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Evidence Guide: FNSSMS501A - Invest self-managed superannuation funds assets

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

 

FNSSMS501A - Invest self-managed superannuation funds assets

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

Assist trustees to devise investment objectives

  1. Investment objectives are established to meet the financial requirements of the client
  2. Investment objectives are recorded in accordance with legislative investment requirements
Investment objectives are established to meet the financial requirements of the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investment objectives are recorded in accordance with legislative investment requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assist trustees to devise investment strategy

  1. Portfolio benchmarks are developed for the investment strategy
  2. Investment strategy is developed in accordance with legislative and organisational requirements
  3. Products are selected so that defined financial objectives can be achieved
  4. Asset allocation/mix is determined so that investment objectives will be met
  5. Appropriate strategic variables are determined
Portfolio benchmarks are developed for the investment strategy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investment strategy is developed in accordance with legislative and organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Products are selected so that defined financial objectives can be achieved

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Asset allocation/mix is determined so that investment objectives will be met

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate strategic variables are determined

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assist trustees in the selection of investment services providers

  1. A range of performance criteria for service providers is established
  2. A preferred list of service providers is established
  3. Service providers are reviewed against established performance criteria to ensure the correct selection
  4. Suitable service providers are appointed that meet the established performance criteria
A range of performance criteria for service providers is established

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

A preferred list of service providers is established

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Service providers are reviewed against established performance criteria to ensure the correct selection

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Suitable service providers are appointed that meet the established performance criteria

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assist trustees to ensure regulatory limitations are adhered to

  1. Fund assets are invested in accordance with legislation requirements/trust deed requirements.
Fund assets are invested in accordance with legislation requirements/trust deed requirements.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assist trustees to comply with investment reporting requirements

  1. Member communication and disclosure requirements are provided in accordance with legislative requirements
  2. Reports produced by investment managers are received by trustees
Member communication and disclosure requirements are provided in accordance with legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reports produced by investment managers are received by trustees

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assist trustees to monitor investment service provider's activities

  1. Specialist advice is sought as identified and necessary (such as financial planners)
  2. Assets are allocated to investments (or investment dealers) in accordance with trustee's decisions
  3. Investment reports are analysed
  4. Fund results are reviewed against documented fund objectives and strategies
  5. Reallocation of assets is ensured according to results achieved/ or strategy direction
Specialist advice is sought as identified and necessary (such as financial planners)

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assets are allocated to investments (or investment dealers) in accordance with trustee's decisions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Investment reports are analysed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Fund results are reviewed against documented fund objectives and strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Reallocation of assets is ensured according to results achieved/ or strategy direction

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assist the trustee to monitor cash flow

  1. Liquidity requirements of the fund are managed taking into consideration current and future liabilities
Liquidity requirements of the fund are managed taking into consideration current and future liabilities

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:

devise investment objectives to meet client needs and strategies to support their objectives

access appropriate investment service providers

interpret and apply investment legislative and deed requirements

monitor service provider activities.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the 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 organisation financial records

access to organisational policies and procedures.

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

observing processes and procedures in workplaces

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports

setting and reviewing workplace business simulations or scenarios.

Guidance information for assessment

Required Skills and Knowledge

Required skills

communication skills to:

liaise with others, share information, using questioning and active listening as required

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform basic calculations related to self-managed superannuation funds

access and update account records electronically

use internet information

data analysis and interpretation skills

literacy skills to read and interpret documentation from a variety of sources and record and consolidate related information

interpersonal skills to relate effectively within a team environment

organisational skills, including the ability to plan and sequence work

Required knowledge

the range of potential services providers

cash flow and liquidity requirements

techniques for establishing investment objectives that meet legislative requirements

investment reporting and legislative requirements

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.

Legislative investment requirements may include:

arm's length test

Australian Prudential Regulation Authority (APRA) - changes of asset allocation

Australian Taxation Office (ATO) requirements

in-house asset test

limitations of derivatives

prohibiting of acquisition of assets from members/relations

prohibiting of borrowing

prohibiting of loans

prudent person test

small fund arrangements

sole purpose test.

Strategic variables may include:

current and future liabilities

diversification of investments

liquidity

risk and return

time horizons.

Service providers may include:

asset providers

consulting actuarial firms

custodians

investment managers.

Liquidity requirements may include:

administration costs

benefit payments (transfers out)

consultants' fees

government levies and charges

insurance costs

taxation.