Establish, supervise and monitor practice systems to conform with legislation and regulations

This unit describes the performance outcomes, skills and knowledge required to establish, supervise and monitor systems to ensure that a practice or unit of business conforms to legislative and regulatory requirements and meets standards defined in professional codes of practice.This unit has application to job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.


This unit requires the application of administrative and organisational skills and may be applied to a professional practice or to a discrete unit of a larger organisation in any sector of the financial services industry.

This unit does not cover the skills and knowledge required for meeting Australian Securities and Investments Commission (ASIC) requirements of an individual financial planning licensee or authorised representative.

Elements and Performance Criteria



1. Identify legislation, regulations and codes of practice relevant to the practice

1.1. The scope and services of the practice are matched to legislation, regulations and codes of practice, and compliance issues and procedures are identified

1.2. The scope of the practice is matched to compliance issues and relevant compliance procedures are identified

2. Establish and document procedures for compliance of the practice with relevant legislation, regulations and codes of practice

2.1. Key stakeholders are identified and consulted with regard to issues and proposed procedures and guidelines

2.2. Compliance issues and procedures are incorporated into the practice guidelines and appropriately documented

2.3. Sources of information and advice on legislative and regulatory requirements are identified and documented

2.4. Procedures for ensuring currency of information within the practice on its legislative and regulatory requirements and codes of practice are established and documented

2.5. Ethical procedures and standards for the interpretation of legislation, regulations and codes of practice are established and incorporated into the practice guidelines

2.6. Procedures for monitoring compliance with legislation, regulations and codes of practice within the practice and for outsourced third party providers are established

3. Establish risk management procedures for compliance with legislation and regulations

3.1. A structured and systematic risk management process, which takes into account the practice obligations under the Corporations Act, is established and documented

3.2. Risks of non-compliance are identified and documented

3.3. Measures to avoid non-compliance and steps to be taken in the event of breaches of obligations are established, documented and communicated to staff

3.4. Measures are consistent with ASIC regulations for licensees and authorised representatives

4. Identify and establish appropriate resources for ensuring the practice can meet its legislative and regulatory requirements

4.1. Appropriate levels of financial, technological and human resources are identified to meet the practice's legislative and regulatory requirements

4.2. Training and assessment procedures are implemented to ensure employees have the skills needed to comply with legislative and regulatory requirements

4.3. Clear decision making procedures on legislative and regulatory issues are established including identification to employees of licensees, authorised representatives, directors and other staff carrying legislative and regulatory responsibilities

4.4. Information technology systems and other technological resources are established and maintained to the level necessary to enable compliance with legislative and regulatory requirements

4.5. Budgets, requisition procedures, and other internal financial systems clearly identify support for legislative and regulatory functions

Required Skills

Required skills

highly developed communication skills to:

determine and confirm financial practice requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

provide instructions to staff on compliance issues and requirements

use language and concepts appropriate to cultural differences

research skills such as:

accessing and managing information

interpreting documentation

coordinating tasks

well-developed literacy skills to read and interpret documentation from a variety of sources and recording, gathering and consolidating financial information

numeracy and IT skills for:

accessing and using appropriate software such as spreadsheets and databases

using internet information

identifying technical requirements to meet compliance obligations

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

well-developed learning skills to maintain knowledge of changes to compliance legislation and requirements

risk management and problem solving skills to identify any compliance or other issues that have the potential to impact on the practice compliance procedures and to develop options to resolve these issues when they arise

teamwork skills

project management skills to establish compliance systems and related IT requirements

Required knowledge

documentation systems including registry and library processes

financial practice administrative processes and systems

human resources procedures and training options

in-depth knowledge of financial professional services including process and products

office IT systems and software

professional development options for financial personnel

relevant acts, regulations, codes of practice and legal resources

risk management techniques and tools

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:

identify the relevant legislation, regulations and codes of practice using knowledge of a wide range of available information sources

develop strategies to obtain information not readily available within a practice and assess its accuracy and relevance

assess risks and benefits associated with using legislation and regulation databases and systems against practice requirements to make recommendations

apply cost-benefit analyses to systems and procedures

comply with risk management standards.

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 relevant legislation, regulations and codes of practice.

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 workplace projects and business simulations/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.

Legislation and regulations include all legislation and regulations that apply to a practice providing professional services. This includes but is not limited to:

applicable State or Territory legislation and regulations

ASIC Act and other legislation administered by ASIC

Corporations law

legislation and regulations administered by Australian Prudential Regulation Authority (APRA)

Life Act

occupational health and safety (OHS) legislation

Privacy legislation

superannuation Acts and regulations

Taxation Acts and regulations

Trade Practices Act

Workplace Relations Act, State Industrial Relations Acts, awards and enterprise agreements.

Codes of practice in the finance industry include but are not limited to those relating to:


financial advisers

practice managers.

Key stakeholders may include:

those who need to authorise procedures and guidelines and those who are key to implementing them.

Risks are:

managed in compliance with Australian Standard 4360 Risk Management or equivalent.

Human resources may include:

client service representatives

financial planners

general support staff



personal or clerical assistants


specific skilled personnel

account managers



Training may include:

accredited training delivered by a Registered Training Organisation (RTO)

by industry or common interest groups

external seminars

induction training





Unit sector

Practice management

Employability Skills

This unit contains employability skills.

Licensing Information

Not applicable.