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Evidence Guide: FNSFMK511 - Apply limits when trading

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

 

FNSFMK511 - Apply limits when trading

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

Identify trading limits

  1. Access and accurately interpret various types of trading limits in an organisation
  2. Identify organisational trading limits and incorporate in any potential transaction or position assessment
  3. Constantly monitor, interpret and apply changes to organisational trading limits
Access and accurately interpret various types of trading limits in an organisation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify organisational trading limits and incorporate in any potential transaction or position assessment

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Constantly monitor, interpret and apply changes to organisational trading limits

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond to trading limit breaches

  1. Follow and comply with process for identifying and reporting potential trading breaches to relevant personnel according to organisational guidelines
  2. Identify and comply with organisational process for approving limit breaches, including all communication requirements
  3. Identify and comply with organisational process for dealing with inadvertent breaches, including all communication requirements
  4. Manage consequences of breach according to organisational guidelines
Follow and comply with process for identifying and reporting potential trading breaches to relevant personnel according to organisational guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and comply with organisational process for approving limit breaches, including all communication requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and comply with organisational process for dealing with inadvertent breaches, including all communication requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage consequences of breach according to organisational guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review trading limits

  1. Monitor trading limits in place and compare with current trading position
  2. Identify when trading limit is close to being met, and devise appropriate response
Monitor trading limits in place and compare with current trading position

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify when trading limit is close to being met, and devise appropriate response

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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 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.

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.