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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Establish relationship with client
   • Use range of communication and interpersonal skills to establish knowledge level of client
   • Respond to enquiries in relation to products and services by explaining range available and associated fee and charging schedule
   • Inform client of role of adviser and licensee or principal responsible for adviser’s conduct, including procedures for complaints handling and circumstances in which they should be engaged
2. Identify client objectives, needs and financial situation
   • Employ range of communication and interpersonal skills to gather client personal, financial and business details
   • Identify client’s needs and product risk profile by encouraging expression of objectives and short-term, medium-term and long-term goals as relevant to product
   • Establish and confirm client expectations of cash flow and relevant taxation obligations
3. Analyse client objectives, needs, financial situation and risk profile
   • Undertake assessment of client’s needs, using all information gathered and taking into account client’s product expectations and specific needs
   • Consult client throughout analysis for further clarification where necessary
   • Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required
   • Complete product risk profile of client that demonstrates correct application of ASIC generic and specialist knowledge relevant to products being offered

Performance Evidence

Evidence of the ability to:

work effectively with clients to collect relevant personal and/or business information that will enable identification of their objectives, needs, expectations, financial situation and risk profile

interpret and comply with relevant industry regulations and codes of practice requirements that relate to the provision of financial product advice

analyse client information and assess client risk profile to determine the characteristics of financial products and services relevant to client needs.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must satisfy the knowledge requirements relevant to the products and activities in which advice is given.

For general insurance, deposit products and non-cash payments and relevant first home saver account products the individual must:

explain the legal environment including disclosure and compliance covering:

role of the representative or adviser

relevant legal principles including the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act

the relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser’s recommendation

name relevant industry codes of practice and conduct

identify complaints resolution procedures (internal and external)

outline relevant ASIC regulatory guidelines.

For general insurance the individual must:

summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries, and identify insurance products including:

definition of an insurance product

conditions, exclusions and level of coverage of risk transfer products

types of insurance products

pricing of risk products

identify taxation issues relating to insurance products

explain advisory functions including:

role of the representative, broker or adviser

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

summarise the specific product knowledge for the general insurance products in which advice is given including:

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating and risk selection

reporting

product development

underwriting.

For deposit products and non-cash payment facilities the individual must:

name the types of deposit products and non-cash payment products

summarise the product characteristics.

For first home saver accounts the individual must:

name the types of first home saver account products including the range of accounts, associated risks and alternative products

summarise the product characteristics – eligibility and withdrawal, and government conditions

explain the taxation issues relating to first home saver accounts.

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