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

FNSFMK602 Mapping and Delivery Guide
Hedge financial products

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency FNSFMK602 - Hedge financial products
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to hedge financial transactions, enter hedge transactions into organisational systems, and revalue and adjust financial positions when trading financial products within financial markets.It applies to individuals who operate within limits of responsibility and use specialised knowledge, analytical skills and systematic approaches to analyse, review and make judgements about complex financial information to meet requirements.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 markets field of work and include access to:

office equipment, technology, software and consumables

financial services product information

dealing system and data.

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: Assess hedge financial transaction
  • Assess risk tolerance and appetite, and review current financial position to determine if hedging is required using an additional financial product
  • Analyse hedging instrument options based on limits, organisational product approvals and current exposure assessment
       
Element: Complete hedge transaction
  • Undertake hedge transaction with counterparties in accordance with organisational guidelines, credit and other desk limits
  • Collect hedge transactional details, complete relevant documentation and enter hedge transaction into the organisation’s dealing system
  • Report details of transaction to authorised trade repository where required by regulation
       
Element: Assess adjusted financial position
  • Assess new post-transaction position in line with profit and loss and risk reports, and new market data available
  • Adjust hedge position, based on analysis of new data, if risk remains outside scope of organisational tolerance or market moves
  • Collect additional transactional details, complete relevant documentation and enter new transaction into organisation’s 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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

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

1. Assess hedge financial transaction

1.1 Assess risk tolerance and appetite, and review current financial position to determine if hedging is required using an additional financial product

1.2 Analyse hedging instrument options based on limits, organisational product approvals and current exposure assessment

2. Complete hedge transaction

2.1 Undertake hedge transaction with counterparties in accordance with organisational guidelines, credit and other desk limits

2.2 Collect hedge transactional details, complete relevant documentation and enter hedge transaction into the organisation’s dealing system

2.3 Report details of transaction to authorised trade repository where required by regulation

3. Assess adjusted financial position

3.1 Assess new post-transaction position in line with profit and loss and risk reports, and new market data available

3.2 Adjust hedge position, based on analysis of new data, if risk remains outside scope of organisational tolerance or market moves

3.3 Collect additional transactional details, complete relevant documentation and enter new transaction into organisation’s dealing systems

Evidence of the ability to:

complete hedge financial transactions and enter into organisational systems

evaluate and adjust financial positions

interpret and comply with organisational trading rules and limits.

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:

compare and contrast financial risk analysis techniques

analyse and describe financial market reports, including profit and loss reports

describe the key features of organisational requirements relating to financial trading

identify and classify organisational transactions limits

assess the impact of the following key economic features when hedging financial products:

characteristics and impacts of economic and business cycles

monetary and fiscal policies

interest rates, exchange rates and inflation

compare and contrast the range of financial market products available.

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. Assess hedge financial transaction

1.1 Assess risk tolerance and appetite, and review current financial position to determine if hedging is required using an additional financial product

1.2 Analyse hedging instrument options based on limits, organisational product approvals and current exposure assessment

2. Complete hedge transaction

2.1 Undertake hedge transaction with counterparties in accordance with organisational guidelines, credit and other desk limits

2.2 Collect hedge transactional details, complete relevant documentation and enter hedge transaction into the organisation’s dealing system

2.3 Report details of transaction to authorised trade repository where required by regulation

3. Assess adjusted financial position

3.1 Assess new post-transaction position in line with profit and loss and risk reports, and new market data available

3.2 Adjust hedge position, based on analysis of new data, if risk remains outside scope of organisational tolerance or market moves

3.3 Collect additional transactional details, complete relevant documentation and enter new transaction into organisation’s dealing systems

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
Assess risk tolerance and appetite, and review current financial position to determine if hedging is required using an additional financial product 
Analyse hedging instrument options based on limits, organisational product approvals and current exposure assessment 
Undertake hedge transaction with counterparties in accordance with organisational guidelines, credit and other desk limits 
Collect hedge transactional details, complete relevant documentation and enter hedge transaction into the organisation’s dealing system 
Report details of transaction to authorised trade repository where required by regulation 
Assess new post-transaction position in line with profit and loss and risk reports, and new market data available 
Adjust hedge position, based on analysis of new data, if risk remains outside scope of organisational tolerance or market moves 
Collect additional transactional details, complete relevant documentation and enter new transaction into organisation’s dealing systems 

Forms

Assessment Cover Sheet

FNSFMK602 - Hedge financial products
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

FNSFMK602 - Hedge financial products

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: