Assessor Resource

FNSINC601
Apply economic principles to work in the financial services industry

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to apply broad principles of financial economics that underpin a range of tasks and functions in the financial services industry. It includes understanding how financial instruments are priced in markets, and techniques and processes government and organisations use to manage financial risk, demonstrating broad knowledge of economic theories and related decision making in a national and organisational economic context.

It applies to individuals who have an understanding of economics and how this impacts on work in the financial services industry. It also underpins other skills required for work in the financial services industry and may be applied in all sectors of the industry.

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. Apply economic principles and theories

1.1 Develop and apply knowledge of economic principles relevant to the industry

1.2 Apply microeconomic theory of markets and influences on financial products and services to determine structure of organisation

1.3 Apply capital adequacy regulation and requirements to work functions

2. Evaluate economic aspects that apply to decision making

2.1 Apply relevant financial modelling techniques to economic data to inform decision making

2.2 Analyse and apply appropriate asset pricing models

2.3 Apply models to determine organisational value in relation to capital structure

3. Review own work

3.1 Evaluate own work in context of relevant economic principles

3.2 Improve performance through understanding of how economics applies to own decision making

4. Maintain personal understanding of economic policies

4.1 Research current economic theories and their impact on the industry to ensure relevant current knowledge

4.2 Integrate contemporary economic principles into work practices

Evidence of the ability to:

research economic trends, evaluate impacts, and access and interpret corporate regulations

analyse and apply a range of financial modelling techniques and tools

reflect on and review own performance in applying knowledge of economic principles in day-to-day work functions.

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:

outline key features of common economic theories that relate to the financial services industry

outline key features of microeconomic principles and how they relate to financial services industry products, services and organisational practices

explain capital adequacy requirements for financial services organisations based on financial product mix

explain asset pricing models and their use in identifying organisational value and capital structures

explain and apply economic theories and valuation of assets

identify and apply financial modelling techniques and tools

outline industry or organisation financial markets, products and services

describe key features of relevant legislation, statutory requirements and industry codes of practice

identify and describe techniques and tools for evaluation and interpretation of research data

describe the economic and political climate relating to the financial services industry.

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

common office equipment, technology, software and consumables.

current financial services industry economic literature and research.

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. Apply economic principles and theories

1.1 Develop and apply knowledge of economic principles relevant to the industry

1.2 Apply microeconomic theory of markets and influences on financial products and services to determine structure of organisation

1.3 Apply capital adequacy regulation and requirements to work functions

2. Evaluate economic aspects that apply to decision making

2.1 Apply relevant financial modelling techniques to economic data to inform decision making

2.2 Analyse and apply appropriate asset pricing models

2.3 Apply models to determine organisational value in relation to capital structure

3. Review own work

3.1 Evaluate own work in context of relevant economic principles

3.2 Improve performance through understanding of how economics applies to own decision making

4. Maintain personal understanding of economic policies

4.1 Research current economic theories and their impact on the industry to ensure relevant current knowledge

4.2 Integrate contemporary economic principles into work practices

Evidence of the ability to:

research economic trends, evaluate impacts, and access and interpret corporate regulations

analyse and apply a range of financial modelling techniques and tools

reflect on and review own performance in applying knowledge of economic principles in day-to-day work functions.

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:

outline key features of common economic theories that relate to the financial services industry

outline key features of microeconomic principles and how they relate to financial services industry products, services and organisational practices

explain capital adequacy requirements for financial services organisations based on financial product mix

explain asset pricing models and their use in identifying organisational value and capital structures

explain and apply economic theories and valuation of assets

identify and apply financial modelling techniques and tools

outline industry or organisation financial markets, products and services

describe key features of relevant legislation, statutory requirements and industry codes of practice

identify and describe techniques and tools for evaluation and interpretation of research data

describe the economic and political climate relating to the financial services industry.

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

common office equipment, technology, software and consumables.

current financial services industry economic literature and research.

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
Develop and apply knowledge of economic principles relevant to the industry 
Apply microeconomic theory of markets and influences on financial products and services to determine structure of organisation 
Apply capital adequacy regulation and requirements to work functions 
Apply relevant financial modelling techniques to economic data to inform decision making 
Analyse and apply appropriate asset pricing models 
Apply models to determine organisational value in relation to capital structure 
Evaluate own work in context of relevant economic principles 
Improve performance through understanding of how economics applies to own decision making 
Research current economic theories and their impact on the industry to ensure relevant current knowledge 
Integrate contemporary economic principles into work practices 

Forms

Assessment Cover Sheet

FNSINC601 - Apply economic principles to work in the financial services industry
Assessment task 1: [title]

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I declare that the assessment tasks submitted for this unit are my own work.

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Result: Competent Not yet competent

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Assessment Record Sheet

FNSINC601 - Apply economic principles to work in the financial services industry

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

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