Unit of competency Outline
Date retreived
22/07/2026 9:44 PM AWST
22/07/2026 9:44 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.
Monitor and process collateral
Monitor and process collateral
Unit of competency
National Code
FNSFMK518
FNSFMK518
State Code
OBR63
OBR63
TGA Status
Current
Current
DTWD Status
Approved
Approved
State Implementation and Classification
Approved Date
02/10/2020
Field of Education
081101 - Banking And Finance
Original Release Date
02/10/2020
Nominal Hours
60
Description
This unit describes the skills and knowledge required to monitor collateral activity, process collateral and manage disputes.The unit applies to individuals who use highly specialised knowledge, analytical skills and systematic approaches for problem solving and making judgements about financial decisions in complex situations.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Assess collateral support documentation
- 1.1 Assess credit support annexe (CSA) against operational capabilities, and regulatory requirements relating to processing collateral
- 1.2 Identify required changes to CSA established by organisation with specified counterparty
- 1.3 Communicate required changes to person/s as set out in organisational procedures and processes
2. Monitor collateral activity
- 2.1 Monitor collateral systems for outstanding trades with counterparties
- 2.2 Undertake daily market value of trades using source of pricing specified in CSA
- 2.3 Comply with internal control process to ensure marking to market of trades is consistent with previous day’s value
- 2.4 Investigate and resolve or escalate discrepancies in line with organisational processes
- 2.5 Seek agreement from counterparty to proceed with collateral obligation
- 2.6 Conduct checks before initiating settlement of collateral in line with organisational controls
3. Manage collateral disputes
- 3.1 Identify differences in valuations to those provided by counterparty
- 3.2 Investigate differences by reconciling trade details against records of trades provided by counterparty
- 3.3 Compare internal calculation of mark to market of trades to those provided by counterparty and agree on use of pricing data
- 3.4 Investigate difference by checking calculation methodology used by both parties
- 3.5 Apply default calculation methodology if no resolution reached among counterparties
- 3.6 Document and escalate unresolved disputes to appropriate personnel as required
4. Identify collateral defaults
- 4.1 Investigate and escalate non-settlement or fails of agreed collateral to appropriate risk stream in line with service level agreements
- 4.2 Escalate collateral default to person/s as set out in organisational procedures and standards
No information
No information
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR19 | FNSFMK508 | Monitor and process collateral | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| BFF3 | FNS51020 | Diploma of Financial Markets | Qualification |
| BHU2 | FNS51022 | Diploma of Financial Markets | Qualification |