FINANCIAL SERVICES TRAINING PACKAGE FNB99

Transcription

1 FINANCIAL SERVICES TRAINING PACKAGE FNB99 Stock Broking Competency Standards FNBASX01A FNBASX06A This is Volume 7 of a 13-volume set. This volume should not be used in isolation but in the context of the complete set for the Financial Services Training Package. The material contained within this volume is part of the endorsed component of the financial services training package endorsed by the National Training Quality Committee in June 1999 and agreed by Ministers. This Training Package is to be reviewed by 30 June 2003.

2 Australian National Training Authority (ANTA), 2003 This work has been produced with the assistance of funding provided by the Commonwealth Government through ANTA. An individual may make a photocopy of all or part of the work for their personal use. A Registered Training Organisation may make photocopies of all or part of the work for the teaching purposes of that organisation, including for supply to its students provided that any consideration does not exceed the marginal cost of preparation, reproduction, assembly and delivery. Except as permitted under the Copyright Act 1968, all other rights are reserved. Requests for permission may be directed to: Australian National Training Authority Level 11, AMP Place 10 Eagle Street BRISBANE, QLD 4000 Phone: (07) Fax: (07) This work is the result of wide consultations with Australian industry participants. It is a collaborative view and does not necessarily represent the view of ANTA or any specific body. For the sake of brevity it may omit factors which could be pertinent in particular cases. While care has been taken in the preparation of this Training Package, ANTA and the original developer do not warrant that any licensing or registration requirements specified here are either complete or up-to-date for your State or Territory. ANTA and the original developer do not accept any liability for any damage or loss (including indirect and consequential loss) incurred by any person as a result of relying on the information contained in this Training Package. This Training Package should not be regarded as professional advice and it should not be relied upon in any important matter without obtaining appropriate advice relevant to your circumstances. Published by: Australian Training Products Ltd Level 25, 150 Lonsdale St Melbourne 3000 Phone: Fax: sales@atpl.net.au First Published: October 1999 STOCKCODE: atp9089 ISBN: Financial Services Training Package FNB99 Stockbroking Competency Units Vol 7 0f 13 Printed for Australian Training Products Ltd by Document Printing Australia Melbourne, Australia AESharenet: P Print Version No: Version 4 8 August 2003

3 IMPORTANT Training Packages are living documents. Changes are periodically made to reflect the latest industry practices. As a user of the Training Package, and before commencing any form of training or assessment, you must ensure delivery is from the current version. Ensure you are complying with this requirement by: Checking the version identifier code of the version you currently have (located on the imprint page, just below the copyright statement) Accessing the Australian Training Products (ATP) website and comparing the version identifier. Where the ATP website shows a different version, the modification history, again shown on the ATP website in the training package sample, will display the changes made in all versions. ATP website for version comparison ( Changes in units of competency and packaging of qualifications are reflected on the National Training Information Service which only displays current information:

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5 FINANCIAL SERVICES TRAINING PACKAGE FNB99 MODIFICATION HISTORY ENDORSED MATERIALS Please refer to the National Training Information Service for the latest version of Units of Competency and qualification information ( Financial Services Training Package FNB99 Sheet: 1 of 1 Version Date of Release Authorisation Comments 4 July 2003 NTQC 3.00 October 2002 NTQC 2.00 July 2001 NTQC Addition of Superannuation Standards. Three new qualifications in Superannuation Update of all Competency Standards; Addition of ASIC Standards, Financial Planning Standards; addition and revision of Accounting Standards; Revision of Qualifications Framework and Core Competency Units. Addition of Conveyancing Standards and changes to general Insurance Standards. Six new qualifications, four in General Insurance and two in Conveyancing sector June 1999 NTFC Primary release Forms control: All endorsed Training Packages will have a version number displayed on the imprint page of every volume constituting that Training Package. Every Training Package will display an up-to-date copy of this modification history form, to be placed immediately after the contents page of the first volume of the Training Package. Comments on changes will only show sufficient detail to enable a user to identify the nature and location of the change. Changes to Training Packages will generally be batched at quarterly intervals. This modification history form will be included within any displayed sample of that Training Package and will constitute all detail available to identify changes. 2

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7 FINANCIAL SERVICES TRAINING PACKAGE FNB99 CONTENTS FNBASX01A Determine client requirements and expectations 7 FNBASX02A Provide appropriate and timely information and advice to clients 15 FNBASX03A Conduct research to support recommendations 24 FNBASX04A Record and implement client instructions 30 FNBASX05A Complete transaction processing 38 FNBASX06A Implement and manage compliance with stockbroking regulations and standards 44 2

