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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 objectives, needs and financial situation
  2. Analyse client’s objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions
  3. Present appropriate strategies and solutions to client and negotiate financial plan, policy or transaction
  4. Agree to plan, policy or transaction and complete documentation
  5. Provide ongoing service where requested by client
  6. Establish relationship with client and identify client’s objectives, needs and financial situation
  7. Analyse client’s objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions

Performance Evidence

Evidence of the ability to:

interpret and comply with industry regulations and codes of practice

analyse client’s needs, financial situation and risk profile, and prepare appropriate strategies or solutions relating to managed investments

provide accurate and ethical advice on managed investment products and services

implement the plan, policy or transaction once agreed by the client and complete documentation accurately.

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


Knowledge Evidence

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

Generic knowledge

analyse and provide an overview of the economic environment including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

analyse and provide a detailed explanation of the operation of financial markets including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

outline financial products, including:

concept of a financial product – general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products.

Specialist advice

provide a detailed explanation of managed investment products including:

concept of managed investments

range of products offered under managed investments schemes, or a specific product offered under a scheme:

property trusts, real estate investment strategies, valuation techniques, property management

equity trusts, fixed interest trusts

serviced strata schemes

primary production schemes

film schemes

time-sharing schemes

types of risks associated with managed investment products

outline taxation issues in relation to managed investment products and markets in which they operate

discuss the legal environment including disclosure and compliance covering:

role of the representative or adviser

relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act

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

relevant industry standards and codes of conduct

regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements

complaints resolution procedures (external and internal)

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

investment concepts

investment strategies

identification of types of risk

client risk profile.