Unit of competency Outline

Date retreived
22/07/2026 7:58 AM AWST

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Determine client requirements and expectations

Determine client requirements and expectations

Unit of competency
National Code
FNSCUS505A
State Code
D4099
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
31/07/2014
Field of Education
080501 - Sales
Original Release Date
31/07/2014
Nominal Hours
60
Description
This unit describes the performance outcomes, skills and knowledge required to establish a client's financial requirements and expectations in regard to financial investment products and includes quotations, claims and requests for service or amendments.It does not cover the application of the specific skills and knowledge required to recommend and provide advice on specific financial products requiring Australian Securities and Investments Commission (ASIC) licensing.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Develop an awareness of the client's situation
  • 1.1. Relevant facts and information are obtained courteously and professionally to determine client's situation prior to defining their expectations, requirements and objectives
  • 1.2. Clients are encouraged to disclose relevant information to determine their personal and financial situation and special needs
  • 1.3. Summary analysis of client's financial position is developed and the client contact categorised based on extent of client disclosure
  • 1.4. Further advice is not offered or provided if client is categorised as requiring execution or settlement-only action
2. Obtain relevant knowledge of client's financial position and risk profile
  • 2.1. Where relevant, client financial position is ascertained
  • 2.2. Risk and fraud indicators are identified accurately and consistently
3. Determine client expectations and requirements with respect to financial markets advice
  • 3.1. Client is encouraged to express and clarify their requirements and expectations and their concerns, if any are identified and responded to promptly and appropriately
  • 3.2. Client's investment needs and preferences with respect to financial product selection or portfolio are determined
  • 3.3. Specialist advice is sought where necessary or client is referred to appropriate personnel or organisation where required services are not available or cannot be provided
  • 3.4. All information and facts provided by client are analysed and appropriate risk or reward and asset allocation strategies are determined in accordance with client requirements, organisation policies and guidelines and with relevant legislation or industry codes of practice
4. Prepare and update necessary documentation where required
  • 4.1. All relevant client facts, financial and personal histories and completed disclosure documents are completed and filed in accordance with organisation policy and guidelines and relevant legislation and regulatory requirements
  • 4.2. Client records are created or updated where necessary and client documentation, information and histories filed in a format and location readily accessible to other advisers
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.
Client special needs may include:
age groups
people with a disability
the needs of people from different cultural backgrounds.
Client contact categorisation may include:
clients seeking no advice
execution or settlement-only transactions
financial planning
general information
portfolio advice
stock specific advice.
Client financial position may include:
current listed stock held
managed funds held
types of derivatives held
types of securities held.
Relevant information may include:
age
current level of liquidity
current portfolio including:
family holdings
any Capital Gains Tax (CGT) related details such as stocks acquired prior to 20/09/1985
employer details
experience with investment in stock markets
extent to which the client is geared
family structure and dependants
home ownership
insurance and superannuation arrangements
investable funds
level of debt
marginal tax rates
occupation
past, present and future employment prospects
personal income
previous financial history including:
bankruptcy
refusal of credit.
Relevant legislation and codes of practice may include:
Consumer Affairs Act
Consumer Credit Code
contract law
Corporations Act
Financial Services Reform Act (FSRA)
industry codes of practice
National Guarantee Fund rules
Privacy Act
relevant financial association's business rules and codes of practice
Taxation Act
Trade Practices Act
trust law.
Organisation policy and guidelines may include:
advertising and marketing
administrative procedures
complaints and dispute resolution procedures
IT and administrative systems
policies and procedures in relation to client service
product or service development.
Client documentation may include:
advice
agreements
Australian Securities Exchange (ASX) explanatory booklets
brochures
client agreement forms
completed disclosure documents
contracts or policy statements
financial services guides
in-house publications
legal, government, professional and other documents
meeting notes
memos
official, general and other correspondence
product disclosure statements
program recommendations
prospectuses
quotations
reasons for adopting or incorporating certain information in preference to other information
receipts
records of telephone conversations
reference to all evidence and information considered
reports:
research
statistical
ad hoc
transaction
other
statements of advice.
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:
develop an awareness of the client's financial situation and obtain accurate knowledge of the client's risk profile
determine client expectations and requirements with respect to stock or portfolio advice
empathise and build rapport with clients by offering thorough and ongoing assistance with all enquiries and requests for service
consider and adapt to any special needs of clients, including cultural, language, race, religion, ethnic origin, socioeconomic status and demographic needs.

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
access to an client contact and information system and data.

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
verbal or written questioning on underpinning knowledge and skills
setting and reviewing business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment
Replaced By
State Code National Code Title Type
AUQ87 FNSCUS505 Determine client requirements and expectations Unit of competency