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. Identify compliance requirements | 1.1 Identify and document statutory, legislative and regulatory requirements relevant to brokerage 1.2 Identify and analyse compliance requirements for implementation 1.3 Maintain up-to-date checklist which includes reporting requirements, time limits and all other statutory operational requirements, and ensure it is observed 1.4 Identify, regularly update and collate accurate, reliable and up-to-date information on compliance requirements in form suitable for analysis |
2. Evaluate compliance factors and assess inherent risk | 2.1 Identify impact of requirements on brokerage 2.2 Identify and evaluate non-compliance likelihood and intensity in key risk areas in brokerage 2.3 Evaluate compliance risk factors within context of organisation’s mitigating capabilities |
3. Establish compliance strategies | 3.1 Identify compliance strategy and implementation stakeholder parties 3.2 Identify methods of systematising compliance strategy 3.3 Review cost–benefit variances of proposed compliance strategy 3.4 Identify and review existing strategies 3.5 Identify and assess alternate strategies in consultation with stakeholders 3.6 Select most appropriate strategy to ensure continued compliance |
4. Establish resource requirements for compliance purposes | 4.1 Identify and source technical resources required for compliance purposes 4.2 Determine personnel requirements for operation of compliance program and assign or recruit appropriate staff where required 4.3 Identify and document compliance requirements for each role in organisation 4.4 Identify minimum training standards for all personnel and develop training program in conjunction with appropriate personnel 4.5 Implement staff supervision and monitoring processes to ensure staff compliance with requirements |
5. Implement and maintain compliance systems | 5.1 Ensure regulatory requirements are incorporated into operational procedures 5.2 Develop documentation and communication systems that ensure compliance 5.3 Review practices and procedures to ensure compliance 5.4 Identify non-compliance practices and adopt corrective measures 5.5 Identify and promptly attend to irregularities, non-compliance and breaches 5.6 Consult staff to test integrity of systems 5.7 Identify areas for improvement to systems through consultation with staff and make recommendations to personnel as appropriate 5.8 Document process for reporting of breaches of laws and regulations 5.9 Ensure all documentation, operational and communication systems are implemented and checked for viability 5.10 Integrate new compliance requirements into work systems as required |
6. Ensure statutory reporting requirements are met | 6.1 Identify reporting requirements and establish reporting timeframes 6.2 Ensure that organisational guidelines for preparing statutory reports are accessed and made available to relevant staff 6.3 Prepare statutory reports according to organisational guidelines and statutory requirements 6.4 Check statutory reports for compliance 6.5 Confirm submission of statutory reports with appropriate parties |
Evidence of the ability to:
undertake research to identify and interpret compliance requirements for an insurance broking business, including statutory reporting
develop strategies to manage compliance risks within the organisation
design compliance systems and related documentation to ensure compliance is integrated into work practices
complete internal compliance audits and take corrective action where required.
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:
illustrate and explain the process for design and execution of the internal audit system for the broking organisation against industry and legislative compliance requirements
outline the management accountabilities relating to the operation of the insurance broking business to meet regulatory requirements
outline the process for diagnosing compliance risks within an insurance brokerage and the design of strategies to mitigate identified risks.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance broking field of work and include access to:
common office equipment, technology, software and consumables
organisational records
organisational policy and procedures.
Assessors must satisfy NVR/AQTF assessor requirements.