1. Establish relationship with client

1.1 Establish relationship with client by communicating directly and openly

1.2 Inform client of the role and capacity of the adviser, and the licensee responsible for the adviser's conduct

1.3 Establish client’s understanding of the regulated emissions market in order to determine the range of services to be offered.

1.4 Explain the scope and limitation of the advice and services including fee and charging methodology, procedures for complaints handling and the circumstances in which they should be engaged

1.5 Respond to enquiries in relation to the services and products to be provided in a professional manner

2. Identify and analyse the client’s objectives, needs, financial situation and risk profile

2.1 Establish client's motivation for investing in the regulated emissions market

2.2 Identify and document all relevant liabilities and assets for client, their expectations of cash flow and any relevant taxation obligations

2.3 Identify client needs by encouraging expression of goals and objectives (short, medium and long-term) relevant to the product

2.4 Assess client's risk profile, and agree the rating with them

2.5 Explain the investment implications for client for achieving their objectives and needs based on their risk profile, cash flow and taxation implications

2.6 Consult with client throughout the analysis for further clarification where necessary

2.7 Analyse whether there is a need for specialist advice and refer to an appropriate adviser if required

3. Develop a strategy for client

3.1 Assess the broad strategies available to client

3.2 Discuss the strategies identified with client to determine and agree on the most suitable approach for their needs, objectives and risk profile

3.3 Select the appropriate emissions products and undertake research, analysis and financial modelling to establish which product mix best meets client's needs, objectives and risk profile.

3.4 Prepare statutory and organisational strategy and transaction documentation

3.5 Identify and discuss with client any conflicts of interest arising from selected strategy

4. Present and negotiate strategies and solutions with client

4.1 Explain to client the proposed transaction and the strategic methodology used in a clear and unambiguous way

4.2 Check that the client understands the relevant details, risks, terms and conditions, advantages and disadvantages of the transaction recommended

4.3 Negotiate and resolve any concerns or issues that client has regarding the proposed transaction

4.4 Explain the fee and cost structures for the transaction and the timeframes for execution

5. Implement and document agreed plan, policy or transaction

5.1 Prepare and provide client with written documentation where required by law or codes of practice that incorporate the basis upon which the advice is given

5.2 Explain the supporting documentation, and confirm the content and advice against the established investment requirements, risk profile and objectives

5.3 Seek confirmation from client that they understand the proposed transaction and its fee implications, and gain formal agreement to proceed in line with regulatory guidelines, accepted industry practice and organisation policies

5.4 Exchange signed copies of appropriate documentation and the signed agreement with client

6. Determine and agree any ongoing services required

6.1 Agree with client what type and form of ongoing service will be provided, including reporting on performance of this transaction and other associated services

6.2 Explain fees and costs for ongoing and specifically defined service and obtain confirmation of understanding from client

Required skills

communication skills to:

determine and confirm client requirements, using questioning and active listening as required

negotiate financial service transactions with clients

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

literacy skills to:

read and interpret documentation from a variety of sources

analyse information and products to ensure appropriateness to client needs, currency and accuracy

complete documentation accurately

research and analysis skills for accessing, interpreting and managing complex information

numeracy and IT skills to:

interpret financial information and calculate client costs, risks and returns

access and use appropriate software such as spreadsheets and databases

use internet to research information

interpersonal skills to establish rapport with clients, and to liaise with other team members and specialists

self-management skills for complying with ethical, legal and procedural requirements

learning skills to maintain knowledge of products and services and any changes to compliance legislation and requirements

judgement skills for:

applying ethical principles to decision making in the advising process

forming suitable recommendations in advising situation

organisational and time management skills to sequence tasks, meet timelines and arrange meetings

Required knowledge

advisory functions including:

the role of the representative or adviser

participants in the advisory services market

range of services provided

profile and financial information of the client

appropriateness of a risk assessment

relevant industry codes of practice and conduct

complaints resolution procedures (internal and external)

regulator guidelines including the requirements of ASIC

A general understanding of Australian financial services products (general definition, specific inclusions and exclusions), financial investment products and financial risk products

Knowledge of products available for risk management, speculation and investment in regulated emissions markets:

Australian Carbon Credit Units (ACCUs)

Carbon units

Eligible international emissions units

Risks, risk characteristics and mitigating strategies relative to regulated emissions:

regulatory risk

documentation risk

market/pricing risk

fraud

emerging market risk

counterparty risk

taxation issues in relation to carbon emissions products and markets in which they operate

strategy development in an emissions marketplace

Evaluation of client objectives against risks

Concept development and evaluation

theories of investment, portfolio management and management of investment and risk:

investment concepts

investment strategies

identification of types of risk

client risk profile

the legal environment and disclosure and compliance:

the role of the representative or adviser

relevant legal principles (e.g. Corporations Act, Financial Services Reform Act (FSRA), Trade Practises Act)

the relationship between ethics and regulatory requirements (e.g. good faith, utmost good faith)

full disclosure of remuneration and fees and any other conflicts of interest which may influence the adviser's recommendation

elements of the Registered Representatives Examination (where relevant)

Chi-X Australia or Australian Securities Exchange (ASX) Operating Rules (where relevant)

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

Establish and define the nature and scope of the client and adviser relationship

Collect qualitative and quantitative information in order to perform strategic analysis

Develop a strategic plan in emissions products that is appropriate for the client profile

Evaluate the financial strategy with respect to local and international financial markets and factors influencing the regulated emissions market

Develop advice that adheres to the relevant regulatory, ethical, industry and organisational requirements

Demonstrate application of ethical principles in decision making during the advising process

Communicate the details of a financial advice document and establish client understanding of the proposal

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

that the intent and purpose of the unit is matched with an appropriate choice and balance of assessment instruments

required skills have been adequately demonstrated and assessed in both breadth and depth

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

setting and reviewing client advisory simulations

observation of role plays

oral or written questioning to assess candidate's knowledge of the advice process and its application to the product or market sector

evaluating - portfolios covering the advisory cycle

analysis of critique of colleague' s workplace advising practice

direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate

This unit forms part of a suite attesting to the competence of an occupation operating in a regulated environment. The expectation of the regulator is that assessment instruments chosen will provide robust testament to both the knowledge and skill of the candidate. The use of one single instrument is not appropriate in the assessment of this unit.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

Assets and liabilities includes

Can include personal, financial and business details. Will depend on whether client is an individual or business, and the business structure utilised

Financial modelling

The scope of meaning of this term will depend on the client and the nature of their investment objectives. It may refer to financial modelling for strategy development for a client or to financial modelling for a project if the client is a business investing in a carbon farming initiative