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9 Stockbroking Competency Standards

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11 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS FNBASX01A Stream National Code Functional Area Unit Description Determine client requirements and expectations Stockbroking FNBASX01A Promote/Monitor Client Service This unit describes the function of determining a clients financial requirements and expectations in regard to stock market investment. ELEMENT 1. Develop an awareness of the client s situation PERFORMANCE CRITERIA a) Relevant facts and information are obtained courteously and professionally to determine client s situation prior to defining client s expectations, requirements and objectives. b) Clients are encouraged to disclose relevant information to determine their personal/financial situation and special needs. c) Summary analysis of client s financial position is developed based on extent of client disclosure. d) Client contact is categorised based on extent of client disclosure. e) Further advice is not offered or provided if client is categorised as requiring execution/settlement only action. 2. Obtain relevant knowledge of client s financial position and risk profile 3. Determine client expectations and requirements with respect to stock or portfolio advice a) Where relevant, current listed stock or investment portfolio position of the client is ascertained. b) Risk and fraud indicators are identified accurately and consistently. a) Client is encouraged to express and clarify their requirements and expectations. b) Client concerns, if any are identified and responded to promptly and appropriately. c) Client s investment needs and preferences with respect to stock selection or portfolio are determined. d) Specialist advice is sought where necessary or client is referred to appropriate personnel or organisation where required services are not available or cannot be provided. e) All information and facts provided by client is analysed and appropriate risk/reward and asset allocation strategy/strategies are determined in accordance with client requirements, company policies and guidelines, ASX guidelines and with relevant legislation or industry Codes of Practice. 7

12 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS ELEMENT 4. Prepare and update necessary documentation where required PERFORMANCE CRITERIA a) All relevant client facts, information and financial/personal histories are confidentially documented and filed in accordance with company policy and guidelines and relevant legislation or industry Codes of Practice. b) Client records are created or updated where necessary. c) Client documentation, information and histories are filed in a format and location readily accessible to other advisers. This Range of Variables is not exhaustive and may include other variables specific to particular industry sectors and/or to individual organisations and workplaces. Clients Clients may include: clients shareholders members members of the public companies and organisation stockbrokers trustees agents intermediaries Client situation Client situation may mean: client is an existing client of the organisation requests for general information requests for service advice quotations claims refunds cancellations amendments 8

13 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS Client expectations and requirements Client expectations and requirements may include: stock specific advice portfolio advice financial planning no advice speculative long or short term risk/security of investment beliefs about performance Client objectives for advice Client objectives for advice may include: special future requirements for cash personal investment interests and preferences capital growth income streams franking credits special objectives Client categorization Client categorisation may include: clients seeking no advice stock specific advise portfolio advice financial planning execution/settlement only transactions general information 9

14 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS Relevant information Relevant information may include: age personal income occupation past, present and future employment prospects employer details family structure and dependents home ownership insurance and superannuation arrangements marginal tax rates current level of liquidity investable funds level of debt extent to which the client is geared previous financial history (including bankruptcy, refusal of credit, etc.) experience with investment in stock markets current portfolio (including family holdings, any CGT related details such as stocks acquired prior to 20/09/1985) Client special needs Client special needs include: the needs of people from different cultural backgrounds age groups people with a disability Current listed portfolio Stock selection advice Portfolio advice Current listed portfolio may mean composition of client s listed security portfolio in regard to dividend/franking levels, growth and investment structure. Stock selection advice may refer to advice given on investments traded on markets provided by recognised securities exchanges. Portfolio advice may refer to situations where a client requires consideration of his/her disclosed financial situation. 10

15 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS Company policy and guidelines Company policy and guidelines may include: policies and procedures in relation to client service advertising and marketing product or service development clerical information technology and administrative systems complaints and dispute resolution procedures codes of practice Relevant legislation Relevant legislation and codes of practice may include: ASX Business Rules SCH Business Rules National Guarantee Funds Rules Taxation Act Consumer Credit Code Privacy Act Corporations Law Contracts Law Trade Practices Act Trust Law Consumer Affairs Act Secrecy Laws Industry Codes of Practice Confidentiality Confidentiality includes any requirements under legislation such as the Consumer Affairs Act, Privacy Act, Consumer Credit Code, Industry Codes of Practice, as well as standards set out in company policies and procedures. 11

