Fnsasic302adevelop, Present and Negotiate Client Solutions

Apply Product Knowledge

This collection of learning resources covers the following competencies:

FNSASIC302A / Develop, present and negotiate client solutions
FNSICPRO401A / Develop and maintain in-depth knowledge of products and services used by your organisation or sector
FNSICPRO402A / Match financial products to customer needs
FNSICSAM401A / Sell financial products and services

FNSASIC302ADevelop, present and negotiate client solutions

Unit descriptor / This unit has been designed to, when combined with FNSASIC301A, 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.
Application of the 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 research, analysis and interpersonal, including presentation, skills to the provision of financial solutions to clients.
Relationship to other units / This unit replaces FNBASC02A.
ELEMENT / PERFORMANCE CRITERIA
Elements define the essential outcomes of a unit of competency. / Performance Criteria describe the required performance needed to demonstrate achievement of the Element. Bold, italicisedterms are elaborated in the Range Statement. Assessment of performance is to be consistent with the Evidence Guide.
1. / Develop appropriate strategies and solutions / 1.1An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of clients’ needs
1.2Relevant research, analysis and product modelling is conducted
1.3Appropriate solution (plan, policy or transaction) is drafted for presentation to client
1.4Understanding of the ASIC identified generic and specialist knowledge relevant to the products being offered is demonstrated
2. / Present appropriate strategies and solutions to the client / 2.1Product knowledge appropriate for the service or product offered is demonstrated when presenting the product
2.2The proposed transaction is explained and discussed with the client in a clear and unambiguous way
2.3Relevant details, terms and conditions of product/service are reinforced to client
2.4Impacts and possible risks of the solution are disclosed in a clear and concise manner to the client
2.5Client is provided with written supporting documentation and guided through the key aspects of the documentation
3. / Negotiate financial plan/policy/transaction with client / 3.1Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified
3.2Confirmation is sought from client that they understand the proposed plan/policy/transaction
4. / Coordinate implementation of agreed plan/policy/
transaction / 4.1The clients’ formal agreement to the proposed plan/policy/transaction is gained
4.2Associated fee and cost structures are clearly explained and confirmation of understanding gained from the client
4.3Timeframes for execution and processing are clearly explained and confirmation of understanding gained from the client
5. / Complete and maintain necessary documentation / 5.1Proposal and all other statutory and transactional documents are completed and signed off by the client
5.2Copies of appropriate documentation and the signed agreement are exchanged
6. / Provide ongoing service where requested by client / 6.1Type and form of ongoing service; including reporting on performance and review of plan/policy/transaction is agreed with the client
6.2Fees and costs for ongoing and specifically defined service are clearly explained and confirmation of understanding gained from the client
6.3Ongoing service is provided as required
REQUIRED KNOWLEDGE & SKILLS
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 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
Skills requirements include:

ability to perform completed needs analysis
analytical skills
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

Range STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Adviser may include: / Adviser may include:

any representative of a licensee
employee or owner
all natural persons who provide financial product advice to retail clients

Identified needs and outcomes may include: / Identified needs and outcomes may include:

debt position
security
expectations of income from this product
family income
business needs
expectations of access to product
expectations of lifecycle and length of product

Risk profile might include: / Risk profile might include:

risk factors and return expectations
volatility of income and capital
market and sector risks (economic cycle, fixed interest, property, stock market)
access restrictions on product
economic
specific product risk
borrowing risk/gearing

Information gathered from the client might include: / Information gathered from the client might include:

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
other customer details such as employment security, likely events and their impact on the customer, age and other products they have

Documentation might include: / Documentation might include:

computer and manual applications
written advice
disclaimers
disclosures
product application forms

Concerns and issues might include: / Concerns and issues might include:

beliefs about performance
security
conservative
risk
fluctuations in income and/or capital
moderate
speculator
passive
active
long term or short term investor

EVIDENCE GUIDE
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range of Variables applicable to the workplace.
Overview of assessment requirements
To achieve competency in this unit, a person must be able to demonstrate:

knowledge of industry regulations and codes of practice, financial products and services, financial markets and characteristics, roles of other specialist providers and licensees, as well as the impacts of taxation on the clients financial requirements for the specific products offered
for insurance products, competence in this unit is subject to the staff members’ approval/authority to accept the transfer of risk

Critical aspects of evidence
Evidence required for demonstration of consistent performance: /

Competency is demonstrated by performance of all stated criteria, including the Range of Variables applicable to the workplace environment.
Assessment should cover a representative range of clients (risk profile and needs) and products.

