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Evidence Guide: FNSASICM503 - Provide Tier 1 personal advice in life insurance

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

 

FNSASICM503 - Provide Tier 1 personal advice in life insurance

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

Establish relationship with client

  1. Use range of communication and interpersonal skills to establish knowledge level of client
  2. Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology
  3. Inform client about role of adviser and licensee or principal responsible for adviser’s conduct
  4. Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged
Use range of communication and interpersonal skills to establish knowledge level of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client’s objectives, needs and financial situation

  1. Use range of communication and interpersonal skills to gather client’s personal, financial and business details
  2. Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product
  3. Identify product risk profile of client
  4. Identify client’s expectations of cash flow and relevant taxation obligations
Use range of communication and interpersonal skills to gather client’s personal, financial and business details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client’s expectations of cash flow and relevant taxation obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse client’s objectives, needs, financial situation and risk profile

  1. Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs
  2. Consult client throughout analysis to seek further clarification where necessary
  3. Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required
  4. Assess and agree on product risk profile of client
  5. Apply ASIC generic and specialist knowledge relevant to products being offered
Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult client throughout analysis to seek further clarification where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and agree on product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply ASIC generic and specialist knowledge relevant to products being offered

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop appropriate strategies and solutions

  1. Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs
  2. Undertake relevant research, analysis and product modelling
  3. Draft appropriate solution (plan, policy or transaction) for presentation to client
Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake relevant research, analysis and product modelling

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Draft appropriate solution (plan, policy or transaction) for presentation to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Present appropriate strategies and solutions to client

  1. Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered
  2. Reinforce all relevant details, terms and conditions of product and service to client
  3. Disclose impacts and possible risks of solution in clear and concise manner
  4. Provide client with written supporting documentation and guide client through key aspects of documentation
Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reinforce all relevant details, terms and conditions of product and service to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Disclose impacts and possible risks of solution in clear and concise manner

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide client with written supporting documentation and guide client through key aspects of documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Negotiate financial plan, policy or transaction with client

  1. Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction
Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

6.2 Seek client’s preferred plan, policy or transaction and confirm client’s preference

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Coordinate implementation of agreed plan, policy or transaction

  1. Seek formal agreement from client to proposed plan, policy or transaction
  2. Clearly explain associated fee and cost structures, and confirm client understands all details
  3. Ensure that timeframes for execution and processing are clearly explained to client
Seek formal agreement from client to proposed plan, policy or transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Clearly explain associated fee and cost structures, and confirm client understands all details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure that timeframes for execution and processing are clearly explained to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete and maintain necessary documentation

  1. Confirm that proposal and other documents are completed and, where appropriate, are signed off by client
  2. Ensure that signed agreement and copies of appropriate documentation are exchanged
Confirm that proposal and other documents are completed and, where appropriate, are signed off by client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure that signed agreement and copies of appropriate documentation are exchanged

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing service where requested by client

  1. Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client
  2. Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details
  3. Provide ongoing service as required
Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide ongoing service as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client’s objectives, needs and financial situation

  1. Use range of communication and interpersonal skills to gather client’s personal, financial and business details
  2. Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product
  3. Identify product risk profile of client
  4. Identify client’s expectations of cash flow and relevant taxation obligations
Use range of communication and interpersonal skills to gather client’s personal, financial and business details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify client’s expectations of cash flow and relevant taxation obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse client’s objectives, needs, financial situation and risk profile

  1. Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs
  2. Consult client throughout analysis to seek further clarification where necessary
  3. Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required
  4. Assess and agree on product risk profile of client
  5. Apply ASIC generic and specialist knowledge relevant to products being offered
Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult client throughout analysis to seek further clarification where necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and agree on product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply ASIC generic and specialist knowledge relevant to products being offered

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 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged

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

2.1 Use range of communication and interpersonal skills to gather client’s personal, financial and business details

2.2 Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product

2.3 Identify product risk profile of client

2.4 Identify client’s expectations of cash flow and relevant taxation obligations

3. Analyse client’s objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis to seek further clarification where necessary