16 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS Documentation Documentation may include: reference to all evidence/information considered reasons for adopting/incorporating certain information in preference to other information meeting notes records of telephone conversations memo s program recommendations advice brochures in house publications prospectuses bills receipts quotations agreements contracts or policy statements reports (research/statistical/ad hoc/ transaction/other) legal/government/professional/other documents official/general/other correspondence Document format and filing Document format and filing may be: computerised electronic manual other 12

17 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS Critical aspects of evidence will include: EVIDENCE GUIDE good interpersonal and communication skills the ability to empathise and build rapport with clients by offering thorough and on-going assistance with all enquiries and requests for service thorough knowledge and application of compliance with company policies and guidelines, industry Codes of Practice and relevant legislation previous history of providing financial advice or assistance Interdependent assessment of units: This unit may be assessed independently. Underpinning knowledge may include: sound knowledge of local and international financial markets and investments business principles and law economic climate and outlook relevant legislation and codes of practice company policy/procedures/requirements product/service terms and conditions general sales and marketing techniques complaints handling processes Underpinning skills to be demonstrated may include: good communication and listening skills relationship building telephone letter writing and record keeping basic computer literacy sales techniques problem solving organisational time management Resource implications: This unit may involve simulation equipment such as office or computer equipment; facilities for workplace or simulated environment assessment may be required. 13

18 FNBASX01A - DETERMINE CLIENT REQUIREMENTS AND EXPECTATIONS EVIDENCE GUIDE Consistency in performance: Competency is demonstrated by performance of all stated criteria including the Range of Variables applicable to the particular workplace environment and should cover a representative range of investment products and/or services. Context for assessment: Assessment of performance requirements in this unit should be undertaken in an industry context and against industry defined assessment guidelines. Aspects of competency, including attainment of relevant knowledge and skills may be assessed in a simulated work environment or other appropriate means. Key competencies: Communicating ideas and information Collecting, analysing and organising information Planning and organising activities Working with others in a team Using mathematical ideas and techniques Solving problems Using technology

19 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS FNBASX02A Stream National Code Functional Area Unit Description Provide appropriate and timely information and advice to clients Stockbroking FNBASX02A Manage Client Service This unit describes the function of providing financial information and advice to clients with regard to stock market investment options. ELEMENT 1. Analyse client expectations, requirements and investment strategies PERFORMANCE CRITERIA a) Client expectations and needs are determined in accordance with client requirements, company policies and guidelines, ASX guidelines and with relevant legislation or industry Codes of Practice. b) Appropriate strategies to meet client needs and requirements are determined promptly and accurately. c) Research is carried out and relevant research data is utilised where appropriate. d) Specialist advice and assistance where required, is sought and obtained promptly. e) Cost benefit analysis is carried out on the various strategies determined and is documented where appropriate. 2. Develop a response consistent with client investment strategies and agreed terms of business a) A range of investment options relevant to client requirements and investment strategies is selected. b) Features of the options, including potential impacts are explained in a clear, unambiguous way to clients. c) Relevant disclosures as required by legislation, industry Codes of Practice or company policies and guidelines are made to clients. d) Confirmation is sought from clients that they understand the selected options, potential impacts and disclosures. e) Requirements to put the suggested options into effect are explained and agreement to proceed is obtained from clients. f) Documentation, including suggested options, agreed investment strategies and confirmation of agreement is prepared promptly and accurately. g) Client records are updated and filed promptly. 15

20 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS ELEMENT 3. Provide on-going financial advice and review of client portfolio where requested and within agreed terms of business 4. Market services and investment opportunities to client PERFORMANCE CRITERIA a) On-going rapport is maintained with clients. b) Client satisfaction and feedback is sought regarding service performance, portfolio performance and recommended investment strategies. a) Potential investment opportunities and/or provision of additional/on-going services are identified from a review of client records and feedback and external financial markets. b) Strategies to inform existing clients of additional/on-going services and potential investment opportunities are identified and implemented. c) Client feedback on advertising/marketing strategies is sought to monitor the effectiveness of those strategies. This Range of Variables is not exhaustive and may include other variables specific to particular industry sectors and/or to individual organisations and workplaces. Clients Clients may include clients shareholders members members of the public companies and organisations stockbrokers trustees agents intermediaries Client needs Client needs include the needs of people from different cultural backgrounds, age groups, people with a disability. 16

