Unit of competency details

FNSASICV503 - Provide advice in derivatives (Release 1)


Usage recommendation:
Supersedes and is equivalent to FNSASICV503A - Provide advice in DerivativesUpdated to meet Standards for Training Packages 24/Mar/2015

Release Status:
ReleaseRelease date
1 1 (this release) 25/Mar/2015


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 081105 Investment And Securities  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 081105 Investment And Securities  30/Jul/2015 
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Unit Of competency

Modification History



Release 1

This version first released with FNS Financial Services Training Package Version 1.0.


This unit describes the skills and knowledge required to analyse client needs and provide advice ethically and professionally in derivatives, in compliance with industry regulations and codes of practice. It addresses the training requirements of current Australian Securities and Investments Commission (ASIC) and Australian financial services (AFS) licensing at Tier 1 level.

It applies to individuals who use well-developed interpersonal skills and excellent communication and self-management skills to perform a specialist advisory role in derivatives.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or ASIC for specific guidance on requirements.

Pre-requisite Unit


Analyse financial market products for client


Advise clients on financial risk


Determine client requirements and expectations


Record and implement client instructions

Unit Sector

ASIC units

Elements and Performance Criteria



Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish relationship with client and identify client’s objectives, needs and financial situation

1.1 Establish client’s knowledge about financial products and services

1.2 Respond to enquiries on derivatives products and services by explaining range of products and services available and their relevant fee and charging methodology

1.3 Inform client about role of adviser and licensee or principal responsible for adviser's conduct, including procedures for complaints handling and circumstances in which they should be engaged

1.4 Ask about client’s objectives and goals, and obtain personal, financial and business details to identify client needs

1.5 Establish product risk profile of client, including expectations of cash flow and relevant taxation obligations

2. Analyse client’s objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions

2.1 Undertake assessment of client needs using all information gathered, taking into account client’s product expectations and specific needs

2.2 Consult client throughout analysis for further clarification where necessary

2.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required

2.4 Assess and confirm product risk profile of client, demonstrating ASIC identified generic and specialist knowledge relevant to products being offered

2.5 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs

2.6 Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client

3. Present appropriate strategies and solutions to client and negotiate financial plan, policy or transaction

3.1 Apply appropriate knowledge for service or product offered when presenting product

3.2 Clearly and unambiguously explain proposed transaction to client

3.3 Reinforce all relevant details, terms and conditions of product and/or service

3.4 Disclose impacts and possible risks of solution in clear and concise manner

3.5 Provide supporting written documentation and guide client through key aspects of documentation

3.6 Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction

3.7 Confirm that client understands proposed plan, policy or transaction

4. Agree to plan, policy or transaction and complete documentation

4.1 Obtain client’s formal agreement to proposed plan, policy or transaction

4.2 Clearly explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing

4.3 Ensure that proposal and all other statutory and transactional documents are completed and signed off by client

4.4 Exchange copies of signed agreement and other appropriate documentation

5. Provide ongoing service where requested by client

5.1 Ensure that type and form of ongoing service, including reporting on performance and review of plan, policy or transaction, is agreed with client

5.2 Clearly explain all fees and costs for ongoing and specifically defined services, and check that client understands these details

5.3 Provide ongoing service as required

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.


Performance Criteria 



2.1, 2.5, 2.6

  • Recognises and interprets textual information from relevant sources


1.1-1.3, 1.5, 2.1, 2.2, 2.4-2.6, 3.2, 3.3, 3.5, 3.7, 4.1, 5.1

  • Uses clear, specific and industry related terminology to complete and consolidate workplace documentation

Oral Communication

1.1-1.5, 2.2, 2.4, 3.2-3.7, 4.2, 5.1, 5.2

  • Clearly articulates requirements using industry specific language appropriate to the audience and environment
  • Uses active listening and questioning to elicit information and confirm understanding


1.5, 5.2

  • Interprets financial product information and calculates client costs, risks and returns

Navigate the world of work

1.3, 2.4, 2.6, 3.3, 3.4, 5.1

  • Takes personal responsibility for following explicit and implicit policies, procedures and protocols to provide advisory services and documentation that comply with legal, statutory and organisational requirements
  • Extends knowledge of derivatives product features and use in investment schemes relevant to current role using research and investigative analysis

Interact with others

1.5, 2.4, 3.5, 3.6, 4.2, 5.2

  • Selects and uses the appropriate conventions and protocols when communicating with clients to build rapport, seek and share information, establish clear agreement and maintain an ethical service relationship
  • Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others

Get the work done

1.5, 2.1, 2.3-2.6, 3.1, 4.1, 4.3, 4.4, 5.3

  • Takes full responsibility for the planning, sequence and priority of tasks within own workload to achieve effective and compliant outcomes
  • Applies systematic and analytical decision-making processes to determine and implement investment solutions that meet client needs and financial requirements, including referral to specialist personnel as required
  • Uses the main features and functions of digital tools to complete work tasks

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 


Equivalence status 

FNSASICV503 Provide advice in derivatives

FNSASICV503A Provide advice in derivatives

Updated to meet Standards for Training Packages

Equivalent unit


Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe


Assessment requirements

Modification History



Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • interpret and comply with industry regulations and codes of practice
  • analyse client’s needs, financial situation and risk profile, and prepare appropriate strategies or solutions relating to derivatives
  • provide accurate and ethical advice on derivative products and services
  • implement the plan, policy or transaction once agreed by the client and complete documentation accurately.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must satisfy generic and specialist knowledge requirements relevant to the products and activities in which advice is given.

Generic knowledge  

  • analyse and provide an overview of the economic environment including:
  • characteristics and impact of economic and business cycles
  • interest rates and exchange rates
  • inflation
  • government monetary and fiscal policy
  • analyse and provide a detailed explanation of the operation of financial markets including:
  • roles played by intermediaries and issuers
  • structure and interrelationships within the financial markets
  • interrelationship between industry sectors
  • outline financial products, including:
  • concept of a financial product – general definition, and specific inclusions and exclusions
  • types of financial investment products
  • types of financial risk products.

Specialist knowledge 

  • explain the operation of derivatives markets including:
  • market participants
  • roles played by intermediaries
  • structure and interrelationships between the securities and derivatives sectors
  • outline the characteristics of a range of derivatives, the associated risks and investment options using derivatives products
  • explain theories of investment, portfolio management and management of investment and risk:
  • investment concepts
  • investment strategies
  • identification of types of risk
  • client risk profile
  • outline taxation issues in relation to derivatives, financial products and markets in which they operate
  • discuss the legal environment including disclosure and compliance covering:
  • role of the representative or adviser
  • relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act
  • relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser's recommendation
  • relevant industry standards and codes of conduct
  • regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements
  • complaints resolution procedures (external and internal)
  • ASIC market integrity rules
  • Australian Securities Exchange (ASX) 24 Operating Rules
  • elements of the Registered Representatives Examination (where relevant).

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:

  • office equipment, technology, software and consumables
  • derivatives product information.

Assessors must satisfy NVR/AQTF assessor requirements.


Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe