The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
provide wholesale advice in foreign exchange for at least two different clients.
In the course of the above, the candidate must:
comply with organisational policies and procedures, industry regulations and legislative requirements for foreign exchange
implement the plan, policy or transaction once agreed by each client.
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
Generic knowledge
organisational policies and procedures relating to providing wholesale advice in foreign exchange
characteristics of the economic environment, including:
impact of economic and business cycles
interest rates and exchange rates
inflation
government monetary and fiscal policy
operation of financial markets, including:
roles played by intermediaries and issuers
structure and interrelationships within the financial markets
interrelationship between industry sectors
key aspects of financial products, including:
types of financial investment products
specific inclusions and exclusions
types of financial risk products
fee structures and charging methodologies
Specialist knowledge
operation of foreign exchange markets, including:
market participants
roles played by intermediaries
key characteristics of foreign exchange products, including:
types of foreign exchange products
associated risks
alternative products, including derivatives
fee structures and charging methodologies
taxation issues in relation to foreign exchange products and markets in which they operate
key aspects of the legal environment, including disclosure and compliance covering:
role of representative and adviser
legal principles relating to key Acts relevant to performance evidence
relationship between ethics and regulatory requirements, including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest that may influence adviser’s recommendation
relevant industry standards and codes of conduct
regulators’ guidelines relevant to the provision of general or wholesale advice in foreign exchange
resolution procedures for internal and external complaints
theories of investment, portfolio management and management of investment and risk, including:
investment concepts and strategies
identification of types of risk
client risk profile
hedging concepts.