This unit applies to job roles that involve providing ongoing financial advice to clients and is likely to involve regulation and licensing.

ELEMENT

PERFORMANCE CRITERIA

1. Analyse client's expectations, requirements and investment strategies

1.1. Client's expectations and needs are determined in accordance with client requirements, organisation policies and guidelines, and relevant legislation or industry codes of practice

1.2. Appropriate strategies to meet client's needs and requirements are determined promptly and accurately

1.3. Research is carried out and relevant research data is utilised where appropriate

1.4. Specialist advice and assistance, where required, is sought and obtained promptly

1.5. Cost-benefit analysis is carried out on the various strategies determined and is documented where appropriate

2. Develop a response consistent with client's investment strategies and agreed terms of business

2.1. A range of investment options relevant to client requirements and investment strategies is selected

2.2. Features of the options, including potential impacts are explained in a clear, unambiguous way to client

2.3. Relevant disclosures as required by legislation, industry codes of practice or organisation policies and guidelines are made to clients

2.4. Confirmation is sought from clients that they understand the selected options, potential impacts and disclosures

2.5. Requirements to put the suggested options into effect are explained and agreement to proceed is obtained from clients

2.6. Documentation, including suggested options, agreed investment strategies and confirmation of agreement is prepared promptly and accurately

2.7. Client records are updated and filed promptly

3. Provide ongoing financial advice and review of portfolio where requested and within agreed terms of business

3.1. Ongoing rapport is maintained with clients

3.2. Client satisfaction and feedback is sought regarding service performance, portfolio performance and recommended investment strategies

4. Market services and investment opportunities to clients

4.1. Potential investment opportunities and provision of additional or ongoing services are identified from a review of client records and feedback and external financial markets

4.2. Strategies to inform existing clients of additional/ongoing services and potential investment opportunities are identified and implemented

4.3. Client feedback on advertising/marketing strategies is sought to monitor the effectiveness of those strategies

Required skills

well-developed communication skills to:

determine and confirm client requirements, using questioning and active listening as required and avoiding unnecessary industry jargon

negotiate with clients on suitable products and services

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

research and analysis to access, interpret and manage complex information and product characteristics

presentation skills to inform clients of findings and recommendations

well-developed literacy skills for:

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

reading and interpreting documentation from a variety of sources and recording, gathering and consolidating financial information

drafting comprehensive client documentation and recommendations

learning skills to maintain knowledge of changes to relevant legislation and financial product features

organisational skills, including the ability to plan and sequence work

Required knowledge

basic tax factors, business principles and law impacting on financial products

current economic climate and outlook

financial product and service terms and conditions

general sales and marketing techniques

local and international financial markets and investments

organisational policy, procedures and requirements

relevant legislation and codes of practice

relevant research reports on financial markets

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:

analyse client expectations, requirements and investment strategies

develop a rapport with clients and respond to their investment strategies and agreed terms of business

interpret and comply with organisation policies and guidelines, industry codes of practice and relevant legislation.

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

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 expectations and needs may include:

beliefs about performance of financial products

financial planning

long-term or short-term risk and security of investment

portfolio advice

speculative advice

stock specific advice.

Organisation policy and guidelines may include:

advertising and marketing

codes of practice

complaints and dispute resolution procedures

IT and administrative systems

policies and procedures in relation to client service

product or service development.

Relevant legislation and codes of practice may include:

Consumer Affairs Act

Consumer Credit Code

contract law

Corporations Act

industry codes of practice

national Guarantee Funds Rules

Privacy Act

relevant financial association's business rules and codes of conduct

secrecy laws

Taxation Act

Trade Practices Act

trust law.

Clients may include:

agents

companies and organisations

intermediaries

members

members of the public

shareholders

stockbrokers

trustees.

Investment options, opportunities and strategies may include:

equities

corporate advice

derivatives

discretionary accounts

margin lending

money market facilities

portfolio management and administration

research

scrip lending

tax factors.

Disclosures include:

charges

fees

interest.

Documentation may include:

advice provided

agreements

bills

contracts or policy statements

in-house publications

legal, government, professional documents

meeting notes

memos

correspondence:

official

general

other

program recommendations

prospectuses

quotations

reasons for adopting or incorporating certain information in preference to other information

receipts

records of telephone conversations

reference to all evidence and information considered

reports including:

research

statistical

ad hoc

transaction

other.

Additional or ongoing service may be:

annually

daily

if and when required

monthly

quarterly

weekly.

Strategies to inform existing clients may include:

email

mail-outs

networking

newsletters

phone calls

seminars

websites.

Unit sector

Industry advice

This unit contains employability skills.