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Evidence Guide: FNSFMK601A - Price financial transactions

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

 

FNSFMK601A - Price financial transactions

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

Compile financial information and data

  1. Sources of financial data relating to financial products and financial markets are identified for analysis purposes and collected according to organisational practises
  2. Financial data is analysed to evaluate current market position and review the data against financial products
Sources of financial data relating to financial products and financial markets are identified for analysis purposes and collected according to organisational practises

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial data is analysed to evaluate current market position and review the data against financial products

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse and make prices

  1. Financial products are analysed utilising standard financial market investment concepts, against evaluated financial market data
  2. Evaluated financial product data is reviewed against the current market position of the financial product
  3. Financial market product price is reviewed against clientrequirements and credit rating and a financial transaction price formulated using standard organisational practises
  4. Client is advised of the financial transaction price in accordance with organisational guidelines
Financial products are analysed utilising standard financial market investment concepts, against evaluated financial market data

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluated financial product data is reviewed against the current market position of the financial product

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial market product price is reviewed against clientrequirements and credit rating and a financial transaction price formulated using standard organisational practises

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client is advised of the financial transaction price in accordance with organisational guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Record financial transaction

  1. Client acceptance of financial transaction price is confirmed according to organisation requirements and relevant transaction documentation is completed as necessary
  2. All transaction details are entered into the organisation dealing systems
Client acceptance of financial transaction price is confirmed according to organisation requirements and relevant transaction documentation is completed as necessary

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

All transaction details are entered into the organisation dealing systems

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:

compile financial information and data and analyse this to make financial prices

record financial transactions.

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 dealing 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 and organisational requirements, using questioning and active listening as required

advise client of financial product prices

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 and make financial calculations

develop transaction prices

use dealing system systems, spreadsheets and databases

use internet information

highly developed research and analysis skills for:

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

reviewing product information against client requirements

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

judgement skills for forming recommendations in complex situations

organisational skills, including the ability to:

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

the range of financial market products that can be traded

the economic environment, including:

characteristics and impacts of economic and business cycles

government monetary and fiscal policies

interest rates, exchange rates and inflation

financial markets operating software systems

risk and implications of financial positions

relevant mathematical principles and methodologies for pricing financial products and transactions

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.

Market position may include:

financial 'O' curves

forward exchange rate curves

future curves

yield curves.

Investment concepts may include:

all ordinaries and other market indicators

bull and bear markets

capital growth

cyclical stocks

diversification

dividends and dividend imputation (franked dividends)

growth stocks

market capitalisation

market turnover

portfolio construction strategies

ratios to analyse and select shares (PE ratio)

return on investment

top-down, bottom-up approach to investment analysis

types of order limits, at market

valuation methods for equities

yield.

Relevant data may include:

economic fundamentals:

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

wage index

job vacancies

building approvals

technical analysis and charting.

Financial 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 and transferable instruments

reciprocal purchase agreements

securities:

debt

equity.

Client requirements may include:

client credit rating

degree of risk undertaking

required return

size of transaction

terms of transaction.

Transaction details may include:

considerations

counterparty

face value

maturity date

price

start date

trade date.