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 securities
provide accurate and ethical advice on securities 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 was 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 of securities markets including:
market participants
roles played by intermediaries
explain characteristics of types of products including:
range of securities
associated risks
investment options using securities product
alternative products including derivatives
explain theories of investment, portfolio management and management of investment and risk covering:
investment concepts
investment strategies
identification of types of risk
client risk profile
outline taxation issues in relation to securities, financial 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 covering 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, if relevant, internal)
stockbroking competency standards (where relevant)
ASX Operating Rules (where relevant)
ASIC market integrity rules.