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 knowledge
outline the operation and management of the superannuation industry including:
characteristics and structure of a superannuation product
roles played by intermediaries and issuers
types of superannuation products
fee structures including administration and management costs
types of contribution
annuities and pensions, allocated pensions and income stream products
associated risks
trustees appointment, duties and responsibilities
structure of superannuation plans management and administration of superannuation products
preservation rules
investment strategies within superannuation funds including investment concepts and strategies
restrictions on investment strategies
outline taxation issues in relation to superannuation financial products and markets in which they operate covering:
impact on investment earnings
employer and employee contributions
benefit payments and expenses
tax deductions
capital gains tax treatment
roll-overs
reasonable benefit limits
superannuation surcharge
social security pension eligibility
retirement planning
death benefits
franking credits
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, Superannuation Industry (Supervision) 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)
trustee rules
explain theories of investment, portfolio management and management of investment and risk:
investment concepts
investment strategies
identification of types of risk
client risk profile
outline key requirements of the following:
Retirement Savings Account Act (RSA)
Superannuation Industry (Supervision) Act (SIS)
Superannuation Guarantee Act and other relevant legislation
Superannuation Contribution Tax (Assessment and Collection) Act.