Unit of competency details

Descriptor 

This unit describes the knowledge and skills required for a financial counsellor to take a structured approach to providing clients with a resource in a pre-determined format to empower them to make informed decisions about present and future financial issues

Application 

This unit is to be applied in the context of providing clients with a resource to assist them to make informed decisions about financial issues

In order to qualify for the ASIC exemption from the delivery of financial service contained in the Financial Services Reform Amendment Act (2003) a financial counsellor must be eligible for membership of the financial counselling association recognised in their State or Territory

Financial counselling operates from a strengths-based and client-focused model

Employability Skills 

This unit contains Employability Skills

Elements define the essential outcomes of a unit of competency.

The Performance Criteria specify the level of performance required to demonstrate achievement of the Element. Terms in italics are elaborated in the Range Statement.

ELEMENT 

PERFORMANCE CRITERIA 

1. Clarify client's financial position

1.1 Use available information to prepare a statement of assets and liabilities for the client

1.2 Work with the client to prepare a statement of income and expenditure in line with their immediate and ongoing financial situation

1.3 Identify and clarify for the client the different elements of their financial position

2. Develop and use advocacy and negotiation tools

2.1 Develop written tools for use in advocacy and negotiation 

2.2 Apply appropriate negotiation tools and techniques to advocate and negotiate on behalf of client

2.2 Undertake telephone and face-to-face negotiations as required to meet and/or improve client's financial position

2.3 Obtain signed letter of authority to act on behalf of client

2.4 Collect and use appropriate documentation to support the advocacy process

3. Collect and develop resources to assist and inform clients

3.1 Use standard checklists to develop and review resource materials that contain relevant and current information

3.2 Maintain currency and completeness of available resources

3.3 Prepare resources as a basis for addressing duty of care requirements when undertaking financial counselling with clients

4. Provide client with relevant resources

4.1 Provide client with relevant, clear and targeted resource materials to inform and assist the client to improve their financial position

4.2 Use a standard format to develop an action plan  in partnership with client

4.3 Undertake research as a basis for preparing an information package on client issues for their later reference

5. Produce quality written materials to assist client outcomes

5.1 Ensure writing is succinct and clear and presented in a logical and sequential way to match third party needs with client objectives

5.2 Ensure all written documentation produced addresses financial counselling sector standards and practices

5.3 Prepare and provide appropriate and timely correspondence to clients and other parties as required

REQUIRED SKILLS AND KNOWLEDGE 

This describes the essential skills and knowledge and their level required for this unit.

Essential knowledge :

The candidate must be able to demonstrate essential knowledge required to effectively do the task outlined in elements and performance criteria of this unit, manage the task and manage contingencies in the context of the identified work role

These include knowledge of:

• Agency policies and procedures
• Legal framework
• Financial systems and framework
• Social, economic and government policy context
• Duty of care
• Support networks
• Model for preparing financial statements and budgets
• Social, economic and government policy context

Essential skills :

It is critical that the candidate demonstrate the ability to:

• Use a range of communication skills effectively, including:

• telephone
• written
• face-to-face

• Demonstrate application of skills in:

• research
• negotiation
• advocacy
• client facilitation

• Present evidence to support a case
• Research and prepare resource information for clients
• Research and prepare resource tools for use in financial counselling

EVIDENCE GUIDE 

The evidence guide provides advice on assessment and must be read in conjunction with the Performance Criteria, Required Skills and Knowledge, the Range Statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate this unit of competency :

• The individual being assessed must provide evidence of specified essential knowledge as well as skills
• This unit is best assessed in the workplace or in a simulated workplace under the normal of range conditions
• Assessment should be gathered on one or more occasions but must reflect the normal range of client situations encountered in the workplace

Access and equity considerations :

• All workers in community services should be aware of access, equity and human rights issues in relation to their own area of work
• All workers should develop their ability to work in a culturally diverse environment
• In recognition of particular issues facing Aboriginal and Torres Strait Islander communities, workers should be aware of cultural, historical and current issues impacting on Aboriginal and Torres Strait Islander people
• Assessors and trainers must take into account relevant access and equity issues, in particular relating to factors impacting on Aboriginal and/or Torres Strait Islander clients and communities

Context of and specific resources for assessment :

• This unit can be assessed independently, however holistic assessment practice with other community services units of competency is encouraged
• Resources required for assessment of this unit include access to:

• an appropriate workplace where assessment can take place or simulation of realistic workplace setting for assessment

Method of assessment :

• In cases where the learner does not have the opportunity to cover all relevant aspects in the work environment, the remainder should be assessed through realistic simulations, projects, previous relevant experience or oral questioning on 'What if?' scenarios
• Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on Essential knowledge and skills and consideration of required attitudes
• Where performance is not directly observed and/or is required to be demonstrated over a 'period of time' and/or in a 'number of locations', any evidence should be authenticated by colleagues, supervisors, clients or other appropriate persons

Related units :

This unit is part of a suite of units that describe the financial counselling process and are to be assessed concurrently or sequentially:

• CHCFIN501A Identify and apply technical information to assist clients with financial issues
• CHCFIN502A Facilitate the financial counselling process
• CHCFIN503A Develop and use financial counselling tools and techniques

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. Add any 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.

Information on clients financial situation and relevant personal details will include :

• Income and entitlements
• Credit and debt commitments
• Assets
• Household expenditure
• Possible sources of financial assistance
• Employment status
• Constituents of Household
• Any personal issues with direct impact on the financial situation

Status and validity of contracts may include :

• Original documents
• Signatories
• Guarantors
• Co-borrowers
• Timeframe
• Contract calculations
• Security
• Payment history

Written tools for use in advocacy and negotiation may include :

• Letters to achieve a specific advocacy purpose
• Letter to represent the needs of specific clients or client groups
• Reports for funding bodies
• Citizens advocacy kits
• Checklists

Action plan may be :

• Short term or long term

Strategies to address their circumstances may include :

• Assessment of the legality of debts
• Assessment of possible legal remedies
• Development of a money plan
• Strategies for increasing income
• Strategies for decreasing expenditure
• Strategies for reducing credit and debt problems
• Referral to other appropriate professionals

Referrals to range of support services that may address client issues may include :

• Government income support agencies
• Support agencies for mental health, domestic violence, alcohol and other drugs (AOD) issues, gambling counselling etc.
• Accommodation agencies including emergency housing agencies
• Community health centres
• Family support agencies
• Local community support networks
• Financial assistance agencies
• Emergency relief agencies
• Dispute Resolution Services
• Free legal services
• Other Counselling services

Clinical supervision may include :

• General supervision by a senior financial counsellor
• Mentor group meetings
• Review with peers
• Interagency meetings to discuss cases

Professional development activities may include :

• In-house training
• External training
• Attendance at conferences, seminars
• Clinical supervision
• Attendance at industry association activities
• Case presentations/discussions