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 theories of investment, portfolio management and management of investment and risk including:
range of financial products
types of investment products including cash, fixed interest, property, equities and managed investments
types of financial risk products including risk insurance and derivatives
investment concepts
investment strategies
identification of types of risk
client risk profile
provide an analysis of advisory functions covering:
role of financial planner
participants in the advisory services market
range of services provided
financial planning process
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, 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)
provide an overview of the Australian taxation and social security systems covering:
relevant taxation laws and regulations
effects of taxation on particular financial products
effects of taxation on financial strategies of individuals and entities
explain theories of estate planning including allowable investments, enduring and non-enduring powers of attorney, and share purchase agreements
outline management and investment strategies relevant to estate planning
explain taxation laws and regulations relevant to estate planning.