Application
This unit describes the skills and knowledge required to monitor and assess markets and information, analyse economic trends and developments, and provide market reports.
It applies to individuals who use specialised knowledge, systematic approaches and analytical skills to provide recommendations and guidance in strategic organisational activity.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Determine key financial markets for analysis | 1.1 Identify different sectors that occur within the financial market 1.2 Analyse the interrelationship between different market sectors, participants and the economy |
2. Access market information | 2.1 Clearly establish aims and objectives of financial markets analysis are in accordance with client and organisational requirements 2.2 Set clear and quantifiable parameters for identification and sourcing of information in accordance with legislative and organisational requirements 2.3 Access and evaluate market information and data in terms of validity, reliability and relevance in accordance with identified analysis requirement 2.4 Use appropriate methods of analysis, testing, assessment and evaluation to the information and goals and objectives of research |
3. Interpret trends and market developments | 3.1 Undertake quantitative and/or qualitative analysis of comparative market data using standard financial analysis techniques 3.2 Identify and evaluate economic trends and market developments in terms of potential implications and impacts on business 3.3 Identify and quantify risk contingencies in accordance with industry standards, precedents and techniques 3.4 Apply sound inductive reasoning to ensure consistency of interpretations based on available information |
4. Report on market data | 4.1 Prioritise and prepare market performance, trends and risk analyses for presentation in required format, style and structure 4.2 Verify conclusions are current and sufficiently detailed to meet identified analysis requirements 4.3 Prepare and distribute reports to relevant persons within agreed timeframes and in accordance with organisational requirements 4.4 Use market information and data in accordance with relevant legal and ethical constraints and organisational requirements |
Evidence of Performance
Evidence of the ability to:
monitor and evaluate changes in market conditions using a range of data sources
access market information and produce reports using relevant data analysis methods and techniques
formulate and draw effective conclusions from the correct interpretation of quantitative and/or qualitative data analysis
work within legal and ethical constraints.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
describe the key roles played by intermediaries and issuers, and other participants including:
financial service providers
banks
brokers
investment banks
building societies
money brokers
financial companies
stockbrokers
futures brokers
retail and wholesale clients
ASX
analyse the economic environment including:
characteristics and impacts of economic and business cycles
government monetary and fiscal policies
interest rates, exchange rates and inflation
trends and market development affecting the information being analysed
describe key features of:
interrelationships between financial industry sectors and participants
structure and interrelationships within the financial markets
compare and contrast sources of market and comparative data
outline the key features and processes relating to:
methods of market data analysis
data collection and management systems
discuss the significance of economic concepts to the analysis of financial markets and information
describe the key features of:
relevant legislation including privacy and freedom of information legislation
organisational guidelines, goals and objectives
ethical constraints and codes of practice
outline key theories of investment, portfolio management and management of investment risk.
Assessment Conditions
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.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.2, 2.1-2.4, 3.1, 3.2, 3.4 | Systematically researches and analyses complex information relevant to the operational role |
Writing | 3.1, 4.1, 4.2, 4.3 | Produces logically structured documentation using formats, style and protocols appropriate for the audience and purpose Uses clear language and correct terminology to convey complex information |
Oral Communication | 2.1, 4.3 | Determines and confirms requirements, using questioning and active listening, and clearly explains detailed information using language, tone and pace appropriate to audience Participates effectively in verbal exchanges to share and present information and concepts appropriate for audience and purpose |
Numeracy | 2.2, 2.3, 3.1, 3.3, 4.1, 4.2, 4.3 | Uses mathematical equations and statistical techniques, and performs elementary probability calculations relating to financial and numerical information |
Navigate the world of work | 1.1, 1.2, 2.2, 3.3, 4.3, 4.4 | Takes responsibility for the provision of timely, accurate and relevant information in accordance with ethical, legal and organisational requirements |
Interact with others | 2.1, 4.3 | Selects and uses appropriate conventions and protocols when liaising or sharing information with clients or personnel |
Get the work done | 2.1-2.4, 3.1-3.4, 4.1-4.4 | Applies systematic and analytical decision-making processes to make recommendations for complex and non-routine situations Accepts responsibility for planning and sequencing complex tasks and workload Uses the main features and functions of digital tools to complete work tasks and access information |
Sectors
Financial markets