Delivery/assessment relationship to other units: /

This unit could be assessed in conjunction with:

-FNSASIC301A Establish client relationship and analyse needs.
Assessment Requirements
Method of assessment: /

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment: /

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.
Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.
Registered Training Organisations (RTOs) need to be mindful of the legislative obligations of licensees, where ASIC have prescribed the opportunities where recognition of current competence can be undertaken for these units.

Resources required for assessment: /

Unless otherwise specified, there are no significant resource implications for assessment of this unit, apart from access to a relevant workplace or closely simulated office environment and the use of a range of office equipment, technology and consumables. These may include standard commercial computer hardware, software, telephones, facsimiles, and other relevant office equipment.

KEY COMPETEnCIES
The seven key competencies represent generic skills considered for effective work participation. The numbering against each of the key competencies indicates the performance level required in this unit.
Performance Level 1 - at this level, the candidate is required to undertake tasks effectively
Performance Level 2 - at this level, the candidate is required to manage tasks
Performance Level 3 - at this level, the candidate is required to use concepts for evaluating and reshaping tasks
Key Competency / Example of Application / Performance Level
How can communication of ideas and information be applied? / Presenting solutions and strategies to clients will require the communication of ideas and information. / 2
How can information be collected, analysed and organised? / Conducting research to determine appropriate strategies and solutions for clients will require information to be collected, analysed and organised. / 3
How are activities planned and organised? / Providing full details to client in a clear and unambiguous way will require activities to be planned and organised. / 2
How can teamwork be applied? / Gathering information for research and analysis may require the application of teamwork. / 2
How can the use of mathematical ideas and techniques be applied? / Conducting analysis and product modelling will require the use of mathematical ideas and techniques. / 3
How can problem solving skills be applied? / Determining impacts and possible risks will require problem solving skills to be applied. / 2
How can the use of technology be applied? / Use of databases and computerised equipment will require the use of technology. / 3

FNSICPRO401ADevelop and maintain in-depth knowledge of products and services used by your organisation or sector

Unit descriptor / This unit covers the development of an in-depth knowledge of the financial products and services provided by your organisation, or those that your organisation uses, and where they may be applied to customers’ needs.
Application of the unit / This unit requires the identification of the financial products and services provided by your company (their own, or those from other vendors or organisations which they use), their unique characteristics, the aspects that make them competitive with other financial products and services, and how they can be used to satisfy the needs of customers. It may be applied to a wide range of products or services in the financial services industry.
Relationship to other units / This is new unit.
ELEMENT / PERFORMANCE CRITERIA
Elements define the essential outcomes of a unit of competency. / Performance Criteria describe the required performance needed to demonstrate achievement of the Element. Bold, italicisedterms are elaborated in the Range Statement. Assessment of performance is to be consistent with the Evidence Guide.
1. / Identify the products and services your organisation uses / 1.1Company products and services used by your organisation are identified and the purpose of each determined
1.2The characteristics of the products and services are identified and their strengths, weaknesses, terms, and conditions understood and communicated to clients, where applicable
1.3The organisation’s promotional strategy for products and services are accessed and applied in business activities
2. / Identify compliance implications of product / 2.1Compliance implications are established and documented
2.2Client is provided with all necessary information and documentation as per compliance requirements
3. / Determine the appropriate users for products and services / 3.1The function of each product and service and the customer needs it satisfies are identified and documented
3.2The customer characteristicsthat best suit each product are researched
3.3The products and services used by the organisation are compared with the products of competitors as a basis for selecting the most effective approach to matching the products to customer needs
3.4Approaches to selling the products and services, keeping in mind competitors, is evaluated and useful approaches to meeting customer needs are determined
4. / Maintain product knowledge / 4.1Relevant products and services are reviewed regularly and any changes to terms and conditions identified and applied in daily work
4.2Systems for keeping up with changes and maintaining up to date knowledge about relevant products and services are put in place
4.3Emerging trends affecting the financial industry are continuously reviewed and applied to product and service knowledge
REQUIRED KNOWLEDGE & SKILLS
Knowledge requirements include:

general marketing and promotional techniques such as product placement, how to identify strengths and weaknesses, and how to overcome resistance
organisation’s products and services or those used by the organisation
products and services used by competitors that are similar to the organisation’s
company policies in terms of promotional and marketing strategies
general knowledge of the systems that can be accessed to obtain up to date information on products, services and competition such as the internet, consumer reports, financial reviews and conferences and events that promote such products and services
approaches to selling products and services such as through advertisements, seminars, networks and direct mail

Skills requirements include:

market and consumer research such as researching on the internet, written publications, and consumer reports and updates
marketing skills such as appropriately reading market and consumer trends, matching relevant products that meet these needs, communicating the benefits of products and services in a way that informs the market, and the ability to identify different types of customers in the relevant market

Range Statement
The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Company products and services may include: / Company products and services may include:

personal loans, credit cards, debit cards, commercial loans, home loans or any other financial service or product that has been developed by and for your organisation

Product and service characteristics may include: / Product and service characteristics may include:

interest rates
flexibility
time limits
fees
transferability

Promotional strategy may include: / Promotional strategy may include:

marketing and promotional plans
strategic plans

Compliance implications may include: / Compliance implications may include:

FSRA requirements
Product Disclosure Statements
Industry Code of Practice requirements
Relevant Acts and legislation

Customer needs may include: / Customer needs may include

flexibility of services
ability to change services
family concerns
age considerations
amount of savings and income

Customer characteristic may include: / Customer characteristic may include:

age
marital status
income
profession
geographic location

Systems may include: / Systems may include:

database systems
seminars
induction programs
training programs

Emerging trends may include: / Emerging trends may include:

changes in the economic climate
changes in the political/international climate
new technologies
financial market changes
interest rate changes
valuation of currency

the ability to identify and describe the financial products and services their company uses and/or provides, their unique characteristics, how they rate to competitors, and the type of customers and customer needs they are best suited for

Critical aspects of evidence
Evidence required for demonstration of consistent performance: /

Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range of Variables and contexts applicable to the work environment.

Delivery/assessment relationship to other units: /

This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.
Evidence is most relevant when provided through an integrated activity which combines the elements of competency for the unit, or a cluster of units of competency.

Assessment requirements
Method of assessment: /

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment: /

This unit may be assessed in a simulated work environment. Assessment of performance requirements in the unit should be undertaken in an industry context.

Resources required for assessment: / Assessment of this unit of competence requires access to:

qualified assessors and assessment guidelines
a system which facilitates recording of trainee’s profiles and progress
facilities for workplace or simulated environment assessment.

KEY COMPETEnCIES
The seven key competencies represent generic skills considered for effective work participation. The numbering against each of the key competencies indicates the performance level required in this unit.
Performance Level 1 - at this level, the candidate is required to undertake tasks effectively
Performance Level 2 - at this level, the candidate is required to manage tasks
Performance Level 3 - at this level, the candidate is required to use concepts for evaluating and reshaping tasks
Key Competency / Example of Application / Performance Level
How can communication of ideas and information be applied? / Record keeping of product/service to match client needs will require the communication of ideas and information. / 2
How can information be collected, analysed and organised? / Researching and identifying products used by the organisation will require information to be collected, analysed and organised. / 2
How are activities planned and organised? / Updating self or others on changes to products or services will require planning and organising of information. / 1
How can teamwork be applied? / Considering appropriate users for products or services may require teamwork to brainstorm ideas. / 1
How can the use of mathematical ideas and techniques be applied? / Determining characteristics of certain products and services may require mathematical ideas. / 1
How can problem solving skills be applied? / Determining which products and services are most useful to a diversity of client requirements will require problem solving. / 2
How can the use of technology be applied? / Utilising databases and software that can keep track of product/service information will require the use of technology. / 2