Assessor Resource

FNSFMK511A
Apply limits when trading

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to job roles in the financial markets trading sector.

This unit describes the performance outcomes, skills and knowledge required to identify, respond to and periodically review trading limits set by an organisation.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so 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:

identify and monitor financial trading limits using a range of data sources

deal effectively and promptly with financial trading limit breaches following all required industry and organisational policies and procedures

access and comply with relevant legislation affecting financial trading.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services 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 financial markets information.

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 workplace projects and 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 organisational trading limitrequirements, using questioning and active listening as required

provide advice on trading limits to others

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

apply statistical techniques

use spreadsheets and databases

useinternet information

highly developed research and analysis for accessing, interpreting and managing complex information

well-developed literacy skills to:

read and interpret organisational and industry information

identify economic environmental factors which affect financial services and markets

produce trading information

judgement skills for forming recommendations in complex situations

organisational skills, including the ability to plan and sequence work and work effectively in a constantly changing environment

self-management skills for complying with ethical, legal and procedural requirements

Required knowledge

the economic environment, including:

characteristics and impacts of economic and business cycles

government monetary and fiscal policies

interest rates, exchange rates, inflation

data collection and management systems

organisational guidelines, goals and objectives

structure and inter-relationships within the financial markets

theories of investment, portfolio management and management of investment risk

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.

Types of trading limits in an organisation may include consideration of:

outright risk

spread risk

stop loss risk (including slippage)

Value at Risk (VAR).

Relevant personnel may include:

colleagues

compliance monitoring personnel

managers, supervisors.

Approving limit breaches may involve:

breaches of limits being reported immediately by the dealer to line management. The escalation process for reporting and managing limit excesses should be clear and effective.

Organisational guidelines may include:

business rules of the exchange

credit limit

deal limit

industry association codes of conduct

loss limit

organisational codes of conduct

relevant regulations and legislation.

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
Various types of trading limits in an organisation are accessed and accurately interpreted 
The process for establishing trading limits in the organisation is identified 
Organisational limits are documented and the process for communicating to relevant personnel is determined 
The process for identifying trading breaches, including by whom, how and when and for reporting them to relevant personnel is established and complied with 
The process for approving limit breaches and the person responsible for that process is determined 
The organisational process for dealing with breaches for which there is no approval is identified 
Consequences of a breach are managed according to organisational guidelines 
The process for determining the allocation of risk in the organisation is known and consistently applied 
Factors that are critical in determining limits are identified and analysed 
Relevant personnel are promptly informed of changes in trading limits 
Changes to trading limits are communicated to relevant staff using relevant organisational processes 

Forms

Assessment Cover Sheet

FNSFMK511A - Apply limits when trading
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

FNSFMK511A - Apply limits when trading

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: