NTISthis.com

Evidence Guide: FNSFMK509A - Apply knowledge of transaction documentation and processing

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSFMK509A - Apply knowledge of transaction documentation and processing

What evidence can you provide to prove your understanding of each of the following citeria?

Complete pre deal documentation and authorisations

  1. Master agreements are confirmed and in place
  2. Required Know Your Customer (KYC) and Anti-Money Laundering (AML) checks are completed for the client
  3. Client representative is confirmed as authorised to deal on behalf of their organisation
  4. Client authorisation to trade in the specified financial product is confirmed
  5. The process for approving a client to deal in a new product is outlined to the client
Master agreements are confirmed and in place

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Required Know Your Customer (KYC) and Anti-Money Laundering (AML) checks are completed for the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client representative is confirmed as authorised to deal on behalf of their organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Client authorisation to trade in the specified financial product is confirmed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The process for approving a client to deal in a new product is outlined to the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Execute a transaction for a client

  1. That the transaction is within the client's authorised trading limits is checked and verified
  2. Details of the trade are confirmed and the client's acknowledgement obtained after receiving the order
  3. Accurate details of the transaction are captured in the organisation's systems, including risk management requirements in the required timeframe
That the transaction is within the client's authorised trading limits is checked and verified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Details of the trade are confirmed and the client's acknowledgement obtained after receiving the order

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Accurate details of the transaction are captured in the organisation's systems, including risk management requirements in the required timeframe

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete processes for confirming and settling a transaction

  1. Organisational confirmation documentation is produced and forwarded to client for approval and authorisation
  2. Authorised confirmation documentation is received by organisation
  3. Appropriate technology is utilised in transaction and confirmation processing
  4. Confirmation documentation is forwarded to client outlining settlement exchange details
  5. Financial transaction is completed according to confirmed settlement procedures and organisational and industry requirements
  6. Exceptions and fails are investigated promptly
Organisational confirmation documentation is produced and forwarded to client for approval and authorisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Authorised confirmation documentation is received by organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Appropriate technology is utilised in transaction and confirmation processing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Confirmation documentation is forwarded to client outlining settlement exchange details

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Financial transaction is completed according to confirmed settlement procedures and organisational and industry requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Exceptions and fails are investigated promptly

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

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

Evidence of the ability to:

effectively apply knowledge of financial product transaction requirements

identify and manage financial risk

deal effectively with clients and accurately interpret their trading requirements in a timely manner.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to Australian Standard 4360 Risk Management.

Method of assessment

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

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Required Skills and Knowledge

Required skills

well-developed communication skills to:

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

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

risk assessment and management skills

literacy skills for competing documentation accurately and comprehensively to the organisation

well-developed numeracy and IT skills to:

analyse complex financial data

use spreadsheets and databases

use internet information

use information systems

problem solving skills to identify any issues that have the potential to impact on clients and the organisation and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

Required knowledge

Australian Standard 4360 Risk Management

Anti-Money Laundering and Counter-Terrorism Financing Act

financial risk management processes and techniques

organisational and industry transaction procedures

organisational policies and procedures

trading requirements and checking systems

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Master Agreements may be based on:

International Swaps and Derivatives Association (ISDA) agreements

may include:

a Credit Support Annex (CSA).

Clients may include:

companies and organisations

members of the public

shareholders.

Details of the trade may include:

considerations

counterparty

face value

maturity date

price

start date

trade date.

Accurate details of the transaction must be compliant with:

Australian Securities Exchange (ASX) market rules

Australian Clearing House (ACH) clearing rules

Australian Settlement and Transfer Corporation (ASTC) settlement rules

(collectively referred to as the ASX Rules).

Settlement exchange details may include:

counterparty detailer

deal number

exchange amounts and currencies

exchange rates

floating rate

how settlement is taking place

transaction date

value date.

Exceptions and fails may involve implementing:

Business Continuity Planning (DCP)

Disaster Recovery Procedures (DRPs).