FNSASIC301B: Establish client relationship and analyse needs
Description
This unit has been specifically designed to, when combined with FNSASIC302B, satisfy the
skills requirements of current Australian Securities and Investment Commission (ASIC)
regulation (Financial Services Reform Act) at Tier 2 level. The unit will be changed in
accordance with relevant changes to the legislation. It specifically relates to those staff
advising on financial services products as identified by ASIC as being at Tier 2 level.
Employability Skills
This unit contains employability skills.
Application Of Unit
This unit requires the application of skills and knowledge required to provide advice in
financial services products at Tier 2 level in accordance with ASIC regulations.
This unit requires the application of interpersonal skills, needs analysis, and customer service
skills to the provision of advice to clients.
Unit Sector
Industry Capability- ASIC Advisory Units
Performance criteria
Element Performance criteria
1. A range of communication and interpersonal skills are
1 used to establish the knowledge level of client
1. Enquiries in relation to products and services are
2 responded to by explaining the range of products and
Establish services available and their relevant fee and charging
1. relationship with methodology
client 1. Client is informed of the role of the adviser and the
3 licensee/principal responsible for the adviser's conduct
1. Familiarity with the procedures for complaints handling
4 and the circumstances in which they should be engaged
is demonstrated
2. A range of communication and interpersonal skills are
Identify clients 1 used to gather clients' personal, financial and business
objectives, needs details
2.
and financial 2. Clients needs are identified by encouraging expression of
situation 2 their objectives and goals (short, medium and long term
goals as relevant to the product)
2.
Product risk profile of the client is identified
3
2. Clients expectations of cash flow and relevant taxation
4 obligations are obtained
3. An assessment of client needs is undertaken, utilising all
1 information gathered and taking into account clients
product expectations and specific needs
3. Clients are consulted throughout the analysis for further
2 clarification where necessary
Analyse client
objective, needs, 3. The need for specialist advice is analysed and/or client is
3. financial 3 referred to appropriate adviser for higher level/specialist
situation and risk advice if required
profile
3.
Product risk profile of the client is assessed and agreed
4
3. Understanding of the ASIC identified generic and
5 specialist knowledge relevant to the products being
offered is demonstrated
Skills and Knowledge
Required skills:
Skills requirements include:
• ability to perform completed needs analysis
• analytical skills
• ability to use databases and computerised equipment
• presentation skills
• customer negotiation skills
• ability to analyse information and products to ensure appropriateness to client needs,
currency and accuracy
• effective interpersonal and communication skills
Required knowledge:
Knowledge requirements include:
Generic knowledge requirements
• generic knowledge about the economic environment, the characteristics and impact of
economic and business cycles, including interest rates, exchange rates, inflation, and
government monetary and fiscal policies
• generic knowledge about the operation of financial markets, the roles played by
intermediaries and issuers, structure and inter-relationships within the financial
markets, and inter-relationship between industry sectors
• generic knowledge about financial products, including the concept of a financial
product, general definition, specific inclusions and exclusions, types of financial
investment products, types of financial risk products
• generic knowledge about the taxation issues in relation to the products and markets in
which they operate
• generic knowledge about advisory functions, the role of the representative/adviser,
participants in the advisory services market, range of services provided, profile and
financial information of the client, appropriateness of a risk assessment
• generic knowledge about the legal environment and disclosure and compliance, the
role of the representative/adviser, relevant legal principles (eg Corporations Act,
Financial Services Reform Act (FSRA), Trade Practices Act etc.), the relationship
between ethics and regulatory requirements (eg good faith, utmost good faith, full
disclosure of remuneration/fees and any other conflicts of interest which may
influence the adviser's recommendation)
• knowledge of relevant industry codes of practice and conduct
• knowledge of complaints resolution procedures (internal and external)
• knowledge of regulators guidelines including the requirements of ASIC's policy
statement 146
Specialist knowledge requirements
• specialist knowledge of the specific industry or product in which they are operating.
For general insurance products this includes:
• types of general insurance products/policies
• standard cover (and deviations)
• policy wordings
• taxes and charges
• insurance claims
• premium rating/risk selection
• reporting
• product development
• underwriting
• for deposit products and non-cash payment facilities this includes:
• types of products/facilities
• product/facility characteristics
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.
• any representative of a licensee
• employee or owner
Adviser may include:
• all natural persons who provide financial product advice
to retail clients
• debt position
• security
• expectations of income from this product
Client's needs, objectives
• family income
and financial situation
• business needs
may include:
• expectations of access to product
• expectations of lifecycle and length of product
• risk factors and return expectations
• volatility of income and capital
• market and sector risks (economic cycle, fixed interest,
property, stock market)
Risk profile might
• access restrictions on product
include:
• economic
• specific product risk
• borrowing risk/gearing
• details of the customers needs and objectives for income,
security, liquidity, and the time period the customer is
planning for
• details of liabilities and potential liabilities of the
customer
• individual investment preferences and aversion or
tolerance to risk
Information gathered
• other customer details such as employment security,
from the client might
likely events and their impact on the customer, age and
include:
other products they have
• computer and manual applications
• written advice
• disclaimers
• disclosures
• product application forms
• beliefs about performance
• security
• conservative
• risk
• fluctuations in income and/or capital
Expectations might
• moderate
include:
• speculator
• passive
• active
• long term or short term investor