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

FNSFMK601A Mapping and Delivery Guide
Price financial transactions

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSFMK601A - Price financial transactions
Description This unit describes the performance outcomes, skills and knowledge required to compile and analyse financial information and data to determine the price of financial products and record financial transactions.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit applies to a range of transaction job roles in the financial markets sector.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
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: Compile financial information and data
  • Sources of financial data relating to financial products and financial markets are identified for analysis purposes and collected according to organisational practises
  • Financial data is analysed to evaluate current market position and review the data against financial products
       
Element: Analyse and make prices
  • Financial products are analysed utilising standard financial market investment concepts, against evaluated financial market data
  • Evaluated financial product data is reviewed against the current market position of the financial product
  • Financial market product price is reviewed against clientrequirements and credit rating and a financial transaction price formulated using standard organisational practises
  • Client is advised of the financial transaction price in accordance with organisational guidelines
       
Element: Record financial transaction
  • Client acceptance of financial transaction price is confirmed according to organisation requirements and relevant transaction documentation is completed as necessary
  • All transaction details are entered into the organisation dealing systems
       


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:

compile financial information and data and analyse this to make financial prices

record financial transactions.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services 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 financial services product information

access to dealing system and data.

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

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports.

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

well-developed communication skills to:

determine and confirm client and organisational requirements, using questioning and active listening as required

advise client of financial product prices

liaise with team members and peers, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

use comparative analysis techniques and make financial calculations

develop transaction prices

use dealing system systems, spreadsheets and databases

use internet information

highly developed research and analysis skills for:

accessing, interpreting and managing complex information and evaluating and disseminating information to clients

reviewing product information against client requirements

identifying gaps in information and gathering necessary information from alternative sources

well-developed literacy skills to:

read and interpret market information

identify economic environmental factors which affect financial services and markets

judgement skills for forming recommendations in complex situations

organisational skills, including the ability to:

prioritise client requirements

plan and sequence own work

work effectively in a constantly changing environment

self-management skills for complying with ethical, legal and procedural requirements and model a professional and ethical approach to clients

Required knowledge

the range of financial market products that can be traded

the economic environment, including:

characteristics and impacts of economic and business cycles

government monetary and fiscal policies

interest rates, exchange rates and inflation

financial markets operating software systems

risk and implications of financial positions

relevant mathematical principles and methodologies for pricing financial products and transactions

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.

Market position may include:

financial 'O' curves

forward exchange rate curves

future curves

yield curves.

Investment concepts may include:

all ordinaries and other market indicators

bull and bear markets

capital growth

cyclical stocks

diversification

dividends and dividend imputation (franked dividends)

growth stocks

market capitalisation

market turnover

portfolio construction strategies

ratios to analyse and select shares (PE ratio)

return on investment

top-down, bottom-up approach to investment analysis

types of order limits, at market

valuation methods for equities

yield.

Relevant data may include:

economic fundamentals:

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

wage index

job vacancies

building approvals

technical analysis and charting.

Financial products may include:

capital markets

cash

commodities:

hard

soft

derivatives:

forward rate agreements

swaps

options

futures

electricity contracts

foreign exchange

government bonds

managed funds

negotiable and transferable instruments

reciprocal purchase agreements

securities:

debt

equity.

Client requirements may include:

client credit rating

degree of risk undertaking

required return

size of transaction

terms of transaction.

Transaction details may include:

considerations

counterparty

face value

maturity date

price

start date

trade date.

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
Sources of financial data relating to financial products and financial markets are identified for analysis purposes and collected according to organisational practises 
Financial data is analysed to evaluate current market position and review the data against financial products 
Financial products are analysed utilising standard financial market investment concepts, against evaluated financial market data 
Evaluated financial product data is reviewed against the current market position of the financial product 
Financial market product price is reviewed against clientrequirements and credit rating and a financial transaction price formulated using standard organisational practises 
Client is advised of the financial transaction price in accordance with organisational guidelines 
Client acceptance of financial transaction price is confirmed according to organisation requirements and relevant transaction documentation is completed as necessary 
All transaction details are entered into the organisation dealing systems 

Forms

Assessment Cover Sheet

FNSFMK601A - Price financial transactions
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

FNSFMK601A - Price financial transactions

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: