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Evidence Guide: FNSFMK522 - Apply financial product knowledge in the context of the deal transaction cycle

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

 

FNSFMK522 - Apply financial product knowledge in the context of the deal transaction cycle

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

Analyse financial markets products and their characteristics

  1. Review the relationship between risk and return for financial products
  2. Compare different types of financial products traded in exchange-traded and over-the-counter (OTC) markets and the variables impacting their pricing
  3. Assess the capabilities, benefits and risks of different physical and derivative financial products
  4. Identify risk management strategies to manage the risks inherent in the financial products
  5. Discuss how and why various financial market products are used by market participants
Review the relationship between risk and return for financial products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare different types of financial products traded in exchange-traded and over-the-counter (OTC) markets and the variables impacting their pricing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess the capabilities, benefits and risks of different physical and derivative financial products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify risk management strategies to manage the risks inherent in the financial products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Discuss how and why various financial market products are used by market participants

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse the deal transaction cycle

  1. Identify categories of trading strategies
  2. Differentiate the trading processes for exchange-traded and OTC markets
  3. Outline the steps in the trading, clearing and settlement processes for exchange-traded financial products
  4. Determine the steps for trading, confirming, settling, reconciling and managing collateral for OTC products
  5. Identify risks and risk management strategies in transaction processes for financial markets products
Identify categories of trading strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Differentiate the trading processes for exchange-traded and OTC markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Outline the steps in the trading, clearing and settlement processes for exchange-traded financial products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine the steps for trading, confirming, settling, reconciling and managing collateral for OTC products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify risks and risk management strategies in transaction processes for financial markets products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain financial market knowledge

  1. Assess the impact of technological and regulatory factors on financial products and how they are traded and processed
  2. Maintain professional competence in market knowledge in accordance with codes of conduct and regulatory and organisational requirements
  3. Implement processes for maintaining up-to-date knowledge of relevant aspects of financial markets
Assess the impact of technological and regulatory factors on financial products and how they are traded and processed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain professional competence in market knowledge in accordance with codes of conduct and regulatory and organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement processes for maintaining up-to-date knowledge of relevant aspects of financial markets

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Required Skills and Knowledge

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:

assess three different problems in the deal transaction cycle by applying knowledge of financial products and the deal cycle.

In the course of the above, the candidate must:

analyse and evaluate key issues identified

review analysis with appropriate individuals in the organisation.

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:

methods for sourcing and maintaining currency of own knowledge of financial markets products

characteristics, capabilities and liabilities of common types of financial market products traded in OTC and exchange-traded markets, including:

physical and derivative financial products

factors affecting product use by market participants

variables impacting product pricing

risks associated with each type of financial product

steps in the transaction cycle for OTC and exchange-traded financial products

operation of OTC and exchange-traded markets, including:

main participants and their key objectives

relevant industry standards and codes of conduct

relevant regulatory requirements

organisational procedures for:

accessing financial product information

codes of conduct, and regulatory and organisational requirements relating to maintaining and enhancing financial market knowledge.