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Evidence Guide: FNSFMK510A - Prepare trading strategies for clients

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

 

FNSFMK510A - Prepare trading strategies for clients

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

Analyse client position, risks and needs

  1. Client's needs and objectives are obtained and confirmed
  2. Market and product focus of the advice to the client is determined
  3. Market opportunities for a client are analysed utilising appropriate analytical tools, technical analysis, fundamental analysis and quantitative methodologies
  4. Trading opportunities for the client are identified with justification provided as required
Client's needs and objectives are obtained and confirmed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Market and product focus of the advice to the client is determined

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Market opportunities for a client are analysed utilising appropriate analytical tools, technical analysis, fundamental analysis and quantitative methodologies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Trading opportunities for the client are identified with justification provided as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage the organisation's legal risk on client transactions

  1. Risks in the strategy are identified and explained to the client
  2. Sources of legal risk for the organisation arising from the advice and the advising process are identified
  3. Advice is developed in accordance with organisation's policies, guidelines and the legal and regulatory framework
Risks in the strategy are identified and explained to the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Sources of legal risk for the organisation arising from the advice and the advising process are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Advice is developed in accordance with organisation's policies, guidelines and the legal and regulatory framework

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Execute trading strategies for client

  1. Entry and exit levels and conditions for the proposed strategy are determined
  2. Appropriate order types for executing the strategy are identified
  3. Appropriate money management solutions for trading strategy are established
  4. Ongoing advice, including adjusting trading strategy where warranted is provided to the client
Entry and exit levels and conditions for the proposed strategy are determined

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate order types for executing the strategy are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate money management solutions for trading strategy are established

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ongoing advice, including adjusting trading strategy where warranted is provided to the client

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:

interpret compliance requirements for organisational and industry financial trading procedures

analyse client needs to develop appropriate strategies to suit their circumstances

access and use appropriate tools and techniques to determine suitable financial services for clients.

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 an integrated financial software system 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

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 trading requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

well-developed numeracy and IT skills to:

check transition calculations

access and use appropriate software such as organisational trading systems, accounting software, spreadsheets and databases

useinternet information

well-developed literacy skills to:

read and interpret organisational and industry trading procedures

frame client strategies and recommendations

sound judgement skills for making decisions in operational situations

organisational skills, including the ability to plan and sequence work

Required knowledge

financial products that can be traded

financial risk management principles

financial trading reporting procedures and documentation

financial trading system featuresand characteristics

organisational trading policies and procedures

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.

Technical analysis is:

the method of analysing the historical data of a security usually involving a mathematic formula that is calculated for every day in the history then plotted on a chart.

Fundamental analysis involves:

considering the overall economy, the sector in which a business operates, and particular company's financial statements to calculate measures or 'ratios' such as:

earnings per share

price-earnings ratio

dividend yield.

analysis using a top-down approach or bottom-up approach.

Quantitative methodologies may:

assess the time series and distributional properties of financial series

model and estimate the risk-return relationship

estimate and test capital asset pricing models

estimate values at risk.

could also involve:

modelling

estimating

testing the volatility of financial markets.

Financial markets risks may include:

compliance risk

client credit risk

fraudulent activity risk

legal risk

liquidity risk

market risk

operational or security risk

reputation risk

settlement agency or bank risk

systemic risk

technology inadequacy or failure risk.

Strategy

arbitrage

investment

relative value

multi-asset

speculative.

Organisation's policies and guidelines may be outlined and reflected in:

access and equity principles and practice guidelines

business and performance plans

cash handling and storage procedures

complaints and dispute resolution procedures

dispute resolution processes

ethical standards, codes of practice

formal procedures manual and quality assurance documents

goals, objectives, plans, systems and processes

legal and organisational policies and guidelines

mission statements, strategic plans

OHS policies, procedures and programs

policies and procedures in relation to client service

product or service development

quality and continuous improvement process and standards

referral procedures

use of compliance documentation such as:

product disclosure statements

statements of advice.

Legal and regulatory framework may include:

Australian Securities and Investments Commission (ASIC) regulations and guidelines

Consumer Protection Acts

corporations law

Trade Practices Act.

Money management solutions for trading strategy may include:

stop losses for worst case scenarios.