Elements and Performance Criteria

Element

Performance Criteria

1

Develop appropriate strategies and solutions

1.1

An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of clients' needs

1.2

Relevant research, analysis and product modelling is conducted

1.3

Appropriate solution (plan, policy or transaction) is drafted for presentation to client

1.4

Understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered is demonstrated

2

Present appropriate strategies and solutions to the client

2.1

Product knowledge appropriate for the service or product offered is demonstrated when presenting the product

2.2

The proposed transaction is explained and discussed with the client in a clear and unambiguous way

2.3

Relevant details, terms and conditions of product/service are reinforced to client

2.4

Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client

2.5

Client is provided with written supporting documentation and guided through the key aspects of the documentation

3

Negotiate financial plan/policy/transaction with client

3.1

Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified

3.2

Confirmation is sought from client that they understand the proposed plan/policy/transaction

4

Coordinate implementation of agreed plan/policy/transaction

4.1

The clients' formal agreement to the proposed plan/policy/transaction is gained

4.2

Associated fee and cost structures are clearly explained and confirmation of understanding gained from the client

4.3

Timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client

5

Complete and maintain necessary documentation

5.1

Proposal and all other statutory and transactional documents are completed and signed off by the client

5.2

Copies of appropriate documentation and the signed agreement are exchanged

6

Provide ongoing service where requested by client

6.1

Type and form of ongoing service; including reporting on performance and review of plan/policy/transaction is agreed with the client

6.2

Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client

REQUIRED KNOWLEDGE&SKILLS

Knowledge requirements include:

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 (eg Corporations Act, Financial Services Reform Act (FSRA), Trade Practices Act etc.), 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)

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 policy statement 146

Specialist knowledge requirements

specialist knowledge of the specific industry or product in which they are operating. For general insurance products this includes:

types of general insurance products/policies

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating/risk selection

reporting

product development

underwriting

for deposit products and non-cash payment facilities this includes:

types of products/facilities

product/facility characteristics

Skills requirements include:

ability to perform completed needs analysis

analytical skills

ability to use databases and computerised equipment

presentation skills

customer negotiation skills

ability to analyse information and products to ensure appropriateness to client needs, currency and accuracy

effective interpersonal and communication skills

EVIDENCE GUIDE

Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.

Overview of assessment requirements

To achieve competency in this unit, a person must be able to demonstrate:

knowledge of industry regulations and codes of practice, 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

for insurance products, competence in this unit is subject to the staff members' approval/authority to accept the transfer of risk

Critical aspects of evidence

Evidence required for demonstration of consistent performance:

Competency is demonstrated by performance of all stated criteria, including the Range Statement applicable to the workplace environment.

Assessment should cover a representative range of clients (risk profile and needs) and products.

Delivery/assessment relationship to other units:

This unit could be assessed in conjunction with:

FNSASIC301B Establish client relationship and analyse needs.

Assessment Requirements

Method of assessment:

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment:

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Registered Training Organisations (RTOs) need to be mindful of the legislative obligations of licensees, where ASIC have prescribed the opportunities where recognition of current competence can be undertaken for these units.

Resources required for assessment:

Unless otherwise specified, there are no significant resource implications for assessment of this unit, apart from access to a relevant workplace or closely simulated office environment and the use of a range of office equipment, technology and consumables. These may include standard commercial computer hardware, software, telephones, facsimiles, and other relevant office equipment.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.

Adviser may include:

any representative of a licensee

employee or owner

all natural persons who provide financial product advice to retail clients

Identified needs and outcomes may include:

debt position

security

expectations of income from this product

family income

business needs

expectations of access to product

expectations of lifecycle and length of product

Risk profile might include:

risk factors and return expectations

volatility of income and capital

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

access restrictions on product

economic

specific product risk

borrowing risk/gearing

Information gathered from the client might include:

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

details of liabilities and potential liabilities of the customer

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

Documentation might include:

computer and manual applications

written advice

disclaimers

disclosures

product application forms

Concerns and issues might include:

beliefs about performance

security

conservative

risk

fluctuations in income and/or capital

moderate

speculator

passive

active

long term or short term investor