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Evidence Guide: FNSFMB502A - Identify and develop complex broking options for client

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

 

FNSFMB502A - Identify and develop complex broking options for client

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

Identify complex broking needs of client

  1. Special or complex features of a client's situation and objectives are discussed, reviewed and clarified
  2. Risk issues and tolerance are explored and discussed comprehensively and ethically with the client, including unusual risks or requirements, and interdependencies and implications
  3. Risks to the client or organisation are assessed for their impact according to company policy, guidelines and relevant legislation and further questioning and information gathering is engaged as required
Special or complex features of a client's situation and objectives are discussed, reviewed and clarified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk issues and tolerance are explored and discussed comprehensively and ethically with the client, including unusual risks or requirements, and interdependencies and implications

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risks to the client or organisation are assessed for their impact according to company policy, guidelines and relevant legislation and further questioning and information gathering is engaged as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Research and consider complex broking solutions based on client needs

  1. Current client situation is analysed to determine opportunities and constraints
  2. Research into loan structures or options is conducted including those which are new or non-standard, if required
  3. Complex financial issues are considered in terms of economic, legislation, taxation, legal, insurance and other implications
  4. Possible loan structures or options, fees and charges are analysed, modelled, prioritised and measured against risk and inappropriate options are rejected
  5. Preliminary options are checked to ensure compliance with relevant Acts, legislation, regulatory and ethical guidelines and are assessed for their ability to successfully achieve the client objectives
Current client situation is analysed to determine opportunities and constraints

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Research into loan structures or options is conducted including those which are new or non-standard, if required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complex financial issues are considered in terms of economic, legislation, taxation, legal, insurance and other implications

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Possible loan structures or options, fees and charges are analysed, modelled, prioritised and measured against risk and inappropriate options are rejected

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Preliminary options are checked to ensure compliance with relevant Acts, legislation, regulatory and ethical guidelines and are assessed for their ability to successfully achieve the client objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Select and gather appropriate options and information for client review

  1. Broking options for review with client are selected and explanatory material developed or obtained
  2. If appropriate, consequences and other issues relating to the broking strategy are considered including referrals to accountant, financial adviser or lawyer where required
  3. Recommendations on risk management strategies are developed and incorporated into materials for the client and description of anticipated fees and charges included
  4. Information on complaints resolution procedures (internal and external) is included in the client information
  5. Broking recommendations and loan structures that will be presented to client are documented according to organisation guidelines and procedures
Broking options for review with client are selected and explanatory material developed or obtained

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

If appropriate, consequences and other issues relating to the broking strategy are considered including referrals to accountant, financial adviser or lawyer where required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommendations on risk management strategies are developed and incorporated into materials for the client and description of anticipated fees and charges included

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Information on complaints resolution procedures (internal and external) is included in the client information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Broking recommendations and loan structures that will be presented to client are documented according to organisation guidelines and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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:

develop detailed broking options designed to maximise the client's outcomes and reach client objectives which incorporate elements from research

develop broking options and plans which address complex needs and issues and identify and describe key assumptions on which the plan is based

provide detailed analysis of research strategies and findings

test and make appropriate checks on a proposed plan for its integrity and compliance

assess impacts of taxation, social security, economic and other government policies on client investment and financial requirements.

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 economic and financial services product information

access to specialist software and data

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 workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports

Guidance information for assessment

Required Skills and Knowledge

Required skills

highly developed communication skills to:

determine and confirm complex client requirements, using questioning and active listening as required

communicate aspects of a valuation result to clients liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

customer service skills such as:

providing appropriate contact with client throughout the complex broking process

appropriate timing of events

research and analysis for:

accessing, interpreting and analysing complex information to meet client needs

interpret results of a valuation and implication on financing proposal

identifying key issues for developing strategic options

well-developed numeracy and IT skills to:

access and use appropriate specialist software, organisational templates, spreadsheets and databases

access internet information

well-developed literacy skills to:

read and interpret organisational and industry information

develop complex financial strategies and plans

draft broking options for clients that are comprehensive and clear

draft reports setting out research findings and analysis

organisational skills, including the ability to plan and sequence work

Required knowledge

Acts and regulations affecting the financial industry

borrowing risk factors

environmental legislation impacting on financial services

heritage property issues and requirements

native title rights

products available in the financial services industry

relevant codes of practice

requirements related to the disclosure of capacity

the role of the finance brokers

valuation practices and methodology

Range Statement

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.

Special or complex features may include:

chattel

commercial real estate

flexibility

international purchases

liquidity

products available to the adviser

volatility of expected income or capital growth.

Risk issues may include:

asset allocation and investment spread

borrowing risk and gearing

economic

institutional risk

market and sector risks:

economic cycle

fixed interest

property

stock market

risk factors and return expectations of the client

specific product risk

volatility of income and capital.

Legislation, regulatory and ethical guidelines may include:

Consumer Affairs Act

Consumer Credit Code

contract law

Corporations Act

disclosure of any conflicts of interest

full disclosure of remuneration and fees and any other matter that may influence broker recommendations

guarantees of confidentiality

industry codes of conduct and practice

Insurance Act

integrity checks

Life Act

preparation in utmost good faith

Privacy Act

social security regulations

State and Territory legislation

Taxation Acts

Trade Practices Act

Trust law.

Broking options may include but are not limited to:

direct investments

insurance products

loan products

sources of funding

types of finance.