3.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

3.4 Assess and agree on product risk profile of client

3.5 Apply ASIC generic and specialist knowledge relevant to products being offered

4. Develop appropriate strategies and solutions

4.1 Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs

4.2 Undertake relevant research, analysis and product modelling

4.3 Draft appropriate solution (plan, policy or transaction) for presentation to client

5. Present appropriate strategies and solutions to client

5.1 Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered

5.2 Reinforce all relevant details, terms and conditions of product and service to client

5.3 Disclose impacts and possible risks of solution in clear and concise manner

5.4 Provide client with written supporting documentation and guide client through key aspects of documentation

6. Negotiate financial plan, policy or transaction with client

6.1 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction

6.2 Seek client’s preferred plan, policy or transaction and confirm client’s preference

7. Coordinate implementation of agreed plan, policy or transaction

7.1 Seek formal agreement from client to proposed plan, policy or transaction

7.2 Clearly explain associated fee and cost structures, and confirm client understands all details

7.3 Ensure that timeframes for execution and processing are clearly explained to client

8. Complete and maintain necessary documentation

8.1 Confirm that proposal and other documents are completed and, where appropriate, are signed off by client

8.2 Ensure that signed agreement and copies of appropriate documentation are exchanged

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client

9.2 Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

9.3 Provide ongoing service as required

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 Use range of communication and interpersonal skills to establish knowledge level of client

1.2 Respond to enquiries by explaining range of products and services available and their relevant fees and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser’s conduct

1.4 Demonstrate knowledge of procedures for complaints handling and circumstances in which they should be engaged

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

2.1 Use range of communication and interpersonal skills to gather client’s personal, financial and business details

2.2 Encourage client to express objectives and goals, in short-term, medium-term and long-term, to identify client requirements in tandem with product

2.3 Identify product risk profile of client

2.4 Identify client’s expectations of cash flow and relevant taxation obligations

3. Analyse client’s objectives, needs, financial situation and risk profile

3.1 Undertake assessment of client needs, using all information gathered and taking into account client’s product expectations and specific needs

3.2 Consult client throughout analysis to seek further clarification where necessary

3.3 Analyse need for specialist advice and refer client to appropriate adviser for higher level or specialist advice if required

3.4 Assess and agree on product risk profile of client

3.5 Apply ASIC generic and specialist knowledge relevant to products being offered

4. Develop appropriate strategies and solutions

4.1 Determine appropriate strategy to provide for identified needs and outcomes by analysing products and client risk profile, and assessing client’s needs

4.2 Undertake relevant research, analysis and product modelling

4.3 Draft appropriate solution (plan, policy or transaction) for presentation to client

5. Present appropriate strategies and solutions to client

5.1 Explain and discuss proposed transaction with client in clear and unambiguous way, demonstrating product knowledge appropriate for service or product offered

5.2 Reinforce all relevant details, terms and conditions of product and service to client

5.3 Disclose impacts and possible risks of solution in clear and concise manner

5.4 Provide client with written supporting documentation and guide client through key aspects of documentation

6. Negotiate financial plan, policy or transaction with client

6.1 Discuss and clarify any concerns and/or issues client has regarding proposed insurance plan, policy or transaction

6.2 Seek client’s preferred plan, policy or transaction and confirm client’s preference

7. Coordinate implementation of agreed plan, policy or transaction

7.1 Seek formal agreement from client to proposed plan, policy or transaction

7.2 Clearly explain associated fee and cost structures, and confirm client understands all details

7.3 Ensure that timeframes for execution and processing are clearly explained to client

8. Complete and maintain necessary documentation

8.1 Confirm that proposal and other documents are completed and, where appropriate, are signed off by client

8.2 Ensure that signed agreement and copies of appropriate documentation are exchanged

9. Provide ongoing service where requested by client

9.1 Ensure that type and form of ongoing service, including review of plan, policy or transaction, is agreed with client

9.2 Clearly explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

9.3 Provide ongoing service as required

Evidence of the ability to:

interpret and comply with industry regulations and codes of practice in providing Tier 1 personal advice in life insurance

analyse client’s need, risk situation and a range of financial products to develop a risk profile and potential strategy or solution

advise clients accurately and ethically about specific life insurance products and services, and relevant tax implications

finalise plan, policy or transaction, ensuring all documentation is completed accurately following organisational procedures.

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, core 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.

Core insurance knowledge

explain the operation of insurance markets including:

definition of insurance product

characteristics and participants of the Australian insurance market

roles played by intermediaries

types of insurance products including risk insurance products, investment life insurance products and general insurance products

explain the following aspects of insurance products:

conditions, exclusions and levels of coverage of risk transfer products

pricing

explain taxation issues in relation to insurance products and markets

describe advisory functions including:

role of insurance adviser, broker or agent

participants in the insurance advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

discuss the legal environment including disclosure and compliance covering:

role of the representative or adviser

relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Insurance Contracts Act, Life Insurance Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act

relationship between ethics and regulatory requirements including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser's recommendation

relevant industry standards and codes of conduct

regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements

complaints resolution procedures (external and internal).

Specialist knowledge

outline the following aspects of life insurance:

types and classes of life insurance products and policies

standard cover and relevant deviations

product development

policy wordings

underwriting

insurance claims

premium rating and risk assessment

investment strategy (investment component of life insurance products).