Unit of competency Outline

Date retreived
22/07/2026 1:34 PM AWST

Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.

Establish and maintain appropriate securitisation

Establish and maintain appropriate securitisation

Unit of competency
National Code
FNSCRD402A
State Code
D4084
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
29/07/2014
Field of Education
081105 - Investment And Securities
Original Release Date
29/07/2014
Nominal Hours
20
Description
This unit describes the performance outcomes, skills and knowledge required to determine and implement appropriate security options in relation to individual customers to protect the organisation against loss and exposure.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. Identify available securitisation options
  • 1.1. Any difference between legislative and regulatory securities is understood and applied as appropriate to both real and personal property
  • 1.2. Legislative and regulatory requirements to the establishment of a security interest are adhered to.
2. Assess if security is required and identify appropriateness of securities available
  • 2.1. The customer's risk profile is determined
  • 2.2. Risk analysis is undertaken in accordance with organisation guidelines for securitisation to determine requirement for security
  • 2.3. Where security is required the range of securities available is identified and determination is made as to which are appropriate to the type of credit facility
  • 2.4. Valuations may be conducted and assets analysed where applicable to confirm value of security
3. Apply appropriate security
  • 3.1. Reasons for the necessity of security are fully and clearly detailed to customers, verbally or in writing, using clear communication and reliable assistance to ensure good customer relations
  • 3.2. Negotiation may occur with the customer in the determining of the security arrangement within defined parameters and organisation guidelines and obligations
  • 3.3. Security interest is registered in accordance with legislative requirements
4. Monitor and review effectiveness of security arrangement
  • 4.1. Monitor customer's account to confirm appropriateness of security arrangement
  • 4.2. Where necessary amend the security arrangement documentation to reflect changes in customer relationship or circumstances
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.
Guidelines for securitisation may include:
assessment of credit amount
high risk loans
reason for
extending credit finance registration on Personal Properties Security Register (PPSR)
Range of securities may include:
bills of sale
chattel mortgages
commercial securities
fixed term deposits
liens
life insurance policies
other property
real estate mortgages
registration on the Personal Property Security Register (PPRS).
Clear communication and reliable assistance may include:
verbal
written.
Organisation guidelines and obligations may cover:
accepting and rejecting credit applications
gathering information and its evaluation
legal obligations and framework
liaison, information dissemination and marketing to internal and external parties
maintenance invoices and other appropriate files
maintenance of customer account
minimising risk
overall organisation goals and objectives
referral to appropriate departments and/or individuals
reviewing and adjusting credit limits for established customers
safe storage of security documentation
setting credit limits or credit lines for applications
trading terms and credit limits.
Credit security arrangement documentation may include:
bank guarantee
documentation relating to registration on the PPSR
secured or unsecured third party guarantee
trade credit insurance.
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 and implement an organisation's credit policy
detail credit security options to customers
analyse customer security to establish the most appropriate solutions that minimise risk to the organisation
clarify information for all credit accounts
determine, with customer input, a satisfactory outcome for security that suits the customer's circumstances
use reliable and honest techniques to assist customers to select appropriate security options.

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 organisational policy and procedures information for loan security and risk minimisation.

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
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
C9658 FNSCRDT403B Determine and establish appropriate securities to minimise risk Unit of competency
Replaced By
State Code National Code Title Type
AUQ63 FNSCRD402 Establish and maintain appropriate security Unit of competency