Unit of competency Outline

Date retreived
23/07/2026 1:14 AM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Prepare advice in derivatives

Prepare advice in derivatives

Unit of competency
National Code
FNSFPL617
State Code
OCI06
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
04/11/2020
View on TGA
State Implementation and Classification
Approved Date
11/03/2021
Field of Education
081105 - Investment And Securities
Original Release Date
11/03/2021
Nominal Hours
45
Description
This unit describes the skills and knowledge required to analyse client needs in regard to derivatives, and prepare advice ethically, professionally and in compliance with industry regulations and codes of practice.The unit applies to those who use well-developed interpersonal, communication and self-management skills when performing a specialist advisory role in derivatives. The requirement to prepare advice may come from authorised representatives, including financial advisers, shareholders, financial organisations, stockbrokers, trustees, agents and intermediaries.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.
Notes
Elements and Performance Criteria
1. Analyse client needs and risk profile
  • 1.1 Analyse all information gathered from authorised representative taking client product expectations and specific needs into account according to organisational procedures
  • 1.2 Consult with authorised representative throughout analysis for further clarification where necessary
  • 1.3 Identify need for specialist advice and ensure client is referred to appropriate adviser where required
  • 1.4 Assess and confirm client’s product risk profile according to expectations of cash flow and relevant taxation obligations
2. Develop derivatives strategies and solutions that meet client needs and risk profile
  • 2.1 Identify legislative, regulatory and code of practice requirements relevant to products being offered
  • 2.2 Determine required derivatives strategy based on analysis of derivative products, client risk profile and client’s needs
  • 2.3 Conduct required research, analysis and product modelling and apply stress tests for changes in market conditions
3. Provide strategies and solutions to authorised representative
  • 3.1 Draft required solution, plan, policy or transaction and provide to authorised representative
  • 3.2 Explain proposed solution, plan, policy or transaction to authorised representative
  • 3.3 Confirm required details, terms and conditions of product and service
  • 3.4 Disclose impacts and possible risks of solution and offer alternative solutions to authorised representative
  • 3.5 Prepare supporting written documentation and guide authorised representative through key aspects of documentation
  • 3.6 Discuss and clarify concerns and issues regarding proposed solution, plan, policy or transaction with authorised representative
  • 3.7 Confirm with authorised representative client’s understanding of proposed solution, plan, policy or transaction
4. Establish agreement and complete documentation process
  • 4.1 Obtain authorised representative’s formal agreement and sign-off to proposed solution, plan, policy or transaction
  • 4.2 Document fees, cost structures and timeframes for execution and processing
  • 4.3 Ensure that proposal and required statutory and transactional documents are completed and signed off by client
  • 4.4 Provide draft agreement and other required documentation to authorised representative
5. Agree to arrangements for providing ongoing services
  • 5.1 Prepare documentation of fees and costs for ongoing and specifically defined services according to organisational policies and procedures
  • 5.2 Agree to type and form of ongoing service to be provided
  • 5.3 Provide documented service arrangements to authorised representative for confirmation
  • 5.4 Implement procedures for agreed ongoing service according to organisational policies and procedures
No information
No information
No information
State Code National Code Title Type
BFX2 FNS60920 Advanced Diploma of Paraplanning Qualification