Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSASICM503 Mapping and Delivery Guide
Provide Tier 1 personal advice in life insurance

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSASICM503 - Provide Tier 1 personal advice in life insurance
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to analyse a client’s life insurance needs for current Australian Securities and Investments Commission (ASIC) regulation (Financial Services Reform Act) at Tier 1 (Diploma) level in the insurance specialist and generic knowledge areas.It applies to individuals who have specialist product knowledge and strong interpersonal skills and are expert communicators. In this role, excellent customer service skills relating to the provision of advice to clients is essential. Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:

office equipment, technology, software and consumables

organisational records

organisational policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Establish relationship with client
  • Use range of communication and interpersonal skills to establish knowledge level of client
  • Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology
  • Inform client about role of adviser and licensee or principal responsible for adviser’s conduct
  • Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged
       
Element: Identify client’s objectives, needs and financial situation
  • Use range of communication and interpersonal skills to gather client’s personal, financial and business details
  • Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product
  • Identify product risk profile of client
  • Identify client’s expectations of cash flow and relevant taxation obligations
       
Element: Analyse client’s objectives, needs, financial situation and risk profile
  • Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs
  • Consult client throughout analysis to seek further clarification where necessary
  • Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required
  • Assess and agree on product risk profile of client
  • Apply ASIC generic and specialist knowledge relevant to products being offered
       
Element: Develop appropriate strategies and solutions
  • Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs
  • Undertake relevant research, analysis and product modelling
  • Draft appropriate solution (plan, policy or transaction) for presentation to client
       
Element: Present appropriate strategies and solutions to client
  • Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered
  • Reinforce all relevant details, terms and conditions of product and service to client
  • Disclose impacts and possible risks of solution in clear and concise manner
  • Provide client with written supporting documentation and guide client through key aspects of documentation
       
Element: Negotiate financial plan, policy or transaction with client
  • Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction
       
Element: 6.2 Seek client’s preferred plan, policy or transaction and confirm client’s preference
       
Element: Coordinate implementation of agreed plan, policy or transaction
  • Seek formal agreement from client to proposed plan, policy or transaction
  • Clearly explain associated fee and cost structures, and confirm client understands all details
  • Ensure that timeframes for execution and processing are clearly explained to client
       
Element: Complete and maintain necessary documentation
  • Confirm that proposal and other documents are completed and, where appropriate, are signed off by client
  • Ensure that signed agreement and copies of appropriate documentation are exchanged
       
Element: Provide ongoing service where requested by client
  • Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client
  • Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details
  • Provide ongoing service as required
       
Element: Identify client’s objectives, needs and financial situation
  • Use range of communication and interpersonal skills to gather client’s personal, financial and business details
  • Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product
  • Identify product risk profile of client
  • Identify client’s expectations of cash flow and relevant taxation obligations
       
Element: Analyse client’s objectives, needs, financial situation and risk profile
  • Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs
  • Consult client throughout analysis to seek further clarification where necessary
  • Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required
  • Assess and agree on product risk profile of client
  • Apply ASIC generic and specialist knowledge relevant to products being offered
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client

1.1 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged

2. Identify client’s objectives, needs and financial situation

2.1 Use range of communication and interpersonal skills to gather client’s personal, financial and business details

2.2 Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product

2.3 Identify product risk profile of client

2.4 Identify client’s expectations of cash flow and relevant taxation obligations

3. Analyse client’s objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis to seek further clarification where necessary

3.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

3.4 Assess and agree on product risk profile of client

3.5 Apply ASIC generic and specialist knowledge relevant to products being offered

4. Develop appropriate strategies and solutions

4.1 Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs

4.2 Undertake relevant research, analysis and product modelling

4.3 Draft appropriate solution (plan, policy or transaction) for presentation to client

5. Present appropriate strategies and solutions to client

5.1 Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered

5.2 Reinforce all relevant details, terms and conditions of product and service to client

5.3 Disclose impacts and possible risks of solution in clear and concise manner

5.4 Provide client with written supporting documentation and guide client through key aspects of documentation

6. Negotiate financial plan, policy or transaction with client

6.1 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction

6.2 Seek client’s preferred plan, policy or transaction and confirm client’s preference

7. Coordinate implementation of agreed plan, policy or transaction

7.1 Seek formal agreement from client to proposed plan, policy or transaction

7.2 Clearly explain associated fee and cost structures, and confirm client understands all details

7.3 Ensure that timeframes for execution and processing are clearly explained to client

8. Complete and maintain necessary documentation

8.1 Confirm that proposal and other documents are completed and, where appropriate, are signed off by client

8.2 Ensure that signed agreement and copies of appropriate documentation are exchanged

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client

9.2 Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

9.3 Provide ongoing service as required

Evidence of the ability to:

interpret and comply with industry regulations and codes of practice in providing Tier 1 personal advice in life insurance

analyse client’s need, risk situation and a range of financial products to develop a risk profile and potential strategy or solution

advise clients accurately and ethically about specific life insurance products and services, and relevant tax implications

finalise plan, policy or transaction, ensuring all documentation is completed accurately following organisational procedures.

