Unit of competency Outline

Date retreived
22/07/2026 6:24 PM AWST

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Monitor and process collateral

Monitor and process collateral

Unit of competency
National Code
FNSFMK508
State Code
AUR19
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
081101 - Banking And Finance
Original Release Date
16/09/2015
Nominal Hours
60
Description
This unit describes the skills and knowledge required to monitor collateral activity, process agreements and manage disputes as required.It 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.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Notes
Elements and Performance Criteria
1. Process collateral support documentation
  • 1.1 Source collateral support annexe (CSA) relevant for specified clients
  • 1.2 Interpret and analyse implications of CSA for managing collateral with counterparty
  • 1.3 Identify requirements of CSA and its impact on how collateral is measured and managed
  • 1.4 Execute collateral requirements identified in line with organisational policy
2. Monitor collateral activity
  • 2.1 Use net market to market value of trades covered by credit support documents to calculate collateral margining activity
  • 2.2 Initiate margin calls when terms of CSA dictate
  • 2.3 Monitor and update daily market values for non-cash collateral debt, checking that any cuts in valuations are applied in line with agreed framework
  • 2.4 Identify and update derivative credit exposures on long-term and short-term deals on organisational credit management system
  • 2.5 Monitor threshold amounts to determine options to use break clause if necessary
  • 2.6 Negotiate and replace collateral deals when break clause has been invoked
  • 2.7 Process call and return amounts promptly and accurately
  • 2.8 Observe segregation of roles according to organisational requirements and industry codes of practice
3. Manage collateral disputes or defaults
  • 3.1 Identify differences in valuations and escalate to correct stream
  • 3.2 Check, value and reconcile portfolios on regular basis to ensure collateral management data is current and valid
  • 3.3 Deal with disputes according to organisational policy and procedures
  • 3.4 Document and escalate unresolved disputes or defaults to appropriate personnel as required
  • 3.5 Investigate and escalate non-settlement or fails of agreed collateral to the appropriate risk stream in line with agreed Service Level Agreements
No information
No information
Replaces
State Code National Code Title Type
D4130 FNSFMK508A Monitor and process collateral Unit of competency
Replaced By
State Code National Code Title Type
OBR63 FNSFMK518 Monitor and process collateral Unit of competency
State Code National Code Title Type
AWC2 FNS51015 Diploma of Financial Markets Qualification