Elements and Performance Criteria

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.


Australian Securities and Investment Commission (ASIC) Act

ASIC policy and guidelines

Taxation Acts

Consumer Credit Code

Privacy Act

Corporations Act

Contracts Law

Trade Practices Act

Trust Law

Consumer Affairs Act

industry codes of practice

State and Territory legislation

Social Security regulations

Life Act

Insurance Act


investigation and assessment of costs

safety

integration of strategies and solutions

return on investment

volatility of expected income and/or capital growth

liquidity

flexibility

tax effectiveness and investment spread of relevant products available to the adviser


insurance products

equities

derivatives

futures

managed investments

superannuation

cash deposits

direct investments


risk factors and return expectations of the client

institutional risk

volatility of income and capital

market and sector risks (economic cycle, fixed interest, property, stock market)

economic

specific product risk

borrowing risk/gearing

asset allocation and investment spread

lifestyle choices

systems and other similar constraints may need to be considered

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

To achieve competency in this unit, a person must be able to demonstrate:

knowledge of relevant legislative requirements
knowledge of relevant industry codes of practice
ability to confirm plan objectives and scope
ability to test strategic assumptions
ability to develop financial plan to set strategy
ability to review and settle draft strategy and options according to organisational guidelines
ability to develop preliminary financial plan
ability to develop financial plans designed to meet set parameters and guidelines
ability to identify and describe key assumptions on which the plan is based
ability to test and/or make appropriate checks on the proposed plan for its integrity and compliance
knowledge of the financial planning industry, industry regulations and codes of practice
knowledge of financial products, financial markets and investment characteristics
knowledge of roles of other associated financial advisers
impact of taxation, social security, economic and other government policies on client investment and financial requirements

Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.

Delivery/assessment relationship to other units:
This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.
Evidence is most relevant when provided through an integrated activity, which combines the elements of competency for the unit, or a cluster of units of competency.

Method of assessment:
For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.
Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Resources required for assessment:
Assessment of this unit of competence requires access to suitable resources to demonstrate competence.
Assessment instruments, including personal planner and assessment record book.
Access to registered provider of assessment services.