Application
This unit describes the skills and knowledge required to assess client needs and prepare appropriate trading strategies.
It applies to individuals who manage relationships and use specialised knowledge and analytical skills to make judgements and prepare customised solutions.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Analyse client position, risks and needs | 1.1 Obtain and confirm client needs and objectives 1.2 Obtain and analyse market and product data relevant to client needs and objectives 1.3 Analyse market opportunities for client using appropriate analytical tools and methodologies 1.4 Identify and justify trading opportunities for client as required |
2. Develop trading strategy and manage risk in transactions | 2.1 Identify risks in strategy to both client and organisation 2.2 Discuss risks with client and appropriate organisational personnel and make decision on whether to proceed or adjust strategy 2.3 Finalise strategy in accordance with organisation’s policy, procedures and the legal and regulatory framework |
3. Execute trading strategies for client | 3.1 Agree and set entry and exit levels and conditions for proposed strategy 3.2 Identify appropriate order types or limit types for executing strategy and confirm order details with client 3.3 Undertake ongoing monitoring for client, including adjusting trading strategy where warranted |
Evidence of Performance
Evidence of the ability to:
apply compliance requirements for organisational and industry financial trading procedures
analyse needs to develop appropriate strategies to suit circumstances using appropriate tools and techniques.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
compare and contrast financial products that can be traded
outline a range of analytical tools and methodologies that can be used to analyse market opportunities, including quantitative and qualitative approaches
determine the relevant financial risk management factors at a client and organisational level, and discuss how to incorporate these into the strategy
describe appropriate financial trading reporting procedures and documentation
detect which relevant financial trading systems need to be used for strategy developed.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial markets field of work and include access to:
office equipment, technology, software and consumables
integrated financial software system and data.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1.4 | Interprets and analyses textual information and financial data from a range of sources to determine and confirm requirements |
Writing | 1.1, 2.1, 3.3 | Accurately frames and prepares documentation following organisational procedures and protocols |
Oral Communication | 1.1, 2.2, 3.3 | Participates in verbal exchanges using active listening and questioning techniques to share, convey and clarify information Uses language, terminology and concepts appropriate to audience and purpose |
Numeracy | 1.1-1.4, 3.1-3.3 | Uses mathematical equations to perform calculations, modelling, estimations and testing to achieve required outcomes |
Navigate the world of work | 2.2-2.3 | Keeps up to date on changes to legislation or regulations relevant to own rights and responsibilities and considers implications of these when negotiating, planning and undertaking work |
Interact with others | 1.1, 2.2, 3.4 | Uses a range of strategies to identify different perspectives, establish rapport and maintain a sense of connection |
Get the work done | 1.2-1.4, 2.1-2.3, 3.1-3.4 | Accepts responsibility for planning and sequencing complex tasks and workload Takes responsibility for high impact decisions in complex situations involving many variables and constraints Recognises and anticipates potential problems using analytical processes to propose possible solutions Uses digital tools to access and organise complex data and analyse multiple sources of information for strategic purposes |
Sectors
Financial markets