Assessor Resource

FNSFLT502
Facilitate customer awareness of the Australian financial system and markets

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to develop customer awareness of how the monetary and financial systems and markets operate in Australia, with the aim of enhancing basic consumer financial literacy.

It applies to individuals who use specialised knowledge to build relationships and provide financial counselling to contribute to the development of financial literacy in others.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

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. Explain to customers the function and role of Reserve Bank of Australia (RBA)

1.1 Communicate role of Reserve Bank of Australia (RBA) as Australia’s central bank and differences between RBA and other banking institutions to customers

1.2 Explain importance and effect of RBA’s monetary policy on the Australian economy and consumers’ personal finances to customers in plain language

1.3 Explain role of bank in maintaining financial stability and regulating the Australian Payments System to customers

2. Outline role of money and Australia's monetary base

2.1 Identify and discuss society’s motivations for holding money and various functions of money with customers

2.2 Explain impact of changes in supply of money to customers in plain language

3. Outline main features of the Australian financial markets

3.1 Identify and communicate purpose of financial markets and major markets in the Australian financial system to customers

3.2 Discuss role of banks and financial institutions as financial intermediaries with customers

3.3 Outline, in basic language, the role and function of short-term money market and types of products it deals in for customers

4. Provide information to customers about regulation of financial system

4.1 Identify role of independent regulation in the financial system and main regulators of financial system, and discuss their roles with customers

4.2 Provide examples of protection afforded individuals by regulators to customers

Evidence of the ability to:

explain clearly to customers the features and roles of the participants in the Australian financial system and markets

convert complex information into plain language that may be understood by a variety of people with minimal financial market knowledge.

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:

identify the functions of money and motivations for holding money

list instruments traded on the short-term money market

identify and explain the key features of the Australian financial system and markets, and state of the economic environment

describe key features of relevant industry codes of practice and legislation relating to privacy, consumer credit and protection, and debt recovery

identify and explain the roles and relationships between participants in the Australian financial services industry, including:

the Reserve Bank of Australia

banks and other financial intermediaries

key regulators.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial literacy field and include access to:

office equipment, technology, software and consumables

Australian financial system and markets information.

Assessors must satisfy NVR/AQTF assessor requirements.

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. Explain to customers the function and role of Reserve Bank of Australia (RBA)

1.1 Communicate role of Reserve Bank of Australia (RBA) as Australia’s central bank and differences between RBA and other banking institutions to customers

1.2 Explain importance and effect of RBA’s monetary policy on the Australian economy and consumers’ personal finances to customers in plain language

1.3 Explain role of bank in maintaining financial stability and regulating the Australian Payments System to customers

2. Outline role of money and Australia's monetary base

2.1 Identify and discuss society’s motivations for holding money and various functions of money with customers

2.2 Explain impact of changes in supply of money to customers in plain language

3. Outline main features of the Australian financial markets

3.1 Identify and communicate purpose of financial markets and major markets in the Australian financial system to customers

3.2 Discuss role of banks and financial institutions as financial intermediaries with customers

3.3 Outline, in basic language, the role and function of short-term money market and types of products it deals in for customers

4. Provide information to customers about regulation of financial system

4.1 Identify role of independent regulation in the financial system and main regulators of financial system, and discuss their roles with customers

4.2 Provide examples of protection afforded individuals by regulators to customers

Evidence of the ability to:

explain clearly to customers the features and roles of the participants in the Australian financial system and markets

convert complex information into plain language that may be understood by a variety of people with minimal financial market knowledge.

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:

identify the functions of money and motivations for holding money

list instruments traded on the short-term money market

identify and explain the key features of the Australian financial system and markets, and state of the economic environment

describe key features of relevant industry codes of practice and legislation relating to privacy, consumer credit and protection, and debt recovery

identify and explain the roles and relationships between participants in the Australian financial services industry, including:

the Reserve Bank of Australia

banks and other financial intermediaries

key regulators.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial literacy field and include access to:

office equipment, technology, software and consumables

Australian financial system and markets information.

Assessors must satisfy NVR/AQTF assessor requirements.
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
Communicate role of Reserve Bank of Australia (RBA) as Australia’s central bank and differences between RBA and other banking institutions to customers 
Explain importance and effect of RBA’s monetary policy on the Australian economy and consumers’ personal finances to customers in plain language 
Explain role of bank in maintaining financial stability and regulating the Australian Payments System to customers 
Identify and discuss society’s motivations for holding money and various functions of money with customers 
Explain impact of changes in supply of money to customers in plain language 
Identify and communicate purpose of financial markets and major markets in the Australian financial system to customers 
Discuss role of banks and financial institutions as financial intermediaries with customers 
Outline, in basic language, the role and function of short-term money market and types of products it deals in for customers 
Identify role of independent regulation in the financial system and main regulators of financial system, and discuss their roles with customers 
Provide examples of protection afforded individuals by regulators to customers 
Identify and discuss society’s motivations for holding money and various functions of money with customers 
Explain impact of changes in supply of money to customers in plain language 

Forms

Assessment Cover Sheet

FNSFLT502 - Facilitate customer awareness of the Australian financial system and markets
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

FNSFLT502 - Facilitate customer awareness of the Australian financial system and markets

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: