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Title / Apply advice process within predetermined guidelines in family/personal budgeting
Level / 4 / Credits / 10
Purpose / This unit standard is for people working or intending to work in a family/personal budgeting advice context who need to apply a professional advice process within predetermined guidelineswhen interacting with clients.
People credited with this unit standard are able to:
–establish relationships with clients;
–identify client objectives, needs, and financial situation;
–analyse client objectives, needs, and financial situation, and develop options to meet client requirements;
–present appropriate options to the client in a culturally appropriate way that the client understands;
–agree and finalise the selected option(s) with the client and coordinate implementation of the selected option(s); and
–agree on and provide ongoing monitoring for the client.
Classification / Financial Services > Financial Advice
Available grade / Achieved
Explanatory notes
1This unit standard has been developed for learning and assessment on-job or off-job in a pre-employment context using a realistic simulation. Where this unit standard is completed in a pre-employment pathway or non-client facing role, and evidence is provided by case study or simulation, an explanation of how or why particular activities or steps are performed can be used to support an assessor’s judgement of competency.
2References
Consumer Guarantees Act 1993;
Credit Contracts and Consumer Finance Act 2003;
Fair Trading Act 1986;
Financial Transactions Reporting Act 1996;
Income Tax Act 2007;
KiwiSaver Act 2006;
Privacy Act 1993;
Securities Markets Act 1988;
Trustee Act 1956;
Trustee Amendment Act 1988;
industry codes of practice;
and all subsequent amendments and replacements.
3Definition
Predetermined guidelines – guidelines developed by product providers and/or organisations incorporating recommended usage and practice.
4Range
aEvidence relating to a minimum of two clients is required to cover a representative range of needs and options in the family/personal budgeting advice sector as appropriate to the candidate’s area of work or proposed work.
bEmployed candidates are expected to be working within predetermined guidelines and this needs to be considered in the development of options, which may not be fully flexible.
cAll activities must comply with any policies, procedures, and requirements of the organisations involved; the standards of relevant professional bodies including codes of ethics; and any relevant legislative and/or regulatory requirements.
Outcomes and Evidence Requirements
Outcome 1
Establish relationships with clients.
Evidence Requirements
1.1Use a range of communication and interpersonal skills to establish a relationship with the client.
Rangeincludes but is not limited to – questioning and listening, rapport building, establishing the client’s level of financial literacy, tailoring communication to client’s level of financial literacy.
1.2Explain the terms of engagement between the client and the budgeting service in a way the client understands.
Rangeterms of engagement may include but are not limited to – voluntary participation, cost, confidentiality, expectations of client disclosure, expectations of service, client need to control choices, non-judgemental nature of relationship.
1.3Explain complaints handling procedures and the circumstances in which those procedures should be engaged in a way the client understands.
Outcome 2
Identify client objectives, needs, and financial situation.
Evidence Requirements
2.1Identify and document relevant clientpersonal and financial details.
Rangeinformation gathered from the client may include but is not limited to – household make up, income sources and amounts, contractual obligations including contracts for services and credit contracts, other liabilities, assets, banking information, cultural and family obligations, tax, client life stage.
2.2Identify and document clientneeds and expectations, objectives, and short, medium, and long-term goals as relevant to the situation.
Rangemay include but is not limited to – debt management, access to essential items and services, savings plan, accessing emergency funds, financial management ability, security for family.
Outcome 3
Analyse client objectives, needs, and financial situation, and develop options to meet client requirements.
Evidence Requirements
3.1Document assets and liabilities,and produce a budget worksheet to analyse client financial situation.
3.2Check gathered information for accuracy with available documentation and obtain the client’s confirmation of accuracy.
3.3Analyse client’s financial position in relation to their objectives and needs.
3.4Analyse the need for specialist advice and refer the client to specialist services where appropriate.
3.5Conduct relevant research and analysis to determine possible options for the client in accordance withpredetermined guidelines.
3.6Determine appropriate options to provide for identified objectives and needs from analysis of gathered information.
Rangeoptions may include but are not limited to – financial crisis management, creditor negotiation, development of balanced budget and cash flow forecast, financial education, achieving financial self-management, debt management, analysis of household spending patterns and suggested changes, legislative advocacy.
3.7Draft appropriate options for presentation to the client in a clear and concise manner that the client understands.
Outcome 4
Present appropriate options to the client in a culturally appropriate way that the client understands.
Evidence Requirements
4.1Build credibility with the client by demonstrating knowledge of different mechanisms and systems available in a budgeting advice context.
4.2Explain and discuss the options with the client in a clear and unambiguous way, and reinforce and confirm relevant details with the client.
4.3Disclose impacts and possible risks of the options in a clear and concise manner that the client understands.
Outcome 5
Agree and finalise the selected option(s) with the client and coordinate implementation of the selectedoption(s).
Evidence Requirements
5.1Discuss and address concerns and/or issues the client has regarding the proposed options in a way the client understands.
Rangeconcerns and/or issues may include – affordability, fluctuations in income, changes of circumstances, need for ongoing support.
5.2Gain and document theformal agreement of the client to the selected option(s) and confirm that they fully understand all elements of theselected option(s).
5.3Provide the client with written supporting documentation of the selected option(s) and guide them through the key aspects of the documentation. Documents may be provided in eitherelectronic orhard copy form.
5.4Clearly explain timeframes and responsibilities for execution and processing of the selected option(s) and gain confirmation of understanding from the client.
5.5Monitor implementation to ensure all required actions are completed as agreed.
Outcome 6
Agree on and provide ongoing monitoring for the client.
Evidence Requirements
6.1Agree with the client the type and form of ongoing monitoring, including reporting on performance and review of effectiveness of implemented option(s).
6.2Provide ongoing monitoring as agreed with client.
Planned review date / 31 December 2017Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 18 June 2014 / N/A
Consent and Moderation Requirements (CMR) reference / 0003
This CMR can be accessed at
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies to this standard are outlined in the Consent and Moderation Requirements (CMR). The CMR also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Comments on this unit standard
Please contact The Skills you wish to suggest changes to the content of this unit standard.
The Skills OrganisationSSB Code 100401 / New Zealand Qualifications Authority 2018