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.
Adviser may include:
all natural persons who provide financial product advice to retail clients
any representative of a licensee
employee or owner.
Client needs, objectives and financial situation may include:
business needs
debt position
expectations of access to product
expectations of income from product
expectations of lifecycle and length of product
family income
security.
Risk profile may include:
access restrictions on product
borrowing risk and gearing
economic
market and sector risks:
economic cycle
fixed interest
property
stock market
risk factors and return expectations
specific product risk
volatility of income and capital.
Information gathered from the client may include:
details of liabilities and potential liabilities of the client
details of client needs and objectives for income, security, liquidity, and the time period the client is planning for
disclaimers
disclosures
individual investment preferences and aversion or tolerance to risk
other client details such as:
employment security
likely events and their impact on the client
age
other products they have
product application forms
written advice.
Client product expectations may include:
personal involvement:
active
passive
risk profile:
conservative
speculator.
moderate
their beliefs about performance
expectations of fluctuations in income or capital
being a long-term or short-term investor
need for security.

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 comply with industry regulations and codes of practice including, for insurance products, the required approval or authority to accept the transfer of risk
analyse the characteristics of financial products and services, financial markets and the roles of other specialist providers and licensees
assess the impacts of taxation on client's financial requirements for specific products considered.

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 financial services product information.

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 or role plays
verbal or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations or scenarios
accessing and validating third party reports.

Guidance information for assessment