Elements and Performance Criteria

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.
Interpersonal skills may include:
establishing knowledge level of the client
explaining the adviser's role
explaining the services offered
listening actively to what the client is saying and requesting
questioning to clarify and confirm the client's needs
seeking feedback from the client to confirm understanding of needs.
Clients may include:
borrowers
exporters
importers
investors
traders.
Financial needs may include:
acquisition and disposal of financial assets
cash flow management
foreign currency receipts and payments
foreign currency risk management
funding
interest rate risk management
trading profits.
Organisational requirements may be outlined and reflected in:
assessment and equity principles and practice guidelines
business and performance plans
complaints and dispute resolution procedures
ethical standards, codes of practice
goals, objectives, plans, systems and processes
legal and organisational policies and guidelines
mission statements, strategic plans
policies and procedures in relation to client services
product or service development
quality and continuous improvement processes and standards
quality assurance and procedure manuals.
Valid and relevant information may include:
cash flows:
required
projected
client activities and functions
client current and proposed operating environment, assets and systems
details of clients needs and objectives for:
income
security
liquidity
time period
existing client risk management strategies
individual investment preferences and a version or tolerance to risk
other client details such as:
employment security
likely events and their impact on the client
age
other products they have
relevant personal, financial and business details
taxation obligations.
Risk to be identified may include:
credit risk
funding risk
legal risk
market risk
operational risk
reputation risk
settlement risk
delivery risk.
Assessment criteria may be based on:
prioritised G30 recommendations for managing derivatives risk
AS/NZS 4360: Risk Management
qualitative factors
quantitative factors
semi-quantitative factors
Supply Chain Operations Reference (SCOR).
Vulnerability for a range of financial products may relate to:
access restrictions on product
borrowing risk or gearing
economic impact
liquidity risk
market and sector risks:
economic cycle
fixed interest
risk factors and return expectations
specific product risk
volatility of income and capital.
Risk management alternatives may include:
comparative analysis
forecasting
periodic reporting
quantification of risks
referral to decision making authorities.
Relevant legislation may include:
applicable State and Territory legislation and regulations
Australian Securities and Investments Commission (ASIC) Act, policy guidelines
Banking Act
Commonwealth Criminal Code
contract law
Corporations Act
Financial Corporations Act
Financial Services Reform Act (FSRA)
Financial Transaction Reports Act
industry codes of practice
legislation and regulations administered by Australian Prudential Regulation Authority (APRA)
Privacy Amendment Act (Private Sector)
Reserve Bank Act
Superannuation Acts and regulations
Taxation Acts and regulations
Trade Practices Act.
Retail client disclosure documents may include:
financial services guide
product disclosure statement
statement of advice.
Documentation may include:
advice
general correspondence
legal, government and professional documents
meeting notes
recommendations
records of telephone conversations
references to all evidence/information considered
reports.
Filing of information may include:
electronic
manual.

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:
determine the risk profile of client
interpret and comply with relevant legislation
assess the impact of financial risks to the client and the organisation and recommend strategies to control risk
accurately review and prepare risk assessment findings in a format suitable for presentation including client disclosure documents
provide up to date advice on the risks and benefits of financial products and services.

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.

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 or scenarios
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment