Application
This unit describes the skills and knowledge required to identify, respond to and periodically review trading limits set by an organisation.
It applies to individuals who use specialised knowledge, analytical skills and systematic approaches to manage risk and implement procedures.
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. Identify trading limits | 1.1 Access and accurately interpret various types of trading limits in an organisation 1.2 Identify organisational trading limits and incorporate in any potential transaction or position assessment 1.3 Constantly monitor, interpret and apply changes to organisational trading limits |
2. Respond to trading limit breaches | 2.1 Follow and comply with process for identifying and reporting potential trading breaches to relevant personnel according to organisational guidelines 2.2 Identify and comply with organisational process for approving limit breaches, including all communication requirements 2.3 Identify and comply with organisational process for dealing with inadvertent breaches, including all communication requirements 2.4 Manage consequences of breach according to organisational guidelines |
3. Review trading limits | 3.1 Monitor trading limits in place and compare with current trading position 3.2 Identify when trading limit is close to being met, and devise appropriate response |
Evidence of Performance
Evidence of the ability to:
identify and monitor financial trading limits using a range of data sources
deal effectively and promptly with financial trading limit breaches following all required industry and organisational policy and procedures.
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:
assess the impact of the following key economic features on trading limits:
characteristics and impacts of economic and business cycles
monetary and fiscal policies
interest rates, exchange rates and inflation
discuss the purpose of trading limits and why they are strictly enforced
compare and contrast data collection and management systems
describe key aspects of organisational risk management framework, including risk tolerance and application via limits
discuss the structure and interrelationships within the financial markets.
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
financial markets information.
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 | 1.1-1.2, 2.1, 3.1 | Accurately interprets and analyses complex information from a range of sources and consolidates information relevant to requirements |
Writing | 1.3, 2.1, 2.3, 3.2 | Prepares documents incorporating clear and detailed information organised sequentially for internal reference |
Oral Communication | 1.3, 2.1, 2.3 | 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 | 1.1-1.3, 2.1-2.3, 3.1 | Uses mathematical equations to perform calculations and applies statistical techniques to achieve required outcomes |
Navigate the world of work | 2.1-2.4, 3.2 | Identifies and follows relevant legislative requirements, explicit and implicit protocols, policies and procedures, and meets expectations associated with own role Keeps up to date on changes to legislation or regulations relevant to own rights and responsibilities, and considers implications of these when planning and undertaking work |
Interact with others | 2.2, 2.3 | Selects and uses appropriate conventions and protocols when communicating with colleagues, recognising the importance of communicating timely information |
Get the work done | 1.1-1.3, 2.4, 3.1-3.2 | Accepts responsibility for planning and sequencing complex tasks and workload Takes responsibility for high impact decisions in complex situations involving many variables and constraints Uses digital tools to access and organise complex data and analyse multiple sources of information for strategic purposes |
Sectors
Financial markets