This unit applies to job roles involving provision of advice on financial products and services at ASIC Tier 2 level.

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 their needs

1.2. Relevant research, analysis and product modelling is conducted and an appropriate solution, plan, policy or transaction is drafted for presentation to the client demonstrating understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered

2. Present appropriate strategies and solutions to client

2.1. The proposed transaction is explained and discussed with the client in a clear and unambiguous way demonstrating product knowledge appropriate for the service or product offered

2.2. Relevant details, terms and conditions of product or service are reinforced to client with impacts and possible risks of the solution disclosed in a clear and concise manner

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

3. Negotiate financial plan, policy or transaction with client

3.1. Concerns or issues the client has regarding the proposed plan, policy or transaction are discussed and clarified

3.2. Confirmation is sought from client that they understand the proposed plan, policy or transaction

4. Coordinate implementation of agreed plan, policy or transaction

4.1. The client's formal agreement to the proposed plan, policy or transaction is gained

4.2. Associated fee and cost structures and 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 or 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

6.3. Ongoing service is provided as required

Required skills

communication skills to:

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

present products and services to clients clearly and thoroughly

negotiate agreed outcomes with clients

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

identify and use financial product information

access and use appropriate software such as spreadsheets and databases

use internet information

literacy skills for analysing information and products to ensure appropriateness to client needs, currency and accuracy

analytical skills to determine client risk profiles and undertake a needs analysis

interpersonal skills to establish rapport with clients and to liaise with other team members

organisational and time management skills to sequence tasks, meet timelines and arrange meetings

Required knowledge

Generic knowledge requirements

the economic environment and characteristics and impact of economic and business cycles including:

interest rates

exchange rates

inflation

government monetary and fiscal policies

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

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

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

advisory functions, including:

the role of the representative or adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

the legal environment and disclosure and compliance including:

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)

relevant industry codes of practice and conduct

complaints resolution procedures (internal and external)

ASIC regulatory guidelines

Specialist knowledge requirements

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

types of general insurance products and policies

standard cover (and deviations)

policy wordings

taxes and charges

insurance claims

premium rating and risk selection

reporting

product development

underwriting

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

types of products and facilities

product and facility characteristics

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 including, for insurance products, the required approval or authority to accept the transfer of risk

explain the characteristics, benefits and impacts of financial products and servicesto clients

present appropriate financial products and services to clients and negotiate a plan, policy or transaction successfully.

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.

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 or role plays

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios

accessing and validating third party reports.

Guidance information for assessment

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.

Identified needs and outcomes 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.

Risk profile might include:

access restrictions on product

borrowing risk and 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.

Documentation might include:

disclaimers

disclosures

product application forms

written advice.

Client concerns and issues might include:

personal involvement:

active

passive

risk profile:

conservative

speculator

moderate

their beliefs about performance

expectations of fluctuations in income or capital

being a long-term or short-term investor

need for security.

Unit sector

ASIC units

FNSASIC301C

Establish client relationship and analyse needs

This unit contains employability skills.