Evidence of the ability to:
interpret and comply with industry regulations and codes of practice
analyse client’s needs, financial situation and risk profile, and prepare appropriate strategies or solutions relating to managed investments
provide accurate and ethical advice on managed investment products and services
implement the plan, policy or transaction once agreed by the client and complete documentation accurately.
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 generic and specialist knowledge requirements relevant to the products and activities in which advice is given.
Generic knowledge
analyse and provide an overview of the economic environment including:
characteristics and impact of economic and business cycles
interest rates and exchange rates
inflation
government monetary and fiscal policy
analyse and provide a detailed explanation of the operation of financial markets including:
roles played by intermediaries and issuers
structure and interrelationships within the financial markets
interrelationship between industry sectors
outline financial products, including:
concept of a financial product – general definition, and specific inclusions and exclusions
types of financial investment products
types of financial risk products.
Specialist advice
provide a detailed explanation of managed investment products including:
concept of managed investments
range of products offered under managed investments schemes, or a specific product offered under a scheme:
property trusts, real estate investment strategies, valuation techniques, property management
equity trusts, fixed interest trusts
serviced strata schemes
primary production schemes
film schemes
time-sharing schemes
types of risks associated with managed investment products
outline taxation issues in relation to managed investment products and markets in which they operate
discuss the legal environment including disclosure and compliance covering:
role of the representative or adviser
relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act
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
relevant industry standards and codes of conduct
regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements
complaints resolution procedures (external and internal)
explain theories of investment, portfolio management and management of investment and risk:
investment concepts
investment strategies
identification of types of risk
client risk profile.