21 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS Client expectations and requirements Client expectations and requirements may include: stock specific advice portfolio advice financial planning no advice speculative long or short term risk/security of investment beliefs about performance Company policy and guidelines Company policy and guidelines may include: policies and procedures in relation to client service advertising and marketing product or service development clerical information technology and administrative systems complaints and dispute resolution procedures codes of practice Relevant legislation and codes of practice Relevant legislation and codes of practice may include: ASX Business Rules SCH Business Rules National Guarantee Funds Rules Taxation Act Consumer Credit Code Privacy Act Corporations Law 17

22 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS Relevant legislation and codes of practice (cont d) Contracts Law Trade Practices Act Trust Law Consumer Affairs Act Secrecy Laws Industry Codes of Practice Determination of appropriate investment strategies Determination of appropriate investment strategies may include: investigation/assessment of costs/benefits liquidity safety flexibility volatility of expected income/capital growth spread of relevant products and investments tax factors Investment options, opportunities and/or strategies Investment options, opportunities and/or strategies may include: equities derivatives money market facilities portfolio management/administration research corporate advice scrip lending margin lending discretionary accounts tax factors 18

23 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS Tax factors Tax factors may include: dividend imputation franking credits capital gains tax effective investments dividend reinvestment plans bonus plans Disclosures Disclosures include: fees charges interest Documentation Documentation may include: reference to all evidence/information considered reasons for adopting/incorporating certain information in preference to other information meeting notes records of telephone conversations memo s program recommendations advice brochures in house publications prospectuses bills receipts 19

24 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS Documentation (cont d) quotations agreements contracts or policy statements reports (research/statistical/ad hoc/ transaction/other) legal/government/professional/other documents official/general/other correspondence Document format and filing Document format and filing may be: computerised electronic manual other On-going review/advice /service On-going review/advice/service may be: daily weekly monthly quarterly annually if and when required Advertising/marketing strategies Advertising/marketing strategies may include: newsletters mail outs web sites networking phone calls seminars 20

25 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS Advertising/marketing strategies (cont d) media articles voice media functions personal visits advertising 21

26 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS Critical aspects of evidence will include: EVIDENCE GUIDE good interpersonal and communication skills the ability to empathise and build rapport with clients by offering thorough and on-going assistance with all requests for service or advice thorough knowledge and application of compliance with company policies and guidelines, industry Codes of Practice and relevant legislation previous history of providing financial advice or assistance previous recommendations that were consistent with client requirements portfolio performances and client feedback Interdependent assessment of units: This unit may be assessed independently. Underpinning knowledge may include: sound knowledge of local and international financial markets and investments business principles and law economic climate and outlook relevant legislation and codes of practice company policy/procedures/requirements product/service terms and conditions basic tax factors general sales and marketing techniques analysing research reports Underpinning skills to be demonstrated may include: good communication and listening skills relationship building telephone letter writing and record keeping basic computer literacy sales techniques problem solving organisational time management 22

27 FNBASX02A - PROVIDE APPROPRIATE AND TIMELY INFORMATION AND ADVICE TO CLIENTS EVIDENCE GUIDE Resource implications: This unit may involve simulation equipment such as office and computer equipment; facilities for workplace or simulated environment assessment may be required. Consistency in performance: Competency is demonstrated by performance of all stated criteria including the Range of Variables applicable to the particular workplace environment and should cover a representative range of investment products and/or services. Previous internal performance reviews or appraisals may also be relevant for those already in the workforce. Context for assessment: Assessment of performance requirements in this unit should be undertaken in an industry context and against industry defined assessment guidelines. Aspects of competency, including attainment of relevant knowledge and skills may be assessed in a simulated work environment or other appropriate means. Key competencies: Communicating ideas and information Collecting, analysing and organising information Planning and organising activities Working with others in a team Using mathematical ideas and techniques Solving problems Using technology

28 FNBASX03A - CONDUCT RESEARCH TO SUPPORT RECOMMENDATIONS FNBASX03A Stream National Code Functional Area Unit Description Conduct research to support recommendations Stockbroking FNBASX03A Analyse Information and Reporting This unit describes the function of carrying out research to enable the determination of financial investment strategies and options for clients. ELEMENT 1. Interpret available information and conduct research PERFORMANCE CRITERIA a) Where relevant, timelines are established to meet research requirement deadlines. b) Relevant sources of information are identified accurately and consistently, and required information can be sourced/retrieved readily and promptly. c) Sources of information are constantly reviewed to ensure currency and accuracy. d) Research findings logically flow from the interpretation of information available at the time. e) Research findings are prepared in a detailed, clear, accurate and timely format. 2. Analyse and review research findings and activities a) Research activities and outcomes are consistent with company policy and guidelines, ASX guidelines, confidentiality requirements, and with relevant legislation or industry Codes of Practice. b) Research findings and activities are analysed and reviewed to ensure accuracy and thoroughness. c) The adequacy of statutory disclosures is reviewed. d) Feedback is sought to monitor the effectiveness and appropriateness of research activities. 3. Document research and distribute to relevant parties a) All research is checked to ensure compliance with company policy and guidelines, ASX guidelines and with relevant legislation or industry Codes of Practice, and is authorised before release. b) Research is distributed to all relevant parties as required in a timely manner. c) Where relevant, confirmation of receipt of research information is obtained in order to complete company records of compliance. 24

