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

FNSASIC301C

Establish client relationship and analyse needs

FNSASIC302C

Develop, present and negotiate client solutions

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 First Home Saver Account Deposit product risk profile and assessment of client information

1.2. Relevant research, analysis and product modelling is conducted and an appropriate 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 the 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 First Home Saver Account Deposit 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 transaction with client

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

3.2. Confirmation is sought from client that they understand the proposed transaction

4. Coordinate implementation of agreed transaction

4.1. The client's formal agreement to the proposed 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 the First Home Saver Account Deposit product 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

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

interest rates

exchange rates

inflation

government monetary and fiscal policies

operation of First Home Saver market institutions, including:

banks

credit unions

building societies

First Home Saver Account financial products, including:

general definition

age limitations

cooling-off period

interest paid:

institution

government

fees and charges

non-cash payments:

direct debit

external funds transfer (ETF)

auto transfer

withdrawal limits and requirements

specific inclusions and exclusions

types of financial risk

taxation issues in relation to First Home Saver Accounts

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

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

analyse client needs and advise them ethically and accurately on First Home Saver Account Deposit products and services

assess the impacts of taxation on client's financial requirements for specific products offered.

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 First Home Saver Account Deposit 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

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business scenarios

evaluating samples of work

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.

Client needs, objectives and financial situation may include:

debt position

expectations of access to product

expectations of income from this product

expectations of life cycle and length of product

family income

security.

Product risk profile may include:

access restrictions on product

borrowing risk

economic market and sector risks:

economic cycle

fixed interest

property

stock market

risk factors and return expectations

specific product risk

volatility of income.

The type of information to be obtained from the client may include:

details of liabilities and potential liabilities of the client

details of the clients' needs and objectives for income, security, liquidity, and the time period the client is planning for

individual investment preferences and aversion or tolerance to risk

other client details such as:

employment security

likely events and their impact on the client

age

other products they have.

Documentation may include:

disclaimers

disclosures

product application forms

written advice.

Unit sector

ASIC units

This unit contains employability skills.