Provide advice in Managed Investments

This unit describes the performance outcomes, skills and knowledge required to satisfy the training requirements of current Australian Securities and Investments Commission (ASIC) Australian Financial Services (AFS) licensing at Tier 1 level in the Managed Investments specialist area.


This unit applies to job roles involving the provision of financial products and service advice to clients.



Conduct product research to support recommendations


Provide appropriate services, advice and products to clients


Determine client requirements and expectations


Record and implement client instructions

Elements and Performance Criteria



1. Establish relationship with client and identify client's objectives, needs and financial situation

1.1. The financial products and services knowledge level of the client is established

1.2. Enquiries in relation to Managed Investment products and services are responded to by explaining the range of products and services available and their relevant fee and charging methodology

1.3. Client is informed of the role of the adviser and the licensee or principal responsible for the adviser's conduct including procedures for complaints handling and the circumstances in which they should be engaged

1.4. The client's personal, financial and business details are obtained and their needs identified by encouraging expression of their objectives and goals

1.5. Product risk profile of the client and their expectations of cash flow and relevant taxation obligations are established

2. Analyse client's objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions

2.1. An assessment of client's needs is undertaken, utilising all information gathered and taking into account client's product expectations and specific needs

2.2. Client is consulted throughout the analysis for further clarification where necessary

2.3. The need for specialist advice is analysed and the client is referred to appropriate adviser for higher level or specialist advice if required

2.4. Product risk profile of the client is assessed and agreed demonstrating understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered

2.5. An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of their needs

2.6. Relevant research, analysis and product modelling is conducted and an appropriate solution, plan, policy or transaction drafted for presentation to the client

3. Present appropriate strategies and solutions to client and negotiate a financial plan, policy or transaction

3.1. Product knowledge appropriate for the service or product offered is demonstrated when presenting the product

3.2. The proposed transaction is explained and discussed with the client in a clear and unambiguous way

3.3. Relevant details, terms and conditions of product/service are reinforced to client

3.4. Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client

3.5. Client is provided with written supporting documentation and guided through the key aspects of the documentation

3.6. Concerns or issues the client has regarding the proposed plan, policy or transaction are discussed and clarified

3.7. Confirmation is sought from client that they understand the proposed plan, policy or transaction

4. Agree the plan, policy or transaction and complete documentation

4.1. The client's formal agreement to the proposed plan, policy or transaction is gained

4.2. Associated fee and cost structures and timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client

4.3. Proposal and all other statutory and transactional documents are completed and signed off by the client

4.4. Copies of appropriate documentation and the signed agreement are exchanged

5. Provide ongoing service where requested by client

5.1. Type and form of ongoing service including reporting on performance and review of plan, policy or transaction is agreed with the client

5.2. Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client

5.3. Ongoing service is provided as required

Required Skills

Required skills

communication skills to:

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

negotiate financial service transactions with clients

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

literacy skills to:

read and interpret documentation from a variety of sources

analyse information and products to ensure appropriateness to client needs, currency and accuracy

complete documentation accurately

researchand analysisskills foraccessing, interpreting and managing complex information

numeracy and IT skills to:

interpret financial information and calculate client costs, risks and returns

access and use appropriate software such as spreadsheets and databases

use internet information

interpersonal skills to establish rapport with clients and to liaise with otherteam members

self-management skills for complying with ethical, legal and procedural requirements

learning skills to maintain knowledge of products and services and any changes to compliance legislation and requirements

judgement skills for forming suitable and ethical recommendations in advising situations

organisational and time management skills to sequence tasks, meet timelines and arrange meetings

Required knowledge

the economic environment, characteristics and impact of economic and business cycles, including:

interest rates

exchange rates


government monetary and fiscal policies

the operation of financial markets and the roles played by intermediaries and issuers

structure and inter-relationships within financial markets and inter-relationships between industry sectors

financial products, including:

the concept of a financial product

general definition

specific inclusions and exclusions

types of financial investment products

identification of types of risks

taxation issues in relation to Managed Investments products and markets in which they operate

advisory functions including:

the role of the representative or adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

relevant industry codes of practice and conduct

complaints resolution procedures (internal and external)

regulators guidelines including the requirements of ASIC

types of products:

concept of Managed Investments

specialist knowledge of the range of products offered under Managed Investments schemes, or a specific product offered under a scheme:

property trusts, real estate investment strategies, valuation techniques, property management

equity trusts, fixed interest trusts

serviced strata schemes

primary production schemes

film schemes

time-sharing schemes

theories of investment, portfolio management and management of investment and risk:

investment concepts

investment strategies

identification of types of risk

client risk profile

the legal environment and disclosure and compliance:

the role of the representative or adviser

relevant legal principles (e.g. Corporations Act, Financial Services Reform Act (FSRA), Trade Practices Act)

the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith)

full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation

Evidence Required

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 and comply with industry regulations and codes of practice

analyse clients needs and advise them ethically and accurately on managed investment products and services

assess the impacts of taxation on client's financial requirements for specific products offered.

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 Managed Investments product information.

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 business scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Adviser may include:

all natural persons who provide financial product advice to retail clients

any representative of a licensee

employee or owner.

Client needs, objectives and financial situation may include:

business needs

debt position

expectations of access to product

expectations of income from this product

expectations of life cycle and length of product

family income


Client objectives and goals may be:




Product risk profile may include:

access restrictions on product

borrowing risk/gearing


market and sector risks:

economic cycle

fixed interest


stock market

risk factors and return expectations

specific product risk

volatility of income and capital.

Client expectations may include:

personal involvement:



risk profile:




their beliefs about performance

expectations of fluctuations in income or capital

being a long-term or short-term investor

need for security.

The type of information to be obtained from the client may include:

details of liabilities and potential liabilities of the client

details of the client's needs and objectives for income, security, liquidity, and the time period the client is planning for

individual investment preferences and aversion or tolerance to risk

other client details such as:

employment security

likely events and their impact on the client


other products they have.

Documentation may include:



product application forms

written advice.


Unit sector

ASIC units

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.