Elements and Performance Criteria

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.


any representative of a licensee

employee or owner

all natural persons who provide financial product advice to retail clients


risk factors and return expectations

volatility of income and capital

market and sector risks (economic cycle, fixed interest, property, stock market)

access restrictions on product

economic

specific product risk

borrowing risk/gearing


beliefs about performance

security

conservative

risk

fluctuations in income and/or capital

moderate

speculator

passive

active

long term or short term investor


debt position

security

expectations of income from this product

family income

business needs

expectations of access to product

expectations of lifecycle and length of product


computer and manual applications

written advice

disclaimers

disclosures

product application forms


details of the customers needs and objectives for income, security, liquidity, and the time period the customer is planning for

details of liabilities and potential liabilities of the customer

individual investment preferences and aversion or tolerance to risk

other customer details such as employment security, likely events and their impact on the customer, age and other products they have

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

To achieve competency in this unit, a person must be able to demonstrate:

knowledge of industry regulations and codes of practice, financial products and services, financial markets and characteristics, roles of other specialist providers and licensees, as well as the impacts of taxation on the clients financial requirements for the specific products offered
for insurance products, competence in this unit is subject to the staff members' approval/authority to accept the transfer of risk

Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.

Delivery/assessment relationship to other units:
Prerequisites for this unit have been obtained from standards within the securities industry sector.
Industry requirements to satisfy Tier 1 requirements are as follows:
FNSFPLN501B Comply with financial planning practice ethical, operational guidelines and regulations
FNSFPLN502B Conduct financial planning analysis and research
FNSFPLN503B Develop and prepare financial plan
FNSFPLN504B Implement financial plan
FNSFPLN505B Review financial plan and provide ongoing service.

Method of assessment:
For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.
Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.
Registered Training Organisations (RTOs) need to be mindful of the legislative obligations of licensees, where ASIC have prescribed the opportunities where recognition of current competence can be undertaken for these units.

Resources required for assessment:
Unless otherwise specified, there are no significant resource implications for assessment of this unit, apart from access to a relevant workplace or closely simulated office environment and the use of a range of office equipment, technology and consumables. These may include standard commercial computer hardware, software, telephones, facsimiles, and other relevant office equipment.