Unit of competency Outline

Date retreived
23/07/2026 5:41 AM AWST

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Apply principles of trust accounting

Apply principles of trust accounting

Unit of competency
National Code
BSBCNV614
State Code
OCG34
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
19/10/2020
View on TGA
State Implementation and Classification
Approved Date
16/03/2021
Field of Education
081105 - Investment And Securities
Original Release Date
16/03/2021
Nominal Hours
40
Description
This unit describes the skills and knowledge required to establish, manage and administer trusts or controlled money accounts in a practice. It encompasses reviewing for compliance with trust account requirements, establishing and managing trust accounts, maintaining trust transaction records, and monitoring and reviewing trust accounts.The unit applies to individuals who use specialised knowledge and systematic approaches to analyse and manage financial information against specified criteria and compliance requirements.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the BSB Companion Volume Implementation Guide or the relevant regulator for specific guidance on requirements.
Notes
Elements and Performance Criteria
1. Evaluate trust account compliance
  • 1.1 Identify, record and continuously update practice trust account requirements in line with relevant legislation and regulations
  • 1.2 Develop policies and procedures for trust account-keeping according to trust account requirements, key principles of accounting and financial management, and legislative requirements
  • 1.3 Identify and apply criteria for evaluating electronic or manual trust accounting systems and confirm compliance with trust account requirements
2. Establish and manage trust accounts
  • 2.1 Identify and access source documents for trust transactions according to legislative requirements and practice policies and procedures
  • 2.2 Produce documentation of trust records and transactions and confirm documentation is an accurate record of practice transactions on behalf of clients
  • 2.3 Confirm transactions are supported by required authorisation and documentation and according to legislative requirements and practice policies and procedures
  • 2.4 Record entries and transactions according to relevant trust account requirements, and provide to relevant stakeholder, where required
  • 2.5 Identify discrepancies in entries or documentation and confirm clarification or resolution
  • 2.6 Report discrepancies to relevant authorities, where required
  • 2.7 Check audit and security arrangements and confirm they provide adequate protection for client confidentiality and client funds held in trust
3. Manage and control trust accounts
  • 3.1 Authorise and manage disbursements between trust and office accounts according to legislative requirements and practice policies and procedures
  • 3.2 Make required arrangements with third parties and other professionals and confirm that practice trust accounts comply with legislative requirements
  • 3.3 Distribute practice trust administration policies and procedures to relevant staff according to practice and legislative requirements
  • 3.4 Facilitate continuous training for relevant practice staff according to legislative requirements and practice policies and procedures
  • 3.5 Develop and implement procedures for monitoring records and ensuring the security of trust account records
4. Monitor and review trust accounts
  • 4.1 Review documentation and other reporting requirements for compliance with legislative requirements
  • 4.2 Check and monitor trust account entries and transactions and confirm compliance with legislative requirements and practice policies and procedures
  • 4.3 Monitor trust account transactions and confirm authorisation is obtained prior to any disbursements
5. Authorise and verify trust accounts
  • 5.1 Verify periodic reconciliation in compliance with legislative requirements
  • 5.2 Prepare and discuss periodic financial reports with clients and identify issues, where required
  • 5.3 Maintain records for convenience and auditing
  • 5.4 Meet legislative audit requirements
No information
No information
Replaces
State Code National Code Title Type
AUL19 BSBCNV506 Establish and manage a trust account Unit of competency
State Code National Code Title Type
BFT8 BSB60220 Advanced Diploma of Conveyancing Qualification
BHU0 FNS51522 Diploma of Credit Management Qualification
BHT7 FNS40122 Certificate IV in Credit Management Qualification