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Elements and Performance Criteria
Performance Evidence
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
Generic knowledge requirementsanalyse the economic environment, the characteristics and impact of economic and business cycles, including interest rates, exchange rates, inflation, and government monetary and fiscal policydiscuss the operation of financial markets, the roles played by intermediaries and issuers, structure and interrelationships within the financial markets, and interrelationship between industry sectorscompare and contrast financial products, including the concept of a financial product, general definition, specific inclusions and exclusions, types of financial investment products and types of financial risk productsappraise taxation issues in relation to the products and markets in which they operatediscuss advisory functions, the role of the representative or adviser, participants in the advisory services market and range of services providedexplain the profile and financial information of the client and appropriateness of a risk assessmentdiscuss the legal environment and disclosure and compliance, the role of the representative or adviser, relevant legal principles (e.g. Corporations Act, Financial Services Reform Act, the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration or fees and any other conflicts of interest which may influence the adviser’s recommendation)interpret relevant industry codes of practice and conductdescribe complaints resolution procedures (internal and external)describe regulators’ guidelines including the requirements of ASIC policy relevant product areas.Specialist knowledge requirementsdescribe the operation and management of self-managed superannuation fundsdescribe the characteristics and structure of a superannuation productdistinguish between the roles played by intermediaries and issuersdescribe different types of superannuation productsoutline fee structure, administration and management costsdescribe types of contributionsdescribe annuities or pensions, allocated pensions and income stream products and analyse associated risks with thesedescribe the structure of superannuation plans management and administration of superannuation productsdefine preservation rulesevaluate investment strategies within superannuation fundsidentify restrictions on investment strategies.Taxationanalyse the impact of taxation on investment earningsdefine and explain a range of terms including:employer and employee contributionsbenefit payments and expensestax deductionscapital gains tax treatmentrolloversdeath benefitsfranking creditsexplain taxation issues related to retirement planning.Legal environment - disclosure and compliancedescribe the role of the representative or adviserdiscuss the application of relevant legal principles contained in:Corporations ActASIC ActPrivacy Actdiscuss the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser)explain the relevance of industry codes of conductdescribe compliant resolution procedures (external and, if relevant, internal).