Assessor Resource

FNSCRD501A
Respond to personal insolvency situations

Assessment tool

Version 1.0
Issue Date: May 2024


This unit may be adapted to meet the specific needs of debt recovery and credit management in all financial sectors and work environments.

This unit describes the performance outcomes, skills and knowledge required to respond to personal insolvency and its impact on creditors, and determine actions to be undertaken in an insolvency situation.

This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Employability Skills

This unit contains employability skills.



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.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

interpret and apply the principles of personal insolvency to insolvency actions

accurately complete relevant documentation such as:

lodgement of claims and proof of debt

enforcement of security

enforcement of legal proceedings.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services or other organisations which offer credit facilities work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to relevant organisational policies and procedures and legislation.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Required skills

well-developed communication skills to:

determine and confirm personal insolvency situations and to clarify this using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform personal insolvency related calculations

use relevant software, spreadsheets and databases

access web-based information services

research and analysis for accessing, interpreting and managing personal information to determine insolvency risk

well-developed interpersonal skills to deal effectively with personalinsolvency stakeholders

judgement skills for making personal insolvency risk determinations

organisational skills, including the ability to plan and sequence work

Required knowledge

current knowledge of relevant legislative requirements

developments in the credit management sector and company policy

full range of credit options within legal requirements

relevant industry indicators

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Insolvency situations may include:

bankruptcy:

Part IX of the Bankruptcy Act

Part X of the Bankruptcy Act

court liquidations.

Potential risk factors may include:

Australian Bureau of Statistics (ABS) information

Australian Securities and Investments Commission (ASIC) information

commercial repercussions

commercial return versus outlay cost for recovery

industry trade bureau information

Insolvency and Trustee Service Australia (ITSA) information

voidable transactions.

Statutory and legislative requirements may include:

appropriate sections of the Tax Act

Bankruptcy Act

Bills of Sale and Other Instruments Act

Cheques and Payment Orders Act

Corporations Act

Fair Trading Acts

National Consumer Credit Protection Act

Partnership Act

Personal Property Securities Act

Privacy Act

Sales of Goods Act

Small Debts Court Act or equivalent.

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
Factors that may contribute to a possible personal insolvency situation and the risk factors to the creditor organisation are assessed 
Impact of actions that may be taken by a trustee or other third party is assessed before determining action 
Personal insolvency actions are evaluated in accordance with statutory rights and obligations 
Appropriate claims,and proof of debtare completed in accordance with statutory and regulatory requirements 
Causes for personal defaults are evaluated and procedures reviewed as a mechanism to prevent recurrence of loss, contributing factors and exposure 
Outcome of review is implemented as required 

Forms

Assessment Cover Sheet

FNSCRD501A - Respond to personal insolvency situations
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

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSCRD501A - Respond to personal insolvency situations

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:

Date:

Student signature:

Date: