Evidence of the ability to:
work effectively with clients to collect relevant personal and/or business information that will enable identification of their objectives, needs, expectations, financial situation and risk profile
interpret and comply with relevant industry regulations and codes of practice requirements that relate to the provision of financial product advice
analyse client information and assess client risk profile to determine the characteristics of financial products and services relevant to client needs.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must satisfy the knowledge requirements relevant to the products and activities in which advice is given.
For general insurance, deposit products and non-cash payments and relevant first home saver account products the individual must:
explain the legal environment including disclosure and compliance covering:
role of the representative or adviser
relevant legal principles including the Corporations Act, Financial Services Reform Act (FSRA), Competition and Consumer Act, Insurance Contracts Act and Australian Securities and Investments Commission (ASIC) Act
the relationship between ethics and regulatory requirements including good faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser’s recommendation
name relevant industry codes of practice and conduct
identify complaints resolution procedures (internal and external)
outline relevant ASIC regulatory guidelines.
For general insurance the individual must:
summarise the characteristics and participants of Australian insurance markets and the roles played by intermediaries, and identify insurance products including:
definition of an insurance product
conditions, exclusions and level of coverage of risk transfer products
types of insurance products
pricing of risk products
identify taxation issues relating to insurance products
explain advisory functions including:
role of the representative, broker or adviser
participants in the insurance advisory services market
range of services provided
profile and financial information of the client
appropriateness of a risk assessment
summarise the specific product knowledge for the general insurance products in which advice is given including:
standard cover (and deviations)
policy wordings
taxes and charges
insurance claims
premium rating and risk selection
reporting
product development
underwriting.
For deposit products and non-cash payment facilities the individual must:
name the types of deposit products and non-cash payment products
summarise the product characteristics.
For first home saver accounts the individual must:
name the types of first home saver account products including the range of accounts, associated risks and alternative products
summarise the product characteristics – eligibility and withdrawal, and government conditions
explain the taxation issues relating to first home saver accounts.