Assessor Resource

FNSASICV513
Provide wholesale advice in derivatives

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to analyse client financial needs and objectives and provide wholesale advice ethically and professionally in derivatives, in compliance with industry regulations, codes of practice and current Australian Securities and Investments Commission (ASIC) and Australian financial services (AFS) licensing.

The unit applies to those who apply specialist knowledge and well-developed interpersonal, communication and self-management skills to perform a wholesale advisory role in derivatives.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant regulatory authorities to confirm those 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 and identify client’s needs and financial situation

1.1 Establish knowledge level, objectives, risk profile and goals of client

1.2 Explain range of products and services available to client according to client objectives and goals and respond to enquiries where required

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Analyse client’s financial and business details and assess client’s financial needs

1.5 Establish product risk profile of client

2. Develop strategies and solutions according to clients objectives, needs, financial situation and risk profile

2.1 Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs

2.2 Consult and clarify with client throughout analysis where required

2.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice where required

2.4 Assess and confirm product risk profile of client

2.5 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

2.6 Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client

3. Present strategies and solutions to client and determine financial plan, policy or transaction

3.1 Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements

3.2 Reinforce all relevant details, terms and conditions of product and/or service

3.3 Disclose impacts and possible risks of product or service

3.4 Provide supporting written documentation according to legislative requirements and organisational policies and procedures

3.5 Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction

3.6 Confirm that client understands proposed plan, policy or transaction

4. Agree to plan, policy or transaction and complete documentation

4.1 Obtain client’s formal agreement to proposed plan, policy or transaction

4.2 Explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing

4.3 Confirm that proposal and all other statutory and transactional documents are completed and signed off by client

4.4 Exchange copies of signed agreement and other required documentation

5. Provide arrangements for ongoing service, where requested by client

5.1 Confirm that type and form of ongoing service, including review of products or services, is agreed with client

5.2 Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

5.3 Implement procedures for agreed ongoing service according to organisational policies and procedures

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 derivatives 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 derivatives

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 derivatives

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

key characteristics of derivatives markets, including:

market participants

roles played by intermediaries

structure and interrelationships between the securities and derivatives sectors

key characteristics of derivatives products, including:

fee structures and charging methodologies

associated risks

investment options using derivatives products

key theories of investment, portfolio management and management of investment and risk, including:

investment concepts

investment strategies

identification of types of risk

client risk profile

taxation issues in relation to derivatives, financial products and markets in which they operate

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, 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 derivatives

resolution procedures for internal and external complaints

Australian Securities and Investments Commission (ASIC) market integrity rules

Australian Securities Exchange (ASX) 24 Operating Rules

elements of the Registered Representative Course and Examination program.

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

office equipment, technology, software and consumables used to provide wholesale advice in derivatives

clients requiring wholesale advice in derivatives

derivatives product information.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

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 and identify client’s needs and financial situation

1.1 Establish knowledge level, objectives, risk profile and goals of client

1.2 Explain range of products and services available to client according to client objectives and goals and respond to enquiries where required

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Analyse client’s financial and business details and assess client’s financial needs

1.5 Establish product risk profile of client

2. Develop strategies and solutions according to clients objectives, needs, financial situation and risk profile

2.1 Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs

2.2 Consult and clarify with client throughout analysis where required

2.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice where required

2.4 Assess and confirm product risk profile of client

2.5 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

2.6 Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client

3. Present strategies and solutions to client and determine financial plan, policy or transaction

3.1 Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements

3.2 Reinforce all relevant details, terms and conditions of product and/or service

3.3 Disclose impacts and possible risks of product or service

3.4 Provide supporting written documentation according to legislative requirements and organisational policies and procedures

3.5 Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction

3.6 Confirm that client understands proposed plan, policy or transaction

4. Agree to plan, policy or transaction and complete documentation

4.1 Obtain client’s formal agreement to proposed plan, policy or transaction

4.2 Explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing

4.3 Confirm that proposal and all other statutory and transactional documents are completed and signed off by client

4.4 Exchange copies of signed agreement and other required documentation

5. Provide arrangements for ongoing service, where requested by client

5.1 Confirm that type and form of ongoing service, including review of products or services, is agreed with client

5.2 Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

5.3 Implement procedures for agreed ongoing service according to organisational policies and procedures

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 derivatives 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 derivatives

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 derivatives

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

key characteristics of derivatives markets, including:

market participants

roles played by intermediaries

structure and interrelationships between the securities and derivatives sectors

key characteristics of derivatives products, including:

fee structures and charging methodologies

associated risks

investment options using derivatives products

key theories of investment, portfolio management and management of investment and risk, including:

investment concepts

investment strategies

identification of types of risk

client risk profile

taxation issues in relation to derivatives, financial products and markets in which they operate

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, 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 derivatives

resolution procedures for internal and external complaints

Australian Securities and Investments Commission (ASIC) market integrity rules

Australian Securities Exchange (ASX) 24 Operating Rules

elements of the Registered Representative Course and Examination program.

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

office equipment, technology, software and consumables used to provide wholesale advice in derivatives

clients requiring wholesale advice in derivatives

derivatives product information.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
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
Establish knowledge level, objectives, risk profile and goals of client 
Explain range of products and services available to client according to client objectives and goals and respond to enquiries where required 
Inform client about role of adviser and licensee or principal responsible for adviser’s conduct 
Analyse client’s financial and business details and assess client’s financial needs 
Establish product risk profile of client 
Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs 
Consult and clarify with client throughout analysis where required 
Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice where required 
Assess and confirm product risk profile of client 
Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs 
Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client 
Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements 
Reinforce all relevant details, terms and conditions of product and/or service 
Disclose impacts and possible risks of product or service 
Provide supporting written documentation according to legislative requirements and organisational policies and procedures 
Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction 
Confirm that client understands proposed plan, policy or transaction 
Obtain client’s formal agreement to proposed plan, policy or transaction 
Explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing 
Confirm that proposal and all other statutory and transactional documents are completed and signed off by client 
Exchange copies of signed agreement and other required documentation 
Confirm that type and form of ongoing service, including review of products or services, is agreed with client 
Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details 
Implement procedures for agreed ongoing service according to organisational policies and procedures 

Forms

Assessment Cover Sheet

FNSASICV513 - Provide wholesale advice in derivatives
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

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Assessor name:

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Assessment Record Sheet

FNSASICV513 - Provide wholesale advice in derivatives

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:

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