MP 532004

ISO/CD 21551 ISO/CD 21555 ISO/CD 15551 ISO/CD 23449

MP 53
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Miscellaneous Publication
Personal financial planning
Part 1: Definitions, processes and practices Part 2: Requirements for competence of a Personal Financial Planner Part 3: Ethics and experience

This Miscellaneous Publication was prepared in conjunction with Committee OB-015, Personal Financial Planning. It was approved on behalf of the Council of Standards Australia on 11 March 2004 and published on 13 April 2004.

The following are represented on Committee OB-015: CPA Australia Consumers Federation of Australia
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Financial Planning Association of Australia Institute of Chartered Accountants in Australia National Finance Industry Training Advisory Body National Insurance Brokers Association of Australia Securities Institute

Keeping Standards up-to-date

Standards are living documents which reflect progress in science, technology and systems. To maintain their currency, all Standards are periodically reviewed, and new editions are published. Between editions, amendments may be issued. Standards may also be withdrawn. It is important that readers assure themselves they are using a current Standard, which should include any amendments which may have been published since the Standard was purchased. Detailed information about Standards can be found by visiting the Standards Web Shop at www.standards.com.au and looking up the relevant Standard in the on-line catalogue. Alternatively, the printed Catalogue provides information current at 1 January each year, and the monthly magazine, The Global Standard, has a full listing of revisions and amendments published each month. Australian StandardsTM and other products and services developed by Standards Australia are published and distributed under contract by SAI Global, which operates the Standards Web Shop. We also welcome suggestions for improvement in our Standards, and especially encourage readers to notify us immediately of any apparent inaccuracies or ambiguities. Contact us via email at mail@standards.org.au, or write to the Chief Executive, Standards Australia International Ltd, GPO Box 5420, Sydney, NSW 2001. .

MP 532004

Miscellaneous Publication
This is a free 9 page sample. Access the full version at http://infostore.saiglobal.com.

Personal financial planning

Part 1: Definitions, processes and practices Part 2: Requirements for competence of a Personal Financial Planner Part 3: Ethics and experience

First published as MP 532004.

COPYRIGHT
Standards Australia International All rights are reserved. No part of this work may be reproduced or copied in any form or by any means, electronic or mechanical, including photocopying, without the written permission of the publisher. Published by Standards Australia International Ltd GPO Box 5420, Sydney, NSW 2001, Australia
ISBN 0 7337 5856 8

MP 532004

ii

PREFACE
This Miscellaneous Publication was prepared in conjunction with Standards Australia Committee OB-015, Personal Financial Planning. This Miscellaneous Publication consists of three parts MP 53.1-2004 Definitions, processes and practices MP 53.2-2004 Requirements for competence of a Personal Financial Planner MP 53.3-2004 Ethics and experience Except where noted in their Prefaces, they are identical with Committee Draft Standards published by the International Organization for Standardization (ISO), which were prepared by ISO Technical Committee TC 222 Personal Financial Planning.
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ISO is a worldwide federation of national standards bodies (ISO members). The work of preparing International Standards is normally carried out through ISO technical committees. Each member body interested in a subject for which a technical committee has been established has the right to be represented on that committee. International organisations, governmental and non-governmental, in liaison with ISO, also take on the work. This Miscellaneous Publication has been issued in order to keep the Australian personal financial planning industry informed of the development with the International Standard which is due to be published in 2005. Feedback from the members of TC-222, including Australia, is contained in Annex ZA to each part. Standards Australia invites further feedback and comment on this document from the industry. This feedback can be sent by post, email or electronically as follows: By post: The Project Manager Management & Business Sector Personal Financial Planning Standards Australia GPO Box 5420 Sydney NSW 2001 By email: PFP@standards.org.au Electronically: If you are using an electronic copy of this Miscellaneous Publication, click on the envelope symbol next to the Clause you wish to comment on and you will be directed to our online database.

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Part 1: Definitions, processes and practices

ISO/CD 21551

MP 53.12004

MP 53.12004

ii

PREFACE
This Miscellaneous Publication was prepared in conjunction with Standards Australia Committee OB-015, Personal Financial Planning. This Miscellaneous Publication is identical with (except for the feedback in the Annex ZA) with International Committee Draft Standard ISO/CD 21551, Definition and process of personal financial planning issued by the International Organisation for Standardisation (ISO), which was prepared by ISO Technical Committee TC 222 and Working Group WG1, Personal Financial Planning Definitions, Process and Practice. ISO is a worldwide federation of national standards bodies (ISO members). The work of preparing International Standards is normally carried out through ISO technical committees. Each member body interested in a subject for which a technical committee has been established has the right to be represented on that committee. International organisations, governmental and non-governmental, in liaison with ISO, also take on the work. This Miscellaneous Publication has been issued in order to keep the Australian personal financial planning industry informed of the development with the International Standard which is due to be published in 2005. Feedback from the members of TC-222, including Australia, is contained in Annex ZA. Standards Australia invites further feedback and comment on this document from the industry. This feedback can be sent by post, email or electronically as follows: By post: The Project Manager Management & Business Sector Personal Financial Planning Standards Australia GPO Box 5420 Sydney NSW 2001 By email: PFP@standards.org.au Electronically: If you are using an electronic copy of this Miscellaneous Publication, click on the envelope symbol next to the Clause you wish to comment on and you will be directed to our online database.

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iii

MP 53.12004

CONTENTS
Page Introduction............................................................................................................................ iv 1 2 3 4 5 Scope ...............................................................................................................................1 Normative references .......................................................................................................1 Terms and definitions .......................................................................................................1 Process of personal financial planning..............................................................................2 Practice management .......................................................................................................4

Annex ZA (informative) International comments on Draft Standard .......................................6

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MP 53.12004

iv

INTRODUCTION
The certification bodies will have the responsibility of assessing whether personal financial planners meet the requirements of this International Standard. Whilst self declaration is permitted, Planners are encouraged to use external certification bodies. These certification bodies can provide third party endorsement, which many consumer bodies will welcome. The National Standards Body (this is the national member of ISO) can provide a list of those professional bodies that offer certification.

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MP 53.12004

STANDARDS AUSTRALIA Miscellaneous Publication Personal financial planning Part 1: Definitions, processes and practices
1 Scope

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This International Standard defines personal financial planning and the personal financial planning process and service.

Normative references

The following referenced documents are indispensable for the application of this document. For dated references, only the edition cited applies. For undated references, the latest edition of the referenced document (including any amendments) applies. ISO 17024:2003, General requirements for bodies operating certification systems of persons

Terms and definitions

For the purposes of this document, the terms and definitions given in ISO 17024:2003 and the following apply. 3.1 Individual An individual is a person or an economic group, also referred to as a consumer. 3.2 Economic group An economic group is a group of persons who have a shared interest in achieving the outcome of the financial planning process and achieving the personal financial goals. 3.3 Client A client of a Personal Financial Planner is an individual who has accepted the terms of engagement as described in 4.1.3(c) by entering into a contract for services. 3.4 Financial risk tolerance Financial risk tolerance is the extent to which an individual chooses to risk experiencing a less favourable financial outcome in the pursuit of a more favorable financial outcome. 3.5 Remuneration Monies received in exchange for providing a Financial Planning Service to a client.

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Standards Australia

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MP 53-2004, Personal financial planning Part 1: Definitions, processes and practices; Part 2: Requirements for competence of a Personal Financial Planner; Part 3: Ethics and experience

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