Evidence of the ability to:
use a range of communication and interpersonal skills to gather financial details to identify the self-managed superannuation fund's objectives, needs, financial situation and risk profile
analyse the self-managed superannuation fund's objectives, needs, financial situation and risk profile and identify relevant strategies
present appropriate strategies and solutions and negotiate with trustee until confirmation to proceed is obtained
prepare documentation that meets legislative requirements
negotiate and agree to ongoing service to be provided to the trustee.
Note: For insurance products, competence in this unit is subject to the staff members’ approval or authority to accept the transfer of risk.
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:
Generic knowledge requirements
analyse the economic environment, the characteristics and impact of economic and business cycles, including interest rates, exchange rates, inflation, and government monetary and fiscal policy
discuss the operation of financial markets, the roles played by intermediaries and issuers, structure and interrelationships within the financial markets, and interrelationship between industry sectors
compare and contrast financial products, including the concept of a financial product, general definition, specific inclusions and exclusions, types of financial investment products and types of financial risk products
appraise taxation issues in relation to the products and markets in which they operate
discuss advisory functions, the role of the representative or adviser, participants in the advisory services market and range of services provided
explain the profile and financial information of the client and appropriateness of a risk assessment
discuss the legal environment and disclosure and compliance, the role of the representative or adviser, relevant legal principles (e.g. Corporations Act, Financial Services Reform Act, the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration or fees and any other conflicts of interest which may influence the adviser’s recommendation)
interpret relevant industry codes of practice and conduct
describe complaints resolution procedures (internal and external)
describe regulators’ guidelines including the requirements of ASIC policy relevant product areas.
Specialist knowledge requirements
describe the operation and management of self-managed superannuation funds
describe the characteristics and structure of a superannuation product
distinguish between the roles played by intermediaries and issuers
describe different types of superannuation products
outline fee structure, administration and management costs
describe types of contributions
describe annuities or pensions, allocated pensions and income stream products and analyse associated risks with these
describe the structure of superannuation plans management and administration of superannuation products
define preservation rules
evaluate investment strategies within superannuation funds
identify restrictions on investment strategies.
Taxation
analyse the impact of taxation on investment earnings
define and explain a range of terms including:
employer and employee contributions
benefit payments and expenses
tax deductions
capital gains tax treatment
rollovers
death benefits
franking credits
explain taxation issues related to retirement planning.
Legal environment - disclosure and compliance
describe the role of the representative or adviser
discuss the application of relevant legal principles contained in:
Corporations Act
ASIC Act
Privacy Act
discuss the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser)
explain the relevance of industry codes of conduct
describe compliant resolution procedures (external and, if relevant, internal).