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Evidence Guide: FNSFMK502A - Analyse financial market products 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

 

FNSFMK502A - Analyse financial market products for client

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

Identify client needs

  1. Client information is accessed, and consultative processes are conducted to review and quantify client objectives, needs and expectations
  2. Appropriate communication and interpersonal skills are used to establish rapport and promote positive client adviser interaction
  3. Specialist advice is sought, as required, where it is identified or anticipated that clients have a complexity of needs or problems
  4. Appropriate techniques are used to accurately assess client requirements and strategies developed to meet client needs and outcomes
Client information is accessed, and consultative processes are conducted to review and quantify client objectives, needs and expectations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate communication and interpersonal skills are used to establish rapport and promote positive client adviser interaction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Specialist advice is sought, as required, where it is identified or anticipated that clients have a complexity of needs or problems

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate techniques are used to accurately assess client requirements and strategies developed to meet client needs and outcomes

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Conduct analysis of financial market products

  1. Information relevant to the range of available financial products is sourced and assessed for currency and accuracy
  2. Appropriate analytical techniques and processes are applied to identify facts, issues and patterns, inter-relationships and trends
  3. Trends are accurately analysed to provide meaningful information on the performance of financial products and markets
  4. Risk assessment is conducted of possible financial strategies and products identified through research and analysis processes
Information relevant to the range of available financial products is sourced and assessed for currency and accuracy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate analytical techniques and processes are applied to identify facts, issues and patterns, inter-relationships and trends

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Trends are accurately analysed to provide meaningful information on the performance of financial products and markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk assessment is conducted of possible financial strategies and products identified through research and analysis processes

Completed
Date:

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Provide advice and recommendations

  1. Performance, trend and risk analyses are collated and reviewed to ensure accuracy and thoroughness, and presented in an appropriate format, style and structure
  2. Recommendations are supported by evidence, and advice is consistent with relevant legislative, industry and organisational requirements
  3. Features and benefits of recommended financial products are clearly described to client and meet client requirements and expectations
Performance, trend and risk analyses are collated and reviewed to ensure accuracy and thoroughness, and presented in an appropriate format, style and structure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Recommendations are supported by evidence, and advice is consistent with relevant legislative, industry and organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Features and benefits of recommended financial products are clearly described to client and meet client requirements and expectations

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:

accurately identify clients needs for an assessment of their financial requirements, specific objectives, needs and expectations

conduct analysis of a range of financial markets products in order to provide effective advice and recommendations

interpret and comply with legislative and organisational requirements

test and assess the integrity of financial information for risk, viability and effectiveness and the impact of trends on strategy and product performance

provide correct and up-to-date advice on features and benefits of financial products and or services within designated timeframes.

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

access to financial markets databases.

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

well-developed communication skills to:

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

disseminate accurate market information

liaise with team members and peers, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

use comparative analysis techniques

use spreadsheets and databases

access internet information

highly developed research and analysis skills for:

accessing, interpreting and managing complex information and evaluating and disseminating information to clients

evaluating research against client objectives

identifying gaps in information and gathering necessary information from alternative sources

well-developed literacy skills to:

read and interpret market information

identify economic environmental factors which affect financial services and markets

produce reports

judgement skills for forming recommendations in complex situations

organisational skills, including the ability to:

estimate, plan and prioritise client requirements

plan and sequence own work

work effectively in a constantly changing environment

self-management skills for complying with ethical, legal and procedural requirements and model a professional and ethical approach to clients

Required knowledge

client needs analysis and feedback gathering strategies

duty of care and ethical requirements

financial information sources

organisational policies and procedures

relationship between ethics and regulatory requirements

relevant legal principles and compliance requirements

risks and implications associated with financial products and services

taxation issues in relation to the products and markets in which they operate

types of financial market products and services

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.

Information to be obtained from the client may include:

cash flows

required

projected

details of the client's needs and objectives for:

income

security

liquidity

time period

individual investment preferences including any aversion or tolerance to risk

other client details such as:

employment security

likely events and their impact on the client

age

other products they have

relevant personal, financial and business details.

Client objectives may include:

business needs

debt position

expectations of access to products

expectations of income from this product

expectations of life cycle and length of product

family income.

Establishing rapport may include:

establishing knowledge level of the client

explaining fee and charging methodology

explaining the adviser's role

explaining the procedures for complaint handling

explaining the services offered.

Adviser may include:

all natural persons who provide financial product advice to retail clients

any representative of a licensee

employee or owner.

Appropriate techniques to accurately assess client needs may include:

listening actively to what the client is saying and requesting

providing an opportunity for the client to confirm or rephrase the request

questioning to clarify and confirm the client's needs

rewording the requests to ensure complete understanding of needs.

Range of available financial market products may include:

capital markets

cash

commodities:

hard

soft

derivatives:

forward rate agreements

swaps

options

futures

electricity contracts

foreign exchange

government bonds

managed funds

negotiable or transferable instruments

reciprocal purchase agreements

securities:

debt

equity.

Legislation may include:

Banking Act

Commonwealth Criminal Code

Corporations Act

Financial Corporations Act

Financial Services Reform Act (FSRA)

Financial Transaction Reports Act

Privacy Amendment Act (Private Sector)

Reserve Bank Act

Taxation Act

Trade Practices Act.

Organisational requirements may be outlined and reflected in:

access and equity principles and practices guidelines

business and performance plans

complaints and dispute resolution procedures

ethical standards, codes of practice

goals, objectives, plans, systems and procedures

legal and organisational policy/guidelines

mission Statements, strategic plans

policies and procedures in relation to client services

product or services development

quality and continuous improvement process and standards

quality assurance or procedures manuals.