To complete the unit requirements safely and effectively, the individual must satisfy generic, core 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.
Core insurance knowledge
explain the operation of insurance markets including:
definition of insurance product
characteristics and participants of the Australian insurance market
roles played by intermediaries
describe types of insurance products including risk insurance products, investment life insurance products and general insurance products
explain the following aspects of insurance products:
conditions, exclusions and levels of coverage of risk transfer products
pricing
outline taxation issues in relation to insurance products and markets
describe advisory functions including:
role of insurance adviser, broker or agent
participants in the insurance advisory services market
range of services provided
profile and financial information of the client
appropriateness of a risk assessment
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, Insurance Contracts Act, Life Insurance 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, 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.
Specialist knowledge
outline the following aspects of life insurance:
types and classes of life insurance products and policies
standard cover and relevant deviations
product development
policy wordings
underwriting
insurance claims
premium rating and risk assessment
investment strategy
investment component of life insurance products.