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Evidence Guide: FNSASICL503 - Provide advice in the regulated emissions market

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSASICL503 - Provide advice in the regulated emissions market

What evidence can you provide to prove your understanding of each of the following citeria?

Establish relationship with client

  1. Establish relationship with client by communicating directly and openly
  2. 1.2 Inform client of role and capacity of adviser and licensee responsible for adviser's conduct
  3. Establish client’s understanding of regulated emissions market to determine range of services to be offered.
  4. Explain scope and limitation of advice and services, including fee and charging methodology, procedures for complaints handling and circumstances in which they should be engaged
  5. Respond to enquiries in relation to services and products to be provided in professional manner
Establish relationship with client by communicating directly and openly

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

1.2 Inform client of role and capacity of adviser and licensee responsible for adviser's conduct

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish client’s understanding of regulated emissions market to determine range of services to be offered.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain scope and limitation of advice and services, including fee and charging methodology, procedures for complaints handling and circumstances in which they should be engaged

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond to enquiries in relation to services and products to be provided in professional manner

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and analyse client’s objectives, needs, financial situation and risk profile

  1. 2.1 Establish client's motivation for investing in regulated emissions market
  2. Identify and document all relevant liabilities and assets for client, expectations of cash flow and any relevant taxation obligations
  3. Identify client needs by encouraging expression of goals and objectives (short-term, medium-term and long-term) relevant to product
  4. 2.4 Assess client's risk profile and agree on rating with client
  5. Explain investment implications for client for achieving objectives and needs based on client’s risk profile, cash flow and taxation implications
  6. Consult with client throughout analysis for further clarification where necessary
  7. Analyse whether there is need for specialist advice and refer to appropriate adviser if required
2.1 Establish client's motivation for investing in regulated emissions market

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and document all relevant liabilities and assets for client, expectations of cash flow and any relevant taxation obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client needs by encouraging expression of goals and objectives (short-term, medium-term and long-term) relevant to product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

2.4 Assess client's risk profile and agree on rating with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain investment implications for client for achieving objectives and needs based on client’s risk profile, cash flow and taxation implications

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult with client throughout analysis for further clarification where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse whether there is need for specialist advice and refer to appropriate adviser if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop strategy for client

  1. Assess broad strategies available to client
  2. Discuss strategies identified with client to determine and agree on most suitable approach for client needs, objectives and risk profile
  3. 3.3 Select appropriate emissions products and undertake research, analysis and financial modelling to establish which product mix best meets client's needs, objectives and risk profile
  4. Prepare statutory and organisational strategy and transaction documentation
  5. Identify and discuss with client any conflicts of interest arising from selected strategy
Assess broad strategies available to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss strategies identified with client to determine and agree on most suitable approach for client needs, objectives and risk profile

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

3.3 Select appropriate emissions products and undertake research, analysis and financial modelling to establish which product mix best meets client's needs, objectives and risk profile

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare statutory and organisational strategy and transaction documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and discuss with client any conflicts of interest arising from selected strategy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Present and negotiate strategies and solutions with client

  1. Explain to client proposed transaction and strategic methodology used, in clear and unambiguous way
  2. Check that client understands relevant details, risks, terms and conditions, advantages and disadvantages of transaction recommended
  3. Negotiate and resolve any concerns or issues that client has regarding proposed transaction
  4. Explain fee and cost structures for transaction and timeframes for execution
Explain to client proposed transaction and strategic methodology used, in clear and unambiguous way

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Check that client understands relevant details, risks, terms and conditions, advantages and disadvantages of transaction recommended

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate and resolve any concerns or issues that client has regarding proposed transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain fee and cost structures for transaction and timeframes for execution

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement and document agreed plan, policy or transaction

  1. Prepare and provide client with written documentation where required by law or codes of practice that incorporate basis on which advice is given
  2. Explain supporting documentation, and confirm content and advice against established investment requirements, risk profile and objectives
  3. Seek confirmation that client understands proposed transaction and its fee implications, and gain formal agreement to proceed in line with regulatory guidelines, accepted industry practice and organisational policy
  4. Exchange signed copies of appropriate documentation and signed agreement with client
Prepare and provide client with written documentation where required by law or codes of practice that incorporate basis on which advice is given

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain supporting documentation, and confirm content and advice against established investment requirements, risk profile and objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek confirmation that client understands proposed transaction and its fee implications, and gain formal agreement to proceed in line with regulatory guidelines, accepted industry practice and organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Exchange signed copies of appropriate documentation and signed agreement with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine and agree on any ongoing services required

  1. Agree with client on type and form of ongoing service to be provided, including reporting on performance of this transaction and other associated services
  2. Explain fees and costs for ongoing and specifically defined service and obtain confirmation of understanding from client
Agree with client on type and form of ongoing service to be provided, including reporting on performance of this transaction and other associated services

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain fees and costs for ongoing and specifically defined service and obtain confirmation of understanding from client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and analyse client’s objectives, needs, financial situation and risk profile

