the financial planning industry within the context of its historical development in New Zealand.

iii)

the market for financial planning services including the major providers and users of these services.

iv)

the importance of ethics in the industry and the FPIA Code of Professional Ethics.

v)

FPIA Standards of Professional Practice.

b)

I)

key steps involved in the financial planning process.

ii)

quantitative and qualitative data the advisers needs to obtain from the client.

iii)

the process for collecting data from the client and the steps to be taken to ensure it is appropriate.

iv)

key steps involved in meeting a client’s income and protection needs.

v)

issues involved in selecting products and structuring an investment portfolio to meet a client’s needs and objectives.

vi)

components of a financial plan.

vii)

importance of ongoing monitoring and review of a financial plan.

viii)

law applicable to the provision of a financial plan.

ix)

"prudent person" rule and its implications.

x)

importance of ongoing training, research and computer services in supporting the financial planning process.

I)

the marketing process.

ii)

relationship building considerations.

iii)

psychological considerations.

iv)

interviewing skills.

a)

I)

the law of supply and demand.

ii)

how market prices are determined.

b)

I)

the importance and determination of interest rates and exchange rates.

ii)

the relationship between returns from growth assets and interest rates.

iii)

the role and influence of the major participants in the economy.

c)

I)

fundamental and technical forecasting techniques.

ii)

the nature and implications of business cycles.

iii)

likely future scenarios given a specific set of economic indicators.

a)

I)

reasons for investment.

ii)

types of investment.

b)

I)

measurement of return.

ii)

income and growth returns.

iii)

compound, simple, nominal, effective and real rates of return.

iv)

present and future values.

c)

I)

definition and measurement of risk - understanding volatility.

ii)

the degree of risk associated with different types of investments.

iii)

firm specific, industry specific, market and international risk.

iv)

the use of diversification to reduce risk.

v)

gearing and its impact on risk.

vi)

determination of client risk profile and the use of appropriate investment strategies for particular clients.

vii)

optimisation techniques and their use in reducing risk in a portfolio.

d)

I)

the efficient frontier.

ii)

difficulties and dangers associated with economic forecasting and market timing.

iii)

asset allocation.

iv)

the process of developing an efficient investment strategy.

a)

I)

the purpose of and participants in the sharemarket.

ii)

different types of sharemarket investment.

iii)

how returns on shares are measured.

iv)

buying and selling of shares.

v)

factors affecting share prices.

b)

I)

the purpose of and participants in the fixed interest securities market.

ii)

different types of fixed interest investments.

iii)

how returns on fixed interest investments are measured.

iv)

trading and pricing of fixed interest investments.

v)

factors affecting the fixed interest market.

c)

I)

purpose of and participants in the property market.

ii)

different types of property investments.

iii)

how returns from property investment are measured.

iv)

buying and selling of property.

v)

factors affecting property prices.

d)

I)

what the other financial markets in New Zealand are and their use in managing investment risk.

a)

I)

the purpose and types of managed investments within the New Zealand context.

ii)

features and benefits of managed investments.

iii)

relative advantages and disadvantages of the managed investment alternatives.

iv)

the nature, functioning and use of unit trusts.

v)

the nature, functioning and use of insurance bonds.

vi)

the use of specialist as compared to balanced funds.

b)

I)

factors that need to be considered when selecting a managed investment.

ii)

characteristics and potential problems with the top-down, bottom-up, special situation and passive approaches to funds management.

iii)

key considerations in the evaluation of managed investment research.

iv)

the process of developing a portfolio of managed investments.

a)

I)

concepts of taxation.

ii)

concepts of income and expenditure

iii)

taxation of individuals, partnerships, trusts and companies

iv)

taxation treatment of investments and investment vehicles

v)

purpose of and key steps in the process of taxation planning.

vi)

the effect of current and proposed taxation legislation on tax planning.

vii)

practical taxation considerations in the development of a financial plan.

b)

I)

purpose of and key steps in the process of estate planning.

ii)

concepts of estate planning.

iv)

practical estate planning considerations in the development of a financial plan.

v)

purpose and use of trusts in estate planning.

vi)

wills and enduring powers of attorney.

I)

the need for retirement planning.

ii)

methods of providing for income in retirement.

iii)

principles behind and the operation of National Superannuation and other welfare benefits.

iv)

financial planning for retired persons.

v)

features of superannuation schemes.

vi)

the future of retirement planning: the Todd Task Force and the Accord.

a)

I)

the purpose of life insurance and its role within financial planning.

ii)

steps involved in determining the degree of life cover required.

iii)

differences between traditional and unbundled insurance cover.

b)

I)

the purpose of disability insurance and its role within financial planning.

ii)

steps involved in determining the degree of disability cover required.

iii)

main features of disability insurance.

c)

Medical Insurance - its purpose and role within financial planning.

d)

Fire & General Insurance - its purpose and role within financial planning.

e)

Personal Insurance in a Business Environment - its purpose and role within financial planning.