This unit has application to the financial markets and other financial services sectors and is applicable to job roles specifically dealing with compliance functions such as compliance officers and managers.

ELEMENT

PERFORMANCE CRITERIA

1. Identify and apply organisational requirements of legal principles and regulatory obligations

1.1. Source documents for legislation, regulations and policies relevant to the provision of financial products and services are sourced and accessed

1.2. Key legal principles and organisational implications relating to the provision of financial products and services are interpreted and analysed

1.3. The organisational requirements of these documents and their impact on work practices are identified in terms of procedural requirements

1.4. Procedural requirements relating to operational aspects of laws and regulations and codes of practice are executed in line with organisational policy

1.5. Role authorities and restrictions as identified in position profiles are complied with

1.6. Internal monitoring/audit program is implemented according to organisational and role requirements

1.7. Mechanism is established to ensure currency of regulatory literature is maintained

2. Identify changes and implications of laws, regulations, rules and circulars

2.1. Changed legislation, regulations and policies are identified and accessed in a timely manner and communicated in accordance with organisational policy

2.2. Operational procedures are reviewed to accurately reflect changes to regulation and legislation

2.3. Implications for products and services are identified and changes implemented in accordance with client, legislative and organisational requirements

3. Comply with any relevant industry or professional codes

3.1. Relevant industry codes of practice are sourced, accessed and applied to own work in accordance with organisational requirements

3.2. Key principles and responsibilities are interpreted in accordance with industry codes of practice with own interpretation and application of industry codes of practice confirmed and clarified as required with relevant persons

3.3. Impact of codes of practice on work practices is understood and implemented

4. Maintain statutory records

4.1. Relevant records are maintained and copies of any relevant agreements kept on file

4.2. Evidence of current authorisation, training and relevant licences are maintained in accordance with organisational, legal and regulatory requirements

Required skills

well-developed communication skills to:

determine and confirm legislative and organisational requirements

inform clients and colleagues of legislative and industry code of practice compliance requirements

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

IT skills to access internet information and manage record security

highly developed research and analysis for accessing, interpreting and managing complex information such as statutory requirements

well-developed literacy skills to:

read and interpret legislative and industry information

identify economic legislative factors which affect the organisation

produce reports and update organisational documentation and records

judgement skills for forming recommendations in complex situations

organisational skills including:

implementation of an internal, monitoring/audit program for staff and authority holders

the ability to plan and sequence work and work effectively in a constantly changing environment

self-management skills for complying with ethical, legal and procedural requirements

Required knowledge

disclosure of capacity criteria

duty of care principles

general obligations of a financial services officer

laws of principal and agents

organisation's products and services

relevant agency agreements or broker authority

relevant industry codes of practice

relevant regulation pertaining to the financial services industry sector

statutory records a financial services organisation needs to maintain

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:

access, accurately interpret and comply with relevant industry codes of practice and relevant laws and regulations

explain changes and implications of law, regulations, rules and circulars to clients and colleagues

accurately maintain statutory records in a timely manner.

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 legislative and industry code of practice 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 simulations or 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.

Relevant legislation, regulations and policies may include:

applicable State and Territory legislation and regulations

Australian Securities and Investments Commission (ASIC) Act, policy and guidelines

Consumer Affairs Act

contract law

general law

Insurance Act

legislation and regulations administered by Australian Prudential Regulation Authority (APRA)

occupational health and safety (OHS) legislation

organisational codes of conduct

Privacy Act

social security regulations

Superannuation Acts and regulations

Taxation Acts and regulations

trust law

Workplace Relations Act, State Industrial Relations Acts, awards and enterprise agreements.

Organisational requirements may be outlined and reflected in:

access and equity principles and practice guidelines

business and performance plans

cash handling and storage procedures

complaints and dispute resolution procedures

dispute resolution processes

ethical standards, codes of practice

formal procedures manual and quality assurance documents

goals, objectives, plans, systems and processes

legal and organisational policies and guidelines

mission statements, strategic plans

OHS policies, procedures and programs

policies and procedures in relation to client service

product or service development

quality and continuous improvement process and standards

referral procedures

use of compliance documentation such as:

product disclosure statements

statements of advice.

Laws and regulations may include:

ASIC regulations and guidelines

Consumer Protection Acts

corporations law

Trade Practices Act.

Internal monitoring/audit programs may include:

audits of disclosure documentation

Financial Services Reform (FSR) document audits

loan document audits

monthly journal audits

qualification checks.

Relevant industry codes include:

CPA Australia Code of Practice

Banking Code of Practice

Mortgage Brokers Code of Practice

other codes of any financial services association or body.

Relevant records include:

statutory records

tax records

training records.

Unit sector

Financial markets

This unit contains employability skills.