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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 and identify client’s needs and financial situation
   • Establish knowledge level, objectives and goals of client
   • Explain range of products and services available to client according to client objectives and goals, and respond to enquiries where required
   • Inform client about role of adviser and licensee or principal responsible for adviser’s conduct
   • Analyse client’s financial and business details and assess client’s financial needs
   • Establish product risk profile of client, including their expectations of cash flow and relevant taxation obligations
2. Develop strategies and solutions according to client’s objectives, needs, financial situation and risk profile
   • Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs
   • Consult and clarify with client throughout analysis where required
   • Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice, where required
   • Assess and confirm product risk profile of client
   • Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs
   • Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client
3. Present strategies and solutions to client and determine financial plan, policy or transaction
   • Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements
   • Reinforce all relevant details, terms and conditions of product and service
   • Disclose impacts and possible risks of product or service
   • Provide supporting written documentation according to legislative requirements and organisational policies and procedures
   • Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction
   • Confirm that client understands proposed plan, policy or transaction
4. Agree to plan, policy or transaction and complete documentation
   • Obtain client’s formal agreement to proposed plan, policy or transaction
   • Explain and confirm client understands all associated fees, cost structures and timeframes for execution and processing
   • Confirm that proposal and all other statutory and transactional documents are completed and signed off by client
   • Exchange copies of signed agreement and other required documentation
5. Provide arrangements for ongoing service, where requested by client
   • Confirm that type and form of ongoing service, including review of products or services, is agreed with client
   • Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details
   • Implement procedures for agreed ongoing service according to organisational policies and procedures

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

provide wholesale advice in foreign exchange for at least two different clients.

In the course of the above, the candidate must:

comply with organisational policies and procedures, industry regulations and legislative requirements for foreign exchange

implement the plan, policy or transaction once agreed by each client.

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Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

Generic knowledge

organisational policies and procedures relating to providing wholesale advice in foreign exchange

characteristics of the economic environment, including:

impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

operation of financial markets, including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

key aspects of financial products, including:

types of financial investment products

specific inclusions and exclusions

types of financial risk products

fee structures and charging methodologies

Specialist knowledge

operation of foreign exchange markets, including:

market participants

roles played by intermediaries

key characteristics of foreign exchange products, including:

types of foreign exchange products

associated risks

alternative products, including derivatives

fee structures and charging methodologies

taxation issues in relation to foreign exchange products and markets in which they operate

key aspects of the legal environment, including disclosure and compliance covering:

role of representative and adviser

legal principles relating to key Acts relevant to performance evidence

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

relevant industry standards and codes of conduct

regulators’ guidelines relevant to the provision of general or wholesale advice in foreign exchange

resolution procedures for internal and external complaints

theories of investment, portfolio management and management of investment and risk, including:

investment concepts and strategies

identification of types of risk

client risk profile

hedging concepts.

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