Assessor Resource

FNSSMS601A
Provide advice in self-managed superannuation funds

Assessment tool

Version 1.0
Issue Date: May 2024


This unit applies to advisory job roles in the superannuation sector.

This unit describes the performance outcomes, skills and knowledge required to provide advice in self-managed superannuation funds. It encompasses the ability to establish relationships with clients, identify and analyse their objectives needs and financial situation and risk profile to develop and present appropriate strategies and solutions, negotiate financial plan and coordinate its implementation maintaining necessary documentation and providing ongoing service where requested by client.

This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Co-Requisites

FNSSMS501A

Invest self-managed superannuation fund assets

FNSSMS602A

Apply taxation requirements when advising in self-managed superannuation funds

FNSSMS603A

Apply legislative and operational requirements to advising in self-managed superannuation funds

FNSSMS505A

Support trustee in the selection and performance monitoring of outsourced services

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:

utilise a range of communication and interpersonal skills to gather client's personal, financial and business retailed details to identify client's objectives, needs and financial situation

analyse clients objectives, needs, financial situation and risk profile using knowledge of ASIC generic and specialist knowledge requirements relevant to the products being offered

develop and present appropriate strategies and solutions and negotiate and execute financial plan/policy/transaction

complete statutory and transactional documents

present ongoing service where requested by client

NB for insurance products, competence in this unit is subject to the staff members' approval/authority to accept the transfer of risk.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the 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 organisation financial records, policies and procedures.

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

observing processes and procedures in workplaces

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports

setting and reviewing workplace business simulations or scenarios.

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

highly developed communication skills to:

liaise with others, share information, using questioning and active listening as required

use language and concepts appropriate to cultural differences

well-developed literacy skills to:

read and interpret documentation from a variety of sources and recordand consolidate related information

assess the currency and accuracy of documents held including application forms, customer advice records, customer information, brochures, etc.

numeracy and IT skills for:

identifying and using statistical models

accessing and using appropriate software such as word processors, spreadsheets and databases

using internet information

organisational skills, including the ability to plan and sequence work

needs analysis skills

analytical skills

presentation skills

well-developed customer negotiation skills

Required knowledge

Generic knowledge requirements

economic environment, the characteristics and impact of economic and business cycles, including interest rates, exchange rates, inflation, and government monetary and fiscal policies

operation of financial markets, the roles played by intermediaries and issuers, structure and inter-relationships within the financial markets, and inter-relationship between industry sectors

financial products, including the concept of a financial product, general definition, specific inclusions and exclusions, types of financial investment products, types of financial risk products

taxation issues in relation to the products and markets in which they operate

advisory functions, the role of the representative/adviser, participants in the advisory services market, range of services provided, profile and financial information of the client, appropriateness of a risk assessment

legal environment and disclosure and compliance, the role of the representative/adviser, relevant legal principles (e.g. Corporations Act, FSRA, Trade Practices Act), the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser's recommendation)

relevant industry codes of practice and conduct

complaints resolution procedures (internal and external)

regulators' guidelines including the requirements of ASIC policy relevant product areas

Specialist knowledge requirements

operation and management of self-managed superannuation funds

characteristics and structure of a superannuation product

roles played by intermediaries and issuers

types of superannuation products

fee structure/administration and management costs

types of contributions

annuities/pensions, allocated pensions and income stream products

associated risks

structure of superannuation plans management and administration of superannuation products

preservation rules

investment strategies within superannuation funds

restrictions on investment strategies

Taxation

impact on investment earnings

employer and employee contributions

benefit payments and expenses

tax deductions

capital gains tax treatment

rollovers

reasonable benefit limits

superannuation surcharge

social security pension eligibility

retirement planning

death benefits

franking credits

Legal environment - disclosure and compliance

the role of the representative/adviser

relevant legal principles:

Corporations Act

ASIC Act

Privacy Act

the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser)

relevant industry codes of conduct

compliant resolution procedures (external and, if relevant, internal)

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.

Clients may include:

member or beneficiary

prospective member

trustee or member of self-managed superannuation fund.

Adviser may include:

accountant

all natural persons who provide financial product advice to retail clients

employee or owner

financial planner

lawyer

licensee or any representative.

Client needs may include:

business needs

debt position

expectations of access to product

expectations of income from this product

expectations of lifecycle and length of product

family income

security.

Risk profile might include:

access restrictions on product

borrowing risk/gearing

economic

market and sector risks (economic cycle, fixed interest, property, stock market)

risk factors and return expectations

specific product risk

volatility of income and capital.

Client expectations may include:

personal involvement:

active

passive

risk profile:

conservative

speculator

moderate

their beliefs about performance

expectations of fluctuations in income or capital

being a long-term or short-term investor

need for security.

Information gathered might include:

details of liabilities and potential liabilities of the customer

details of the customers' needs and objectives for income, security, liquidity, and the time period the customer is planning for

individual investment preferences and aversion or tolerance to risk

other customer details such as employment security, likely events and their impact on the customer, age and other products they have.

Documentation may include:

computer and manual applications

disclaimers

disclosures

product application forms

written advice.

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
A range of communication and interpersonal skills are used to establish the knowledge level of the client 
Enquiries in relation to products and services are responded to by explaining the range of products and services available and their relevant fee and charging methodology 
Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct 
Familiarity with the procedures for complaints handling and the circumstances in which they should be engaged is demonstrated 
A range of communication and interpersonal skills are used to gather client's personal, financial and business details 
Client needs are identified by encouraging expression of their objectives and goals (short-, medium- and long-term goals as relevant to the product) 
Product risk profile of the client is identified 
Client expectations of cash flow and relevant taxation obligations are obtained 
An assessment of client needs is undertaken, utilising all information gathered and taking into account clients product expectations and specific needs 
Clients are consulted throughout the analysis for further clarification where necessary 
The need for specialist advice is analysed and/or client is referred to appropriate adviser for higher level/specialist advice if required 
Product risk profile of the client is assessed and agreed 
Understanding of the Australian Securities and Investments Commission (ASIC) identified generic and specialist knowledge relevant to the products being offered, as detailed in the evidence guide, is demonstrated 
An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of client's needs 
Relevant research, analysis and product modelling is conducted 
Appropriate solution (plan, policy or transaction) is drafted for presentation to client 
Product knowledge appropriate for the service or product offered is demonstrated when presenting the product 
The proposed transaction is explained and discussed with the client in a clear and unambiguous way 
Relevant details, terms and conditions of product/service are reinforced to client 
Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client 
Client is provided with written supporting documentation and guided through the key aspects of the documentation 
Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified 
Confirmation is sought from client that they understand the proposed plan/policy/transaction 
Client's formal agreement to the proposed plan/policy/ transaction is gained 
Associated fee and cost structures are clearly explained and confirmation of understanding gained from the client 
Timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client 
Proposal and all other statutory and transactional documents are completed and signed off by the client 
Copies of appropriate documentation and the signed agreement are exchanged 
Type and form of ongoing service, including reporting on performance and review of plan/policy/transaction is agreed with the client 
Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client 
Ongoing service is provided as required 

Forms

Assessment Cover Sheet

FNSSMS601A - Provide advice in self-managed superannuation funds
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

FNSSMS601A - Provide advice in self-managed superannuation funds

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Assessment task 1: [title] Result: Competent Not yet competent

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Overall assessment result: Competent Not yet competent

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