Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
This unit describes the performance outcomes, skills and knowledge required to satisfy the training requirements of current Australian Securities and Investments Commission (ASIC) Australian Financial Services (AFS) licensing at Tier 1 level in the Margin Lending specialist area. |
Application of the Unit
Application of the unit |
This unit applies to job roles involving the provision of financial products and service advice to clients. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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FNSINC501A |
Conduct product research to support recommendations |
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FNSIAD501A |
Provide appropriate services, advice and products to clients |
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FNSCUS505A |
Determine client requirements and expectations |
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FNSCUS506A |
Record and implement client instructions |
Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Establish relationship with client and identify client's objectives, needs and financial situation |
1.1. The financial products and services knowledge level of the client is established 1.2. Enquiries in relation to Margin Lending products and services are responded to by explaining the range of products and services available and their relevant fee and charging methodology 1.3. Client is informed of the role of the adviser and the licensee or principal responsible for the adviser's conduct, including procedures for complaints handling and the circumstances in which they should be engaged 1.4. The client's personal, financial and business details are obtained and their needs identified by encouraging expression of their objectives and goals 1.5. Product risk profile of the client and their expectations of cash flow and relevant taxation obligations are established |
2. Analyse client's objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions |
2.1. An assessment of client's needs is undertaken, utilising all information gathered and taking into account client's product expectations and specific needs 2.2. Client is consulted throughout the analysis for further clarification where necessary 2.3. The need for specialist advice is analysed and the client is referred to appropriate adviser for higher level or specialist advice if required 2.4. Product risk profile of the client is assessed and agreed demonstrating understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered 2.5. An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of their needs 2.6. Relevant research, analysis and product modelling is conducted and an appropriate solution, plan, policy or transaction drafted for presentation to the client |
3. Present appropriate strategies and solutions to client and negotiate a financial plan, policy or transaction |
3.1. Product knowledge appropriate for the service or product offered is demonstrated when presenting the product 3.2. The proposed transaction is explained and discussed with the client in a clear and unambiguous way 3.3. Relevant details, terms and conditions of product/service are reinforced to client 3.4. Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client 3.5. Client is provided with written supporting documentation and guided through the key aspects of the documentation 3.6. Concerns or issues the client has regarding the proposed plan, policy or transaction are discussed and clarified 3.7. Confirmation is sought from client that they understand the proposed plan, policy or transaction |
4. Agree the plan, policy or transaction and complete documentation |
4.1. The client's formal agreement to the proposed plan, policy or transaction is gained 4.2. Associated fee and cost structures and timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client 4.3. Proposal and all other statutory and transactional documents are completed and signed off by the client 4.4. Copies of appropriate documentation and the signed agreement are exchanged |
5. Provide ongoing service where requested by client |
5.1. Type and form of ongoing service including reporting on performance and review of plan, policy or transaction is agreed with the client 5.2. Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client 5.3. Ongoing service is provided as required |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
operation of Margin Lending markets including:
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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Adviser may include: |
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Client needs , objectives and financial situation may include: |
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Client objectives and goals may be: |
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Product risk profile may include: |
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Client expectations may include: |
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The type of information to be obtained from the client may include: |
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Documentation may include: |
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Unit Sector(s)
Unit sector |
ASIC units |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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