Unit of competency details

Unit descriptor 

This unit describes the function involved in assisting clients or trustees select and monitor the performance of outcomes from outsourced services such as accountants, actuaries, solicitors, insurers, investment managers and financial planners. It encompasses supporting the client/trustee in establishing a scope for outsourced services, establishing criteria for outsourced services, selecting and engaging outsourced suppliers and monitoring the performance of outsourced services, but does not require expertise in the functions of outsourced service providers.

This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).

Application of the unit 

This applies to job roles such as an adviser regarding taxation, law or dealing in financial products for a self-managed superannuation fund.

Prerequisite units 

Employability skills 

This unit contains employability skills.

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.

ELEMENT 

PERFORMANCE CRITERIA 

1. Assist client/trustee establish scope for outsourced services

1.1. A review is conducted to determine the extent to which selected activities are conducted internally by members or by outsourced services

1.2. Activities within the fund that can or are required to be outsourced are identified

1.3. Scope of possible outsourced services  is identified

1.4. Legislative and regulatory requirements  relating to required services are identified

1.5. Recommendation and/or decision on scope of outsourced services is made according to fund requirements

1.6. Engagement criteria  are established in negotiation with client/trustee

2. Assist the client/ trustee to establish performance criteria for outsourced services

2.1. Scope of expertise required from the outsourced service is defined and documented

2.2. Performance standards  for the provision of monitoring service standards and performance outcomes from outsourced services providers are established and documented

2.3. Monitoring and measuring processes for performance outcomes from outsourced services are established and documented

2.4. Reporting processes for outsourced services are established and documented

2.5. Briefing documents are prepared

3. Assist the client/ trustee to select and engage outsourced suppliers

3.1. Client/trustee is assisted to select suppliers of outsourced services against established criteria

3.2. Outsourced suppliers are engaged formally

3.3. Outsourced suppliers are briefed on required service

3.4. Members are informed about outsourced services and working implications

4. Assist the client/trustee to monitor the performance outcomes of outsourced services

4.1. Performance outcomes of outsourced services are reviewed against performance criteria and fund requirements

4.2. Further review periods are established

4.3. Required changes in services  are negotiated

4.4. Supplier performance is documented and communicated to members

4.5. Outsourced services are disengaged as required

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• well-developed communication skills to:

• liaise with others, share information, using questioning and active listening as required
• use language and concepts appropriate to cultural differences

• numeracy and IT skills to:

• perform calculations related to superannuation fund
• access and update account records electronically
• use internet information

• well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate related information
• data analysis and interpretation skills
• interpersonal skills to relate effectively within a team environment
• organisational skills, including the ability to plan and sequence work

Required knowledge 

• communication and documentation requirements of specialists and procedures for engaging with specialist services
• features, compliance and reporting requirements of the Superannuation Industry (Supervision) (SIS) Act, Taxation Act, Corporations Act and other relevant legislation
• industry codes of practice and relevant legislation
• organisation policy and guidelines
• performance management procedures
• relationship between actuary/auditor and trustee under SIS
• relevant regulatory bodies and legislation
• how to determine the reputation and expertise of service providers in the industry
• risk management strategies
• scope of service provisions
• the consequences of non-compliance
• the role and responsibilities of specialist services used in superannuation
• timeframe requirements for compliance reports for specialist services

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:

• establish scope and criteria for outsourced services and select, engage and monitor outsourced suppliers
• implement tendering processes and assess service applications
• assess supplier performance and renegotiate as required
• review legal contracts.

Context of and specific resources for assessment 

Assessment must ensure:

• competency is demonstrated in the context of the 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 organisation financial records
• access to organisational policies and procedures.

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
• observing processes and procedures in workplaces
• verbal or written questioning on underpinning knowledge and skills
• evaluating samples of work
• accessing and validating third party reports
• setting and reviewing workplace business simulations or scenarios.

Guidance information for assessment 

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.

Outsourced services  may include:

• actuaries
• auditors
• communication consultants
• employer relationship managers
• financial planners
• IT specialists
• insurers
• investment managers
• sales and marketing specialists
• solicitors
• trustees.

Legislative and regulatory requirements  may include guidelines covered by, as amended:

• anti-discrimination legislation
• Corporations Act
• Family Law Legislation Amendment Superannuation Act
• Financial Services Reform Act (FSRA)
• Income Tax Assessment Act
• industrial legislation
• Insurance Act
• Privacy Act
• Retirement Savings Account Act
• stamp duty legislation
• Superannuation (Resolution of Complaints) Act
• Superannuation (Unclaimed Moneys and Lost Members) Act
• Superannuation Contributions Tax (Assessment and Collection) Act (surcharge)
• Superannuation Guarantee (Administration) Act (SGAA)
• Superannuation Industry (Supervision) Act (SIS)
• Superannuation Industry (Supervision) Regulations
• trade practices legislation
• Trustee Acts or Trust Acts in each State and Territory
• other relevant State/Territory and Commonwealth legislation.

Engagement criteria  may include:

• past experience and performance record of provider
• price structure of provider service
• public profile of provider
• quality of advice from provider
• size of outsourced provider.

Performance standards  may include:

• available personnel
• communication and documentation standards
• completion dates
• data availability
• document presentation
• experience
• information technology (IT) compatibility
• interpersonal relations
• location
• number of outcomes
• performance goals
• procedures
• reputation
• response times
• service dedication
• specific financial position and returns
• staff communication
• value for money.

Required changes in service  may include:

• changes in the way service is implemented
• increased communication and/or documentation
• increased or decreased service
• increased standards of performance.

Unit sector 

Self-managed superannuation

Competency field 

Co-requisite units