Assessor Resource

FNSASIC301
Establish client relationship and analyse needs

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to interpret and comply with industry regulations and codes of practice when considering the characteristics of financial products and services for individual client needs.

It applies to individuals with excellent communication skills who are authorised as Australian Securities and Investments Commission (ASIC) registered Australian financial services licence (AFSL) holders to provide advice on deposit products, non-cash payment facilities and general insurance products at Tier 2 level.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client

1.1 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries in relation to products and services by explaining range available and associated fee and charging schedule

1.3 Inform client of role of adviser and licensee or principal responsible for adviser’s conduct, including procedures for complaints handling and circumstances in which they should be engaged

2. Identify client objectives, needs and financial situation

2.1 Employ range of communication and interpersonal skills to gather client personal, financial and business details

2.2 Identify client’s needs and product risk profile by encouraging expression of objectives and short-term, medium-term and long-term goals as relevant to product

2.3 Establish and confirm client expectations of cash flow and relevant taxation obligations

3. Analyse client objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client’s needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis for further clarification where necessary

3.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

3.4 Complete product risk profile of client that demonstrates correct application of ASIC generic and specialist knowledge relevant to products being offered

Evidence of the ability to:

work effectively with clients to collect relevant personal and/or business information that will enable identification of their objectives, needs, expectations, financial situation and risk profile

interpret and comply with relevant industry regulations and codes of practice requirements that relate to the provision of financial product advice

analyse client information and assess client risk profile to determine the characteristics of financial products and services relevant to client needs.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must satisfy the knowledge requirements relevant to the products and activities in which advice is given.

For general insurance, deposit products and non-cash payments and relevant first home saver account products the individual must:

explain the legal environment including disclosure and compliance covering:

role of the representative or adviser

relevant legal principles including the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act

the relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser’s recommendation

name relevant industry codes of practice and conduct

identify complaints resolution procedures (internal and external)

outline relevant ASIC regulatory guidelines.

For general insurance the individual must:

summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries, and identify insurance products including:

definition of an insurance product

conditions, exclusions and level of coverage of risk transfer products

types of insurance products

pricing of risk products

identify taxation issues relating to insurance products

explain advisory functions including:

role of the representative, broker or adviser

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

summarise the specific product knowledge for the general insurance products in which advice is given including:

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating and risk selection

reporting

product development

underwriting.

For deposit products and non-cash payment facilities the individual must:

name the types of deposit products and non-cash payment products

summarise the product characteristics.

For first home saver accounts the individual must:

name the types of first home saver account products including the range of accounts, associated risks and alternative products

summarise the product characteristics – eligibility and withdrawal, and government conditions

explain the taxation issues relating to first home saver accounts.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:

office equipment, technology, software and consumables

financial services product information.

Assessors must satisfy NVR/AQTF assessor requirements.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client

1.1 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries in relation to products and services by explaining range available and associated fee and charging schedule

1.3 Inform client of role of adviser and licensee or principal responsible for adviser’s conduct, including procedures for complaints handling and circumstances in which they should be engaged

2. Identify client objectives, needs and financial situation

2.1 Employ range of communication and interpersonal skills to gather client personal, financial and business details

2.2 Identify client’s needs and product risk profile by encouraging expression of objectives and short-term, medium-term and long-term goals as relevant to product

2.3 Establish and confirm client expectations of cash flow and relevant taxation obligations

3. Analyse client objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client’s needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis for further clarification where necessary

3.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

3.4 Complete product risk profile of client that demonstrates correct application of ASIC generic and specialist knowledge relevant to products being offered

Evidence of the ability to:

work effectively with clients to collect relevant personal and/or business information that will enable identification of their objectives, needs, expectations, financial situation and risk profile

interpret and comply with relevant industry regulations and codes of practice requirements that relate to the provision of financial product advice

analyse client information and assess client risk profile to determine the characteristics of financial products and services relevant to client needs.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must satisfy the knowledge requirements relevant to the products and activities in which advice is given.

For general insurance, deposit products and non-cash payments and relevant first home saver account products the individual must:

explain the legal environment including disclosure and compliance covering:

role of the representative or adviser

relevant legal principles including the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act

the relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser’s recommendation

name relevant industry codes of practice and conduct

identify complaints resolution procedures (internal and external)

outline relevant ASIC regulatory guidelines.

For general insurance the individual must:

summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries, and identify insurance products including:

definition of an insurance product

conditions, exclusions and level of coverage of risk transfer products

types of insurance products

pricing of risk products

identify taxation issues relating to insurance products

explain advisory functions including:

role of the representative, broker or adviser

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

summarise the specific product knowledge for the general insurance products in which advice is given including:

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating and risk selection

reporting

product development

underwriting.

For deposit products and non-cash payment facilities the individual must:

name the types of deposit products and non-cash payment products

summarise the product characteristics.

For first home saver accounts the individual must:

name the types of first home saver account products including the range of accounts, associated risks and alternative products

summarise the product characteristics – eligibility and withdrawal, and government conditions

explain the taxation issues relating to first home saver accounts.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:

office equipment, technology, software and consumables

financial services product information.

Assessors must satisfy NVR/AQTF assessor requirements.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Use range of communication and interpersonal skills to establish knowledge level of client 
Respond to enquiries in relation to products and services by explaining range available and associated fee and charging schedule 
Inform client of role of adviser and licensee or principal responsible for adviser’s conduct, including procedures for complaints handling and circumstances in which they should be engaged 
Employ range of communication and interpersonal skills to gather client personal, financial and business details 
Identify client’s needs and product risk profile by encouraging expression of objectives and short-term, medium-term and long-term goals as relevant to product 
Establish and confirm client expectations of cash flow and relevant taxation obligations 
Undertake assessment of client’s needs, using all information gathered and taking into account client’s product expectations and specific needs 
Consult client throughout analysis for further clarification where necessary 
Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required 
Complete product risk profile of client that demonstrates correct application of ASIC generic and specialist knowledge relevant to products being offered 

Forms

Assessment Cover Sheet

FNSASIC301 - Establish client relationship and analyse needs
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSASIC301 - Establish client relationship and analyse needs

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: