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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. Apply economic principles and theories
   • Develop and apply knowledge of economic principles relevant to the industry
   • Apply microeconomic theory of markets and influences on financial products and services to determine structure of organisation
   • Apply capital adequacy regulation and requirements to work functions
2. Evaluate economic aspects that apply to decision making
   • Apply relevant financial modelling techniques to economic data to inform decision making
   • Analyse and apply appropriate asset pricing models
   • Apply models to determine organisational value in relation to capital structure
3. Review own work
   • Evaluate own work in context of relevant economic principles
   • Improve performance through understanding of how economics applies to own decision making
4. Maintain personal understanding of economic policies
   • Research current economic theories and their impact on the industry to ensure relevant current knowledge
   • Integrate contemporary economic principles into work practices

Performance Evidence

Evidence of the ability to:

research economic trends, evaluate impacts, and access and interpret corporate regulations

analyse and apply a range of financial modelling techniques and tools

reflect on and review own performance in applying knowledge of economic principles in day-to-day work functions.

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:

outline key features of common economic theories that relate to the financial services industry

outline key features of microeconomic principles and how they relate to financial services industry products, services and organisational practices

explain capital adequacy requirements for financial services organisations based on financial product mix

explain asset pricing models and their use in identifying organisational value and capital structures

explain and apply economic theories and valuation of assets

identify and apply financial modelling techniques and tools

outline industry or organisation financial markets, products and services

describe key features of relevant legislation, statutory requirements and industry codes of practice

identify and describe techniques and tools for evaluation and interpretation of research data

describe the economic and political climate relating to the financial services industry.

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