Unit of competency Outline

Date retreived
23/07/2026 5:15 AM AWST

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Establish and manage a trust account

Establish and manage a trust account

Unit of competency
National Code
FNSCNV506A
State Code
D4079
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
31/07/2014
Field of Education
081105 - Investment And Securities
Original Release Date
31/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to establish, manage and administer a trust or controlled money account in a conveyancing practice.It encompasses reviewing for compliance with trust accounts requirements, establishing and managing trust accounts, maintaining records of trust transactions, and monitoring and reviewing of trust accounts.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Review trust account for compliance with trust account requirements
  • 1.1. Practice trust account requirements are clearly identified, accurately recorded and continuously updated in line with relevant legislation and regulations
  • 1.2. Policies and procedures for accurate trust account keeping are developed which comply with trust account requirements, key principles of accounting and financial management, and legislative requirements
  • 1.3. Criteria for evaluating electronic and manual trust accounting systems are identified and applied to ensure compliance with all trust account requirements
2. Establish and manage trust accounts
  • 2.1. Source documents for trust transactions are identified and accessed in line with legislative requirements
  • 2.2. Documentation of trust records and transactions are produced to give an accurate record of practice transactions on behalf of clients
  • 2.3. Transactions are supported by appropriate authorisation and documentation and are in line with practice and legislative requirements
  • 2.4. Entries and transactions are promptly and accurately recorded in line with relevant trust account requirements, and can be provided on demand
  • 2.5. Discrepancies in entries or documentation are promptly followed up to ensure clarification or resolution and are reported to relevant authorities where necessary
  • 2.6. Audit and security arrangements are checked to ensure they provide adequate protection for client confidentiality and client funds held in trust
3. Manage and control trust accounts
  • 3.1. Disbursements to and from trust accounts are authorised and managed within agreed practice protocols and legislative requirements
  • 3.2. Appropriate arrangements are made with third parties and other professionals to ensure that practice trust accounts comply with legislative requirements
  • 3.3. Practice trust administration policies and procedures are disseminated or made readily available to relevant staff in line with practice and legislative requirements
  • 3.4. Ongoing training of relevant practice staff is provided to ensure efficient operation of trust accounts and financial and IT systems, and compliance with practice and legislative requirements
  • 3.5. Procedures for monitoring records and ensuring the security of trust account records are developed and implemented
4. Monitor and review trust accounts
  • 4.1. Documentation and other reporting requirements are regularly reviewed for compliance with legislative requirements
  • 4.2. Trust account entries and transactions are regularly checked and monitored to ensure compliance with practice and legislative requirements
  • 4.3. Trust account transactions are monitored to ensure appropriate authorisation is obtained prior to any disbursements
5. Authorise and verify trust accounts
  • 5.1. Periodic reconciliation is verified in compliance with legislative requirements
  • 5.2. Periodic financial reports are prepared and discussed with clients to ensure their continued accuracy
  • 5.3. Records are maintained to enable them to be conveniently and properly audited
  • 5.4. Legislative audit requirements are met
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.
Trust account requirements include but are not limited to:
audit and accounting requirements
client confidentiality
client instructions, expectations and needs
compliance of financial and IT systems and technology with relevant legislation and regulations
disclosure and reporting requirements
financial management principles and practices
relevant regulations and legislation
taxation and financial fees and charges.
Electronic or manual trust accounting system performance must take into account, the following factors:
administrative systems
Australian Accounting Standards and codes of practice
bookkeeping
consumer credit codes
disclosure and reporting requirements
electronic funds management including transfer/deposit/verification
ethical requirements
IT legislation, regulations and codes of practice
legislative and regulatory requirements
office routines
security requirements
trust account procedures.
Trust transactions may include:
a range of dealings in real estate, business or personal property
electronic, computerised or manual entries or processes.
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:
comply with statutory and legislative requirements for the operation of trust accounts
apply financial management and accounting principles and knowledge to trust accounts
apply detailed knowledge of the policies and procedures of the practice
demonstrate commitment to client service and maintenance of client security, privacy and confidentiality
undertake high level critical analysis, monitoring and financial performance evaluation
demonstrate high standards of professional and ethical behaviour in all actions.

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 workplace or a closely simulated work environment
access to and use of a range of common office equipment, technology, software and consumables
suitable assessment records showing the establishment and management of a practice trust account.

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 which may include formal examinations
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment
Replaces
State Code National Code Title Type
C9650 FNSCONV503B Establish, manage and administer trust accounts Unit of competency
Replaced By
State Code National Code Title Type
AUL19 BSBCNV506 Establish and manage a trust account Unit of competency