  1. Establish client's motivation for investing in regulated emissions market
  2. Identify and document all relevant liabilities and assets for client, expectations of cash flow and any relevant taxation obligations
  3. Identify client needs by encouraging expression of goals and objectives (short-term, medium-term and long-term) relevant to product
  4. Assess client's risk profile and agree on rating with client
  5. Explain investment implications for client for achieving objectives and needs based on client’s risk profile, cash flow and taxation implications
  6. Consult with client throughout analysis for further clarification where necessary
  7. Analyse whether there is need for specialist advice and refer to appropriate adviser if required
Establish client's motivation for investing in regulated emissions market

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and document all relevant liabilities and assets for client, expectations of cash flow and any relevant taxation obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client needs by encouraging expression of goals and objectives (short-term, medium-term and long-term) relevant to product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess client's risk profile and agree on rating with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain investment implications for client for achieving objectives and needs based on client’s risk profile, cash flow and taxation implications

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult with client throughout analysis for further clarification where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse whether there is need for specialist advice and refer to appropriate adviser if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client

1.1 Establish relationship with client by communicating directly and openly

1.2 Inform client of role and capacity of adviser and licensee responsible for adviser's conduct

1.3 Establish client’s understanding of regulated emissions market to determine range of services to be offered.

1.4 Explain scope and limitation of advice and services, including fee and charging methodology, procedures for complaints handling and circumstances in which they should be engaged

1.5 Respond to enquiries in relation to services and products to be provided in professional manner

2. Identify and analyse client’s objectives, needs, financial situation and risk profile

2.1 Establish client's motivation for investing in regulated emissions market

2.2 Identify and document all relevant liabilities and assets for client, expectations of cash flow and any relevant taxation obligations

2.3 Identify client needs by encouraging expression of goals and objectives (short-term, medium-term and long-term) relevant to product

2.4 Assess client's risk profile and agree on rating with client

2.5 Explain investment implications for client for achieving objectives and needs based on client’s risk profile, cash flow and taxation implications

2.6 Consult with client throughout analysis for further clarification where necessary

2.7 Analyse whether there is need for specialist advice and refer to appropriate adviser if required

3. Develop strategy for client

3.1 Assess broad strategies available to client

3.2 Discuss strategies identified with client to determine and agree on most suitable approach for client needs, objectives and risk profile

3.3 Select appropriate emissions products and undertake research, analysis and financial modelling to establish which product mix best meets client's needs, objectives and risk profile

3.4 Prepare statutory and organisational strategy and transaction documentation

3.5 Identify and discuss with client any conflicts of interest arising from selected strategy

4. Present and negotiate strategies and solutions with client

4.1 Explain to client proposed transaction and strategic methodology used, in clear and unambiguous way

4.2 Check that client understands relevant details, risks, terms and conditions, advantages and disadvantages of transaction recommended

4.3 Negotiate and resolve any concerns or issues that client has regarding proposed transaction

4.4 Explain fee and cost structures for transaction and timeframes for execution

5. Implement and document agreed plan, policy or transaction

5.1 Prepare and provide client with written documentation where required by law or codes of practice that incorporate basis on which advice is given

5.2 Explain supporting documentation, and confirm content and advice against established investment requirements, risk profile and objectives

5.3 Seek confirmation that client understands proposed transaction and its fee implications, and gain formal agreement to proceed in line with regulatory guidelines, accepted industry practice and organisational policy

5.4 Exchange signed copies of appropriate documentation and signed agreement with client

6. Determine and agree on any ongoing services required

6.1 Agree with client on type and form of ongoing service to be provided, including reporting on performance of this transaction and other associated services

6.2 Explain fees and costs for ongoing and specifically defined service and obtain confirmation of understanding from client

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client

1.1 Establish relationship with client by communicating directly and openly

1.2 Inform client of role and capacity of adviser and licensee responsible for adviser's conduct

1.3 Establish client’s understanding of regulated emissions market to determine range of services to be offered.

1.4 Explain scope and limitation of advice and services, including fee and charging methodology, procedures for complaints handling and circumstances in which they should be engaged

1.5 Respond to enquiries in relation to services and products to be provided in professional manner

2. Identify and analyse client’s objectives, needs, financial situation and risk profile

2.1 Establish client's motivation for investing in regulated emissions market

2.2 Identify and document all relevant liabilities and assets for client, expectations of cash flow and any relevant taxation obligations

2.3 Identify client needs by encouraging expression of goals and objectives (short-term, medium-term and long-term) relevant to product

2.4 Assess client's risk profile and agree on rating with client

2.5 Explain investment implications for client for achieving objectives and needs based on client’s risk profile, cash flow and taxation implications

2.6 Consult with client throughout analysis for further clarification where necessary

2.7 Analyse whether there is need for specialist advice and refer to appropriate adviser if required

3. Develop strategy for client

3.1 Assess broad strategies available to client

3.2 Discuss strategies identified with client to determine and agree on most suitable approach for client needs, objectives and risk profile

3.3 Select appropriate emissions products and undertake research, analysis and financial modelling to establish which product mix best meets client's needs, objectives and risk profile

3.4 Prepare statutory and organisational strategy and transaction documentation

3.5 Identify and discuss with client any conflicts of interest arising from selected strategy

4. Present and negotiate strategies and solutions with client

4.1 Explain to client proposed transaction and strategic methodology used, in clear and unambiguous way

4.2 Check that client understands relevant details, risks, terms and conditions, advantages and disadvantages of transaction recommended

4.3 Negotiate and resolve any concerns or issues that client has regarding proposed transaction

4.4 Explain fee and cost structures for transaction and timeframes for execution

5. Implement and document agreed plan, policy or transaction

5.1 Prepare and provide client with written documentation where required by law or codes of practice that incorporate basis on which advice is given

5.2 Explain supporting documentation, and confirm content and advice against established investment requirements, risk profile and objectives

5.3 Seek confirmation that client understands proposed transaction and its fee implications, and gain formal agreement to proceed in line with regulatory guidelines, accepted industry practice and organisational policy

5.4 Exchange signed copies of appropriate documentation and signed agreement with client

6. Determine and agree on any ongoing services required

6.1 Agree with client on type and form of ongoing service to be provided, including reporting on performance of this transaction and other associated services

6.2 Explain fees and costs for ongoing and specifically defined service and obtain confirmation of understanding from client

Evidence of the ability to:

establish and define the nature and scope of the client and adviser relationship

collect qualitative and quantitative information to perform strategic analysis within the regulated emissions markets

develop a strategic plan in emissions products that is appropriate for the client profile

evaluate the financial strategy with respect to local and international financial markets and factors influencing the regulated emissions market

develop advice that adheres to relevant regulatory, ethical, industry and organisational requirements

demonstrate application of ethical principles in decision making during the advising process

communicate the details of a financial advice document and establish client understanding of the proposal.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must satisfy generic and specialist knowledge requirements relevant to the products and activities in which advice is given.

Generic knowledge

analyse and provide an overview of the economic environment including:

characteristics and impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

analyse and provide a detailed explanation of the operation of financial markets including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

outline financial products including:

concept of a financial product: general definition, and specific inclusions and exclusions

types of financial investment products

types of financial risk products.

Specialist knowledge

describe types of regulated emissions units, and their characteristics (encompassing carbon units, Australian carbon credit units (ACCU) and eligible international emissions units), including their status as personal property, and how they are typically derived from inception to the point of acquiring status as a financial product

analyse risks associated with each type of regulated emission unit, including restrictions on their use, transfer and bankability for future use

describe risk characteristics and mitigating strategies relative to regulated emissions including:

regulatory risk

documentation risk

market and pricing risk

fraud

emerging market risk

counterparty risk

explain processes for acquiring, transferring and surrendering regulated emissions units, including compliance with the requirements of the Australian National Registry of Emissions Units

analyse and summarise key features of the operation of carbon markets including:

geopolitical context of carbon markets

main participants in carbon markets, and their key objectives and participation behaviours as factors influencing market activity

emissions unit supply and demand factors and regulated price factors influencing market activity and prices

issue of carbon units via auction, and auction types

types of transactions in carbon markets, including transactions relating to the carbon pricing mechanism and in voluntary markets, and the function of financial markets facilitating such trading including internationally

potential trading strategies and their implementation in carbon markets including hedging and investment strategies

risks associated with carbon markets including liquidity, pricing, credit, operational and regulatory risks

carbon market transaction documentation including documentation used for different types of counterparties and transactions, their key terms and conditions, and advantages and disadvantages

discuss the legal environment including disclosure and compliance covering:

domestic regulatory framework for the carbon pricing mechanism, including the role of the Clean Energy Regulator and the Australian National Registry of Emissions Units

domestic regulatory framework for the Carbon Farming Initiative, including the role of the Clean Energy Regulator and the Australian National Registry of Emissions Units

international regulatory framework for carbon trading, including the Clean Development Mechanism

relevant legal principles including Corporations Act, Australian Securities and Investments Commission (ASIC) Act and Privacy Amendment (Private Sector) Act

relationship between ethics and regulatory requirements (good faith, utmost good faith, full disclosure of remuneration and/or fees and any other conflicts of interest that may influence the adviser’s recommendation), and application of these requirements in professional practice

elements of the Registered Representatives Examination (where relevant)

Chi-X Australia or Australian Securities Exchange (ASX) Operating Rules (where relevant)

outline taxation issues in relation to carbon emissions products and markets in which they operate, and deductibility of costs associated with regulated emissions units

outline strategy development in an emissions marketplace including:

evaluation of client objectives against risks

concept development and evaluation

explain theories of investment, portfolio management and management of investment and risk:

investment concepts and strategies

identification of types of risk

client risk profile.