Application
This unit describes the skills and knowledge required to make legal and ethical decisions in relation to a trustee organisation's clients, including clients who lack financial capacity and minor beneficiaries.
It applies to individuals who deal directly with clients and other employees of a trustee organisation who make client decisions and provide traditional trustee services.
Work functions in the occupational areas where this unit may be used are subject to statutory and common law requirements. Refer to the FNS Implementation Guide Companion Volume, the Corporations Act (Commonwealth), relevant state and territory legislation and case law 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 the type of client and the client's needs, interests and rights | 1.1 Confirm whether the client is a beneficiary, minor beneficiary or represented person 1.2 Identify the needs, interests and rights of the client and the relevant fiduciary duties and substituted decision-making principles that should be applied in dealing with the client 1.3 Identify broader ethical issues associated with the delivery of traditional trustee company services to the client |
2. Apply legal and ethical principles to fiduciary duty and decision-making | 2.1 Identify the legal requirements necessary to discharge a fiduciary duty, to act as a substituted decision-maker and to act ethically 2.2 Make decisions in relation to the client which meet the client's needs, are in the client's best interest and uphold the client's rights 2.3 Support and encourage clients to exercise their rights without compromising their safety and that of others 2.4 Inform other relevant stakeholders of the client's needs, interests and rights |
3. Maintain a working knowledge of trustee fiduciary duties and substituted decision-making and ethical principles | 3.1 Access relevant legal and organisational sources to ensure current knowledge of fiduciary duty, substituted decision-making and ethical principles 3.2 Modify any client services, processes and procedures where necessary to comply with current fiduciary duty, substituted decision-making and ethical principles |
Evidence of Performance
Evidence of the ability to:
identify the relevant fiduciary duty, substituted decision-making and ethical decision-making principles, and associated legislative requirements when providing traditional trustee services to a client
apply fiduciary duty, substituted decision-making and ethical decision-making principles and associated legislative requirements to make decisions for a client and explain to the client or other relevant stakeholder, how that decision meets the client's needs and interests and upholds their rights
use systems to maintain knowledge of fiduciary duty, substituted decision-making and ethical decision-making principles and associated legislative requirements.
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:
explain key elements of the legislative requirements, including common law, that apply when providing traditional trustee services to clients including:
fiduciary duty
substituted judgement
ethics and equity
explain key elements of the prudent person principles including:
diversification
investment risks including losing capital or income
capital maintenance
capital depreciation
capital appreciation
estimated income return
liquidity and marketability of the proposed investment
aggregate value of estate in trust
describe client needs, interests and rights relevant to the requirements of fiduciary duty, substituted decision-making and ethical decision-making principles including:
physical and emotional security
support and care
economic support
household assistance and maintenance
possessions
bank accounts
accommodation
facilities
services available and desired
recreational pursuits
participation or non-participation to the degree desired
receive or refuse quality services
human rights including the right to freedom from discrimination
describe traditional trustee company products and services including:
estate planning
writing wills
acting as executor of deceased estates
establishing and administering personal trusts
preparing and administering powers of attorney
acting as guardian or financial manager, usually under court or tribunal order, to protect vulnerable beneficiaries
administering charitable trusts and foundations
discuss key sources of information on fiduciary duty, substituted judgement and ethics and equity principles and associated legislative requirements including:
courts
existing or proposed trust deeds
industry bodies
relevant federal, state and territory government organisations
organisational policies and procedures.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the personal trustee field of work and include access to:
common office equipment, technology, software and consumables
appropriate legislation and regulations relevant to trustee organisations
organisational reference materials such as policies, procedures, manuals and checklists.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
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 | Critically analyses documentation from a variety of sources and documents and consolidates information to determine requirements |
Oral Communication | 1.1, 1.2, 2.3, 2.4 | Participates in verbal exchanges using active listening and questioning techniques to convey information and elicit the views and opinions of key stakeholders Clearly explains detailed information using concepts, language, tone and pace appropriate to the audience |
Navigate the world of work | 1.3, 2.1, 2.2, 3.2 | Makes decisions to develop and implement solutions for clients to ensure organisation meets requirements Monitors and reviews the organisation’s policies and procedures and adherence to legislative and regulatory requirements and ethical principles |
Interact with others | 1.1,1.2, 2.3, 2.4 | Uses a variety of relevant communication tools and strategies in building and maintaining effective working relationships Takes a lead role in communicating the client's best interests |
Get the work done | 1.1-1.3, 2.1, 2.2, 3.1, 3.2 | Systematically gathers and analyses all relevant information to determine work requirements and make decisions Develops routine and non-routine solutions with strategic implications that involve a diverse range of stakeholders Monitors results and makes adjustment where necessary Uses digital systems and technologies to enter, store or access information |
Sectors
Personal trustee