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Evidence Guide: FNSASICV513 - Provide wholesale advice in derivatives

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

 

FNSASICV513 - Provide wholesale advice in derivatives

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

Establish relationship with client and identify client’s needs and financial situation

  1. Establish knowledge level, objectives, risk profile and goals of client
  2. Explain range of products and services available to client according to client objectives and goals and respond to enquiries where required
  3. Inform client about role of adviser and licensee or principal responsible for adviser’s conduct
  4. Analyse client’s financial and business details and assess client’s financial needs
  5. Establish product risk profile of client
Establish knowledge level, objectives, risk profile and goals of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain range of products and services available to client according to client objectives and goals and respond to enquiries where required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse client’s financial and business details and assess client’s financial needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop strategies and solutions according to clients objectives, needs, financial situation and risk profile

  1. Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs
  2. Consult and clarify with client throughout analysis where required
  3. Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice where required
  4. Assess and confirm product risk profile of client
  5. Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs
  6. Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client
Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consult and clarify with client throughout analysis where required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice where required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and confirm product risk profile of client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Present strategies and solutions to client and determine financial plan, policy or transaction

  1. Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements
  2. Reinforce all relevant details, terms and conditions of product and/or service
  3. Disclose impacts and possible risks of product or service
  4. Provide supporting written documentation according to legislative requirements and organisational policies and procedures
  5. Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction
  6. Confirm that client understands proposed plan, policy or transaction
Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reinforce all relevant details, terms and conditions of product and/or service

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Disclose impacts and possible risks of product or service

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide supporting written documentation according to legislative requirements and organisational policies and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Confirm that client understands proposed plan, policy or transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Agree to plan, policy or transaction and complete documentation

  1. Obtain client’s formal agreement to proposed plan, policy or transaction
  2. Explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing
  3. Confirm that proposal and all other statutory and transactional documents are completed and signed off by client
  4. Exchange copies of signed agreement and other required documentation
Obtain client’s formal agreement to proposed plan, policy or transaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Confirm that proposal and all other statutory and transactional documents are completed and signed off by client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Exchange copies of signed agreement and other required documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide arrangements for ongoing service, where requested by client

  1. Confirm that type and form of ongoing service, including review of products or services, is agreed with client
  2. Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details
  3. Implement procedures for agreed ongoing service according to organisational policies and procedures
Confirm that type and form of ongoing service, including review of products or services, is agreed with client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement procedures for agreed ongoing service according to organisational policies and procedures

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 and identify client’s needs and financial situation

1.1 Establish knowledge level, objectives, risk profile and goals of client

1.2 Explain range of products and services available to client according to client objectives and goals and respond to enquiries where required

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

1.4 Analyse client’s financial and business details and assess client’s financial needs

1.5 Establish product risk profile of client

2. Develop strategies and solutions according to clients objectives, needs, financial situation and risk profile

2.1 Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs

2.2 Consult and clarify with client throughout analysis where required

2.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice where required

2.4 Assess and confirm product risk profile of client

2.5 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

2.6 Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client

3. Present strategies and solutions to client and determine financial plan, policy or transaction

3.1 Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements

3.2 Reinforce all relevant details, terms and conditions of product and/or service

3.3 Disclose impacts and possible risks of product or service

3.4 Provide supporting written documentation according to legislative requirements and organisational policies and procedures

3.5 Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction

3.6 Confirm that client understands proposed plan, policy or transaction

4. Agree to plan, policy or transaction and complete documentation

4.1 Obtain client’s formal agreement to proposed plan, policy or transaction

4.2 Explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing

4.3 Confirm that proposal and all other statutory and transactional documents are completed and signed off by client

4.4 Exchange copies of signed agreement and other required documentation

5. Provide arrangements for ongoing service, where requested by client

5.1 Confirm that type and form of ongoing service, including review of products or services, is agreed with client

5.2 Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

5.3 Implement procedures for agreed ongoing service according to organisational policies and procedures

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 and identify client’s needs and financial situation

1.1 Establish knowledge level, objectives, risk profile and goals of client

1.2 Explain range of products and services available to client according to client objectives and goals and respond to enquiries where required

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

1.4 Analyse client’s financial and business details and assess client’s financial needs

1.5 Establish product risk profile of client

2. Develop strategies and solutions according to clients objectives, needs, financial situation and risk profile

2.1 Assess client needs using information gathered, taking into consideration client’s product expectations and specific needs

2.2 Consult and clarify with client throughout analysis where required

2.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice where required

2.4 Assess and confirm product risk profile of client

2.5 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

2.6 Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client

3. Present strategies and solutions to client and determine financial plan, policy or transaction

3.1 Explain proposed strategy and/or solution to client according to organisational policies and procedures, legislative and regulatory requirements

3.2 Reinforce all relevant details, terms and conditions of product and/or service

3.3 Disclose impacts and possible risks of product or service

3.4 Provide supporting written documentation according to legislative requirements and organisational policies and procedures

3.5 Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction

3.6 Confirm that client understands proposed plan, policy or transaction

4. Agree to plan, policy or transaction and complete documentation

4.1 Obtain client’s formal agreement to proposed plan, policy or transaction

4.2 Explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing

4.3 Confirm that proposal and all other statutory and transactional documents are completed and signed off by client

4.4 Exchange copies of signed agreement and other required documentation

5. Provide arrangements for ongoing service, where requested by client

5.1 Confirm that type and form of ongoing service, including review of products or services, is agreed with client

5.2 Explain and confirm fees and costs for ongoing and specifically defined service, and confirm client understands all details

5.3 Implement procedures for agreed ongoing service according to organisational policies and procedures

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

provide wholesale advice in derivatives for at least two different clients.

In the course of the above, the candidate must:

comply with organisational policies and procedures, industry regulations and legislative requirements for derivatives

implement the plan, policy or transaction once agreed by each client.

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

Generic knowledge

organisational policies and procedures relating to providing wholesale advice in derivatives

characteristics of the economic environment, including:

impact of economic and business cycles

interest rates and exchange rates

inflation

government monetary and fiscal policy

operation of financial markets, including:

roles played by intermediaries and issuers

structure and interrelationships within the financial markets

interrelationship between industry sectors

key aspects of financial products, including:

types of financial investment products

specific inclusions and exclusions

types of financial risk products

fee structures and charging methodologies

Specialist knowledge

key characteristics of derivatives markets, including:

market participants

roles played by intermediaries

structure and interrelationships between the securities and derivatives sectors

key characteristics of derivatives products, including:

fee structures and charging methodologies

associated risks

investment options using derivatives products

key theories of investment, portfolio management and management of investment and risk, including:

investment concepts

investment strategies

identification of types of risk

client risk profile

taxation issues in relation to derivatives, financial products and markets in which they operate

legal environment, including disclosure and compliance covering:

role of representative and adviser

legal principles relating to key Acts relevant to performance evidence

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

relevant industry standards and codes of conduct

regulators’ guidelines relevant to the provision of general or wholesale advice in derivatives

resolution procedures for internal and external complaints

Australian Securities and Investments Commission (ASIC) market integrity rules

Australian Securities Exchange (ASX) 24 Operating Rules

elements of the Registered Representative Course and Examination program.