29 FNBASX03A - CONDUCT RESEARCH TO SUPPORT RECOMMENDATIONS This Range of Variables is not exhaustive and may include other variables specific to particular industry sectors and/or to individual organisations and workplaces. Relevant sources of information Relevant sources of information may include: company reports industry and economic data specific investments types of products company visits interviews Company policy and guidelines Company policy and guidelines may include: policies and procedures in relation to client service advertising and marketing product or service development clerical information technology and administrative systems complaints and dispute resolution procedures codes of practice Relevant legislation and codes of practice Relevant legislation and codes of practice may include: ASX Business Rules SCH Business Rules National Guarantee Funds Rules Taxation Act Consumer Credit Code Privacy Act Corporations Law Relevant legislation and codes of practice (cont d) Contracts Law Trade Practices Act Trust Law Consumer Affairs Act Secrecy Laws Industry Codes of Practice 25

30 FNBASX03A - CONDUCT RESEARCH TO SUPPORT RECOMMENDATIONS Confidentiality requirements Research documentation Confidentiality requirements include any requirements under legislation such as the Consumer Affairs Act, Privacy Act, Consumer Credit Code, Industry Codes of Practice, as well as standards set out in company policies and procedures. Research documentation may include: reports (short, long, research, statistical, ad hoc, transaction, other) legal/government/professional/other documents official/general/other correspondence electronic documents (including Internet) CD ROMs presentation notes reference to all evidence/information considered reasons for adopting/incorporating certain information in preference to other information meeting notes records of telephone conversations memo s advice brochures in house publications Research documentation (cont d) prospectuses bills receipts quotations agreements contracts or policy statements Research document format and filing Research document format and filing may be: computerised electronic manual 26

31 FNBASX03A - CONDUCT RESEARCH TO SUPPORT RECOMMENDATIONS other Persons who approve/authorise research Persons who approve/authorise research may include: company directors or managers advisers auditors company accountants Relevant parties for distribution Relevant parties for distribution may include: company directors or managers advisers auditors accountants shareholders members consultants clients stockbrokers agents Relevant parties for distribution (cont d) trustees banks Stock Exchange Australian Securities and Investments Commission Taxation Office Stamp Duties Office Australian Bureau of Statistics other organisations 27

32 FNBASX03A - CONDUCT RESEARCH TO SUPPORT RECOMMENDATIONS Critical aspects of evidence will include: sound research and data analysis skills EVIDENCE GUIDE high level analysis of economic and financial statements research/data analysis experience accuracy of profit forecasts and stock recommendations knowledge of and compliance with company policies and guidelines, industry Codes of Practice and relevant legislation knowledge of the industry/area being researched Interdependent assessment of units: This unit may be assessed independently. Competency in these units should be demonstrated either prior to, or in conjunction, with assessment of the current unit. FNBFS01A Work Within a Financial Services Context FNBFS02A Communicate in the Workplace FNBFS03A Work as Part of a Team FNBFS04A Use Technology in the Workplace FNBFS05A Apply Health and Safety Practices in the Workplace FNBFS06A Resolve Customer Complaints Underpinning knowledge may include: knowledge of local and international financial markets and investments financial forecasting economic climate and outlook relevant legislation and codes of practice company policy/procedures/requirements assessment/interpretation of research data 28

33 FNBASX03A - CONDUCT RESEARCH TO SUPPORT RECOMMENDATIONS EVIDENCE GUIDE Underpinning skills to be demonstrated may include: research and data analysis techniques good communication and listening skills writing and record keeping computer literacy problem solving organisational time management Resource implications: This unit may involve simulation equipment such as telephones or computer equipment; facilities for workplace or simulated environment assessment. Consistency in performance: Competency is demonstrated by performance of all stated criteria, including the Range of Variables applicable to the particular workplace environment and should cover research of a representative range of financial products and/or services. Context for assessment: Assessment of performance requirements in this unit should be undertaken