Assessor Resource
FNSASICN503A
Provide Tier 1 personal advice in general insurance
Assessment tool
Version 1.0
Issue Date: May 2024
This unit is specifically designed to assist advisers dealing with retail clients but it may have wider application to wholesale clients.
The unit may be applied within organisations of various sizes and across a range of customer bases
This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including that administered by the Australian Securities and Investments Commission (ASIC). Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC.
Tier 1 general insurance products are defined by ASIC as:
personal sickness and accident insurance; and/or
general insurance products the licensee deems non-standard or complex
Personal sickness and accident insurance may be complex and the choices a client makes may have an increased potential to impact significantly the client's financial situation. Similarly, some general insurance products offered to clients are not straightforward or standard.
In both cases, consumers place a greater reliance on an adviser's competence for advice on these products and adviser training at the Tier 1 level is required.
Personal advice is defined by ASIC in its regulatory guide relating to the conduct and training of financial service product advisers. This unit requires the application of skills and knowledge to identify where the consumer is seeking advice based on their personal needs rather than general product advice and to follow the appropriate steps to provide this level of advice. It also requires clarification of the broker's role in providing this service.
Apart from the advisory skills, there is a substantial generic, insurance core and specialist general insurance product knowledge component that must be developed by the adviser as part of the requirements to meet ASIC training standards for Tier 1 personal advice.
You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)