Unit of competency Outline

Date retreived
23/07/2026 10:04 AM AWST

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Hedge financial products

Hedge financial products

Unit of competency
National Code
FNSFMK602
State Code
AUR17
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
080101 - Accounting
Original Release Date
16/09/2015
Nominal Hours
70
Description
This unit describes the skills and knowledge required to hedge financial transactions, enter hedge transactions into organisational systems, and revalue and adjust financial positions when trading financial products within financial markets.It applies to individuals who operate within limits of responsibility and use specialised knowledge, analytical skills and systematic approaches to analyse, review and make judgements about complex financial information to meet requirements.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. Assess hedge financial transaction
  • 1.1 Assess risk tolerance and appetite, and review current financial position to determine if hedging is required using an additional financial product
  • 1.2 Analyse hedging instrument options based on limits, organisational product approvals and current exposure assessment
2. Complete hedge transaction
  • 2.1 Undertake hedge transaction with counterparties in accordance with organisational guidelines, credit and other desk limits
  • 2.2 Collect hedge transactional details, complete relevant documentation and enter hedge transaction into the organisation’s dealing system
  • 2.3 Report details of transaction to authorised trade repository where required by regulation
3. Assess adjusted financial position
  • 3.1 Assess new post-transaction position in line with profit and loss and risk reports, and new market data available
  • 3.2 Adjust hedge position, based on analysis of new data, if risk remains outside scope of organisational tolerance or market moves
  • 3.3 Collect additional transactional details, complete relevant documentation and enter new transaction into organisation’s dealing systems
No information
No information
Replaces
State Code National Code Title Type
D4135 FNSFMK602A Hedge financial products Unit of competency
Replaced By
State Code National Code Title Type
OBR77 FNSFMK612 Manage trading exposures Unit of competency