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

To complete the unit requirements safely and effectively, the individual must satisfy generic, core 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.

Core insurance knowledge

explain the operation of insurance markets including:

definition of insurance product

characteristics and participants of the Australian insurance market

roles played by intermediaries

types of insurance products including risk insurance products, investment life insurance products and general insurance products

explain the following aspects of insurance products:

conditions, exclusions and levels of coverage of risk transfer products

pricing

explain taxation issues in relation to insurance products and markets

describe advisory functions including:

role of insurance adviser, broker or agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

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, Insurance Contracts Act, Life Insurance 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, 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).

Specialist knowledge

outline the following aspects of life insurance:

types and classes of life insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

investment strategy (investment component of life insurance products).

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client

1.1 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged

2. Identify client’s objectives, needs and financial situation

2.1 Use range of communication and interpersonal skills to gather client’s personal, financial and business details

2.2 Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product

2.3 Identify product risk profile of client

2.4 Identify client’s expectations of cash flow and relevant taxation obligations

3. Analyse client’s objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis to seek further clarification where necessary

3.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

3.4 Assess and agree on product risk profile of client

3.5 Apply ASIC generic and specialist knowledge relevant to products being offered

4. Develop appropriate strategies and solutions

4.1 Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs

4.2 Undertake relevant research, analysis and product modelling

4.3 Draft appropriate solution (plan, policy or transaction) for presentation to client

5. Present appropriate strategies and solutions to client

5.1 Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered

5.2 Reinforce all relevant details, terms and conditions of product and service to client

5.3 Disclose impacts and possible risks of solution in clear and concise manner

5.4 Provide client with written supporting documentation and guide client through key aspects of documentation

6. Negotiate financial plan, policy or transaction with client

6.1 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction

6.2 Seek client’s preferred plan, policy or transaction and confirm client’s preference

7. Coordinate implementation of agreed plan, policy or transaction

7.1 Seek formal agreement from client to proposed plan, policy or transaction

7.2 Clearly explain associated fee and cost structures, and confirm client understands all details

7.3 Ensure that timeframes for execution and processing are clearly explained to client

8. Complete and maintain necessary documentation

8.1 Confirm that proposal and other documents are completed and, where appropriate, are signed off by client

8.2 Ensure that signed agreement and copies of appropriate documentation are exchanged

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client

9.2 Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

9.3 Provide ongoing service as required

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Use range of communication and interpersonal skills to establish knowledge level of client 
Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology 
Inform client about role of adviser and licensee or principal responsible for adviser’s conduct 
Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged 
Use range of communication and interpersonal skills to gather client’s personal, financial and business details 
Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product 
Identify product risk profile of client 
Identify client’s expectations of cash flow and relevant taxation obligations 
Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs 
Consult client throughout analysis to seek further clarification where necessary 
Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required 
Assess and agree on product risk profile of client 
Apply ASIC generic and specialist knowledge relevant to products being offered 
Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs 
Undertake relevant research, analysis and product modelling 
Draft appropriate solution (plan, policy or transaction) for presentation to client 
Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered 
Reinforce all relevant details, terms and conditions of product and service to client 
Disclose impacts and possible risks of solution in clear and concise manner 
Provide client with written supporting documentation and guide client through key aspects of documentation 
Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction 
 
Seek formal agreement from client to proposed plan, policy or transaction 
Clearly explain associated fee and cost structures, and confirm client understands all details 
Ensure that timeframes for execution and processing are clearly explained to client 
Confirm that proposal and other documents are completed and, where appropriate, are signed off by client 
Ensure that signed agreement and copies of appropriate documentation are exchanged 
Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client 
Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details 
Provide ongoing service as required 
Use range of communication and interpersonal skills to gather client’s personal, financial and business details 
Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product 
Identify product risk profile of client 
Identify client’s expectations of cash flow and relevant taxation obligations 
Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs 
Consult client throughout analysis to seek further clarification where necessary 
Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required 
Assess and agree on product risk profile of client 
Apply ASIC generic and specialist knowledge relevant to products being offered 

Forms

Assessment Cover Sheet

FNSASICM503 - Provide Tier 1 personal advice in life insurance
Assessment task 1: [title]

Student name:

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I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

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Assessor name:

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Assessment Record Sheet

FNSASICM503 - Provide Tier 1 personal advice in life insurance

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

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