Application
This unit describes the skills and knowledge required to compile and analyse financial information and data to determine the price of financial products and record financial transactions.
It applies to individuals who use specialised financial knowledge, systematic approaches and analytical skills to meet requirements.
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. Compile and analyse financial information and data | 1.1 Identify sources of financial data relating to financial products and financial markets for analysis purposes and collect according to organisational practices 1.2 Analyse financial data using standard financial market investment concepts to evaluate current market position and review this data against selected financial products |
2. Calculate transaction price | 2.1 Formulate financial transaction price using standard organisational practices and taking into account a range of organisational price impacts 2.2 Review price calculated against client requirements and adjust as required 2.3 Advise client of financial transaction price in accordance with organisational guidelines |
3. Record financial transaction | 3.1 Confirm client acceptance of financial transaction price according to organisation requirements and complete relevant transaction documentation as necessary 3.2 Enter all transaction details into organisation’s dealing systems 3.3 Report details of transaction to authorised trade repository where required by regulation |
Evidence of Performance
Evidence of the ability to:
compile financial information and data, and analyse to determine price impacts
calculate financial prices
record financial transactions.
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 the range of financial market products that can be traded
assess the impact of the following key economic features on pricing financial products:
economic and business cycles
monetary and fiscal policies
interest rates, exchange rates and inflation
describe key features of financial markets operating software systems
analyse and discuss issues relating to risk and implications of financial positions
describe relevant mathematical principles and methodologies for pricing financial products and transactions.
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 services product information
dealing 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, 1.2, 2.1-2.2 | Accurately researches and analyses complex information from a range of sources Consolidates information and identifies gaps relevant to requirements |
Writing | 2.3, 3.1-3.3 | Accurately records information and data using required format, terminology and conventions specific to requirements Develops material to a specific audience using clear and detailed language |
Oral Communication | 2.3, 3.1 | 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, 1.2, 2.1-2.2, 3.1-3.3 | Applies statistical techniques and undertakes comparative analyses to achieve required outcomes Uses mathematical equations to perform calculations and develop transaction prices |
Navigate the world of work | 2.1, 2.3, 3.1 | 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 | 2.3, 3.1 | Uses various techniques to identify different perspectives, build rapport and confirm, clarify or revise understanding |
Get the work done | 1.1-1.2, 2.1-2.3, 3.1-3.3 | 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