Assessor Resource

FNSFMK510
Prepare trading strategies for clients

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to assess client needs and prepare appropriate trading strategies.

It applies to individuals who manage relationships and use specialised knowledge and analytical skills to make judgements and prepare customised solutions.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

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. Analyse client position, risks and needs

1.1 Obtain and confirm client needs and objectives

1.2 Obtain and analyse market and product data relevant to client needs and objectives

1.3 Analyse market opportunities for client using appropriate analytical tools and methodologies

1.4 Identify and justify trading opportunities for client as required

2. Develop trading strategy and manage risk in transactions

2.1 Identify risks in strategy to both client and organisation

2.2 Discuss risks with client and appropriate organisational personnel and make decision on whether to proceed or adjust strategy

2.3 Finalise strategy in accordance with organisation’s policy, procedures and the legal and regulatory framework

3. Execute trading strategies for client

3.1 Agree and set entry and exit levels and conditions for proposed strategy

3.2 Identify appropriate order types or limit types for executing strategy and confirm order details with client

3.3 Undertake ongoing monitoring for client, including adjusting trading strategy where warranted

Evidence of the ability to:

apply compliance requirements for organisational and industry financial trading procedures

analyse needs to develop appropriate strategies to suit circumstances using appropriate tools and techniques.

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:

compare and contrast financial products that can be traded

outline a range of analytical tools and methodologies that can be used to analyse market opportunities, including quantitative and qualitative approaches

determine the relevant financial risk management factors at a client and organisational level, and discuss how to incorporate these into the strategy

describe appropriate financial trading reporting procedures and documentation

detect which relevant financial trading systems need to be used for strategy developed.

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

office equipment, technology, software and consumables

integrated financial software system and data.

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. Analyse client position, risks and needs

1.1 Obtain and confirm client needs and objectives

1.2 Obtain and analyse market and product data relevant to client needs and objectives

1.3 Analyse market opportunities for client using appropriate analytical tools and methodologies

1.4 Identify and justify trading opportunities for client as required

2. Develop trading strategy and manage risk in transactions

2.1 Identify risks in strategy to both client and organisation

2.2 Discuss risks with client and appropriate organisational personnel and make decision on whether to proceed or adjust strategy

2.3 Finalise strategy in accordance with organisation’s policy, procedures and the legal and regulatory framework

3. Execute trading strategies for client

3.1 Agree and set entry and exit levels and conditions for proposed strategy

3.2 Identify appropriate order types or limit types for executing strategy and confirm order details with client

3.3 Undertake ongoing monitoring for client, including adjusting trading strategy where warranted

Evidence of the ability to:

apply compliance requirements for organisational and industry financial trading procedures

analyse needs to develop appropriate strategies to suit circumstances using appropriate tools and techniques.

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:

compare and contrast financial products that can be traded

outline a range of analytical tools and methodologies that can be used to analyse market opportunities, including quantitative and qualitative approaches

determine the relevant financial risk management factors at a client and organisational level, and discuss how to incorporate these into the strategy

describe appropriate financial trading reporting procedures and documentation

detect which relevant financial trading systems need to be used for strategy developed.

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

office equipment, technology, software and consumables

integrated financial software system and data.

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
Obtain and confirm client needs and objectives 
Obtain and analyse market and product data relevant to client needs and objectives 
Analyse market opportunities for client using appropriate analytical tools and methodologies 
Identify and justify trading opportunities for client as required 
Identify risks in strategy to both client and organisation 
Discuss risks with client and appropriate organisational personnel and make decision on whether to proceed or adjust strategy 
Finalise strategy in accordance with organisation’s policy, procedures and the legal and regulatory framework 
Agree and set entry and exit levels and conditions for proposed strategy 
Identify appropriate order types or limit types for executing strategy and confirm order details with client 
Undertake ongoing monitoring for client, including adjusting trading strategy where warranted 

Forms

Assessment Cover Sheet

FNSFMK510 - Prepare trading strategies for clients
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

FNSFMK510 - Prepare trading strategies for clients

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: