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

FNSASICM503A Mapping and Delivery Guide
Provide Tier 1 personal advice in life insurance

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSASICM503A - Provide Tier 1 personal advice in life insurance
Description This unit has been specifically designed to, when combined with industry specified units, satisfy the skills requirements of 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.Conditions relating to ASIC training requirements and accreditation should be obtained from ASIC. The unit will be changed in accordance with relevant changes to the legislation.This unit is a co-requisite unit that cannot be assessed or issued without first satisfying the industry specific units identified in the evidence guide.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the ASIC.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit requires the application of skills and knowledge required to provide advice in life insurance in accordance with ASIC regulations.This unit requires the application of interpersonal, needs analysis, advisory and customer service skills to the provision of advice to clients.The unit may be applied within organisations of various sizes and across a range of customer bases.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites FNSIAD501A Provide appropriate services, advice and products to clients FNSINC501A Conduct product research to support recommendations FNSCUS505A Determine client requirements and expectations FNSCUS506A Record and implement client instructions
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
  • A range of communication and interpersonal skills are used to establish the knowledge level of client
  • Enquiries in relation to products and services are responded to by explaining the range of products and services available and their relevant fee and charging methodology
  • Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct
  • Familiarity with the procedures for complaints handling and the circumstances in which they should be engaged is demonstrated
       
Element: Identify client's objectives, needs and financial situation
  • A range of communication and interpersonal skills are used to gather client's personal, financial and business details
  • Client's needs are identified by encouraging expression of their objectives and goals (short-, medium- and long-term goals as relevant to the product)
  • Product risk profile of the client is identified
  • Client's expectations of cash flow and relevant taxation obligations are obtained
       
Element: Analyse client's objectives, needs, financial situation and risk profile
  • An assessment of client needs is undertaken, utilising all information gathered and taking into account clients product expectations and specific needs
  • Client is consulted throughout the analysis for further clarification where necessary
  • The need for specialist advice is analysed and/or client is referred to appropriate adviser for higher level/specialist advice if required
  • Product risk profile of the client is assessed and agreed
  • Understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered, as detailed in the evidence guide, is demonstrated
       
Element: Develop appropriate strategies and solutions
  • An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of client's needs
  • Relevant research, analysis and product modelling is conducted
  • Appropriate solution (plan, policy or transaction) is drafted for presentation to client
       
Element: Present appropriate strategies and solutions to client
  • Product knowledge appropriate for the service or product offered is demonstrated when presenting the product
  • The proposed transaction is explained and discussed with the client in a clear and unambiguous way
  • Relevant details, terms and conditions of product/service are reinforced to client
  • Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client
  • Client is provided with written supporting documentation and guided through the key aspects of the documentation
       
Element: Negotiate financial plan/policy/transaction with client
  • Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified
  • Confirmation is sought from client that they understand the proposed plan/policy/transaction
       
Element: Coordinate implementation of agreed plan/policy/ transaction
  • The client's formal agreement to the proposed plan/policy/transaction is gained
  • Associated fee and cost structures are clearly explained and confirmation of understanding gained from the client
  • Timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client
       
Element: Complete and maintain necessary documentation
  • Proposal and all other statutory and transactional documents are completed and signed off by the client
  • Copies of appropriate documentation and the signed agreement are exchanged
       
Element: Provide ongoing service where requested by client
  • Type and form of ongoing service, including reporting on performance and review of plan/policy/transaction is agreed with the client
  • Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client
  • Ongoing service is provided as required
       


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.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

interpret and comply with industry regulations and codes of practice

apply knowledge of financial products and services, financial markets and characteristics, roles of other specialist providers and licensees, as well as the impacts of taxation on the clients financial requirements for the specific products offered.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to organisation records

access to organisational policies and procedures.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency

observing processes and procedures in workplaces

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports

setting and reviewing workplace projects and business simulations or scenarios.

Guidance information for assessment

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.

Required skills

communication skills to:

negotiate with customers

determine and confirm information, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform calculations related to achieving required outcomes

use computer applications (word processing, spreadsheet, database, specific purpose computer systems) to assist in achieving required outcomes

access and update records electronically

access web-based information services

literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information

research and analysis skills for accessing and interpreting relevant information

organisational skills, including the ability to plan and sequence work

needs analysis and analytical skills to analyse information and products to ensure appropriateness to client needs, currency and accuracy

presentation skills

interpersonal and communication skills

Required knowledge

Generic knowledge requirements

generic knowledge about the economic environment, the characteristics and impact of economic and business cycles, including interest rates, exchange rates, inflation, and government monetary and fiscal policies

generic knowledge about the operation of financial markets, the roles played by intermediaries and issuers, structure and inter-relationships within the financial markets, and inter-relationship between industry sectors

generic knowledge about financial products, including the concept of a financial product, general definition, specific inclusions and exclusions, types of financial investment products, types of financial risk products

generic knowledge about the taxation issues in relation to the products and markets in which they operate

generic knowledge about advisory functions, the role of the representative/adviser, participants in the advisory services market, range of services provided, profile and financial information of the client, appropriateness of a risk assessment

generic knowledge about the legal environment and disclosure and compliance, the role of the representative/adviser, relevant legal principles (e.g. Corporations Act, Financial Services Reform Act (FSRA), Trade Practices Act), the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith, full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser's recommendation)

knowledge of relevant industry codes of practice and conduct

knowledge of complaints resolution procedures (internal and external)

knowledge of regulators' guidelines including the requirements of ASIC Regulatory Guide 146

Specialist knowledge requirements

operation of insurance markets:

definition of insurance product

characteristics and participants of the Australian insurance market

roles played by intermediaries

life insurance:

types/classes of life insurance products/policies

standard cover (and deviations)

product development

policy wordings

underwriting

insurance claims

premium rating/risk assessment

investment strategy (investment component of life insurance products)

insurance products:

types of insurance products (eg risk insurance products, investment life insurance products and general insurance products)

conditions, exclusions, levels of coverage of risk transfer products

pricing

taxation:

awareness of taxation issues relating to insurance products

advisory functions:

the role of insurance adviser/broker/agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

legal environment - disclosure and compliance:

the role of the representative/adviser

relevant legal principles (e.g. Corporations Act, ASIC Act, Insurance Contracts Act 1984, Life Insurance Act 1995, Privacy Amendment (Private Sector) Act)

the relationship between ethics and regulatory requirements (eg good faith, utmost good faith, full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser's recommendation)

relevant industry standards and codes of conduct

regulators' guidelines

complaints resolution procedures (external and, if relevant, internal)

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Adviser may include:

all natural persons who provide financial product advice to retail clients

any representative of a licensee

employee or owner.

Client's personal, financial and business details may include:

details of liabilities and potential liabilities of the client

details of the customers needs and objectives for income, security, liquidity, and the time period the customer is planning for

individual investment preferences and aversion or tolerance to risk

other customer details such as employment security, likely events and their impact on the customer, age and other products they have.

Risk profile may include:

access restrictions on product

borrowing risk/gearing

economic

market and sector risks (economic cycle, fixed interest, property, stock market)

risk factors and return expectations

specific product risk

volatility of income and capital.

Client's expectations may include:

active

beliefs about performance

conservative

fluctuations in income and/or capital

long term or short term investor

moderate

passive

risk

security

speculator.

Assessment of client's needs may include:

business needs

debt position

expectations of access to product

expectations of income from this product

expectations of lifecycle and length of product

family income

security.

Documentation may include:

computer and manual applications

disclaimers

disclosures

product application forms

written advice.

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
A range of communication and interpersonal skills are used to establish the knowledge level of client 
Enquiries in relation to products and services are responded to by explaining the range of products and services available and their relevant fee and charging methodology 
Client is informed of the role of the adviser and the licensee/principal responsible for the adviser's conduct 
Familiarity with the procedures for complaints handling and the circumstances in which they should be engaged is demonstrated 
A range of communication and interpersonal skills are used to gather client's personal, financial and business details 
Client's needs are identified by encouraging expression of their objectives and goals (short-, medium- and long-term goals as relevant to the product) 
Product risk profile of the client is identified 
Client's expectations of cash flow and relevant taxation obligations are obtained 
An assessment of client needs is undertaken, utilising all information gathered and taking into account clients product expectations and specific needs 
Client is consulted throughout the analysis for further clarification where necessary 
The need for specialist advice is analysed and/or client is referred to appropriate adviser for higher level/specialist advice if required 
Product risk profile of the client is assessed and agreed 
Understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered, as detailed in the evidence guide, is demonstrated 
An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of client's needs 
Relevant research, analysis and product modelling is conducted 
Appropriate solution (plan, policy or transaction) is drafted for presentation to client 
Product knowledge appropriate for the service or product offered is demonstrated when presenting the product 
The proposed transaction is explained and discussed with the client in a clear and unambiguous way 
Relevant details, terms and conditions of product/service are reinforced to client 
Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client 
Client is provided with written supporting documentation and guided through the key aspects of the documentation 
Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified 
Confirmation is sought from client that they understand the proposed plan/policy/transaction 
The client's formal agreement to the proposed plan/policy/transaction is gained 
Associated fee and cost structures are clearly explained and confirmation of understanding gained from the client 
Timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client 
Proposal and all other statutory and transactional documents are completed and signed off by the client 
Copies of appropriate documentation and the signed agreement are exchanged 
Type and form of ongoing service, including reporting on performance and review of plan/policy/transaction is agreed with the client 
Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client 
Ongoing service is provided as required 

Forms

Assessment Cover Sheet

FNSASICM503A - Provide Tier 1 personal advice in life insurance
Assessment task 1: [title]

Student name:

Student ID:

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

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSASICM503A - 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

Assessor name:

Signature:

Date:

Student signature:

Date: