Elements and Performance Criteria

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.
Technical analysis is:
the method of analysing the historical data of a security usually involving a mathematic formula that is calculated for every day in the history then plotted on a chart.
Fundamental analysis involves:
considering the overall economy, the sector in which a business operates, and particular company's financial statements to calculate measures or 'ratios' such as:
earnings per share
price-earnings ratio
dividend yield.
analysis using a top-down approach or bottom-up approach.
Quantitative methodologies may:
assess the time series and distributional properties of financial series
model and estimate the risk-return relationship
estimate and test capital asset pricing models
estimate values at risk.

could also involve:
modelling
estimating
testing the volatility of financial markets.
Financial markets risks may include:
compliance risk
client credit risk
fraudulent activity risk
legal risk
liquidity risk
market risk
operational or security risk
reputation risk
settlement agency or bank risk
systemic risk
technology inadequacy or failure risk.
Strategy
arbitrage
investment
relative value
multi-asset
speculative.
Organisation's policies and guidelines may be outlined and reflected in:
access and equity principles and practice guidelines
business and performance plans
cash handling and storage procedures
complaints and dispute resolution procedures
dispute resolution processes
ethical standards, codes of practice
formal procedures manual and quality assurance documents
goals, objectives, plans, systems and processes
legal and organisational policies and guidelines
mission statements, strategic plans
OHS policies, procedures and programs
policies and procedures in relation to client service
product or service development
quality and continuous improvement process and standards
referral procedures
use of compliance documentation such as:
product disclosure statements
statements of advice.
Legal and regulatory framework may include:
Australian Securities and Investments Commission (ASIC) regulations and guidelines
Consumer Protection Acts
corporations law
Trade Practices Act.
Money management solutions for trading strategy may include:
stop losses for worst case scenarios.

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:
interpret compliance requirements for organisational and industry financial trading procedures
analyse client needs to develop appropriate strategies to suit their circumstances
access and use appropriate tools and techniques to determine suitable financial services for clients.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services 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 an integrated financial software system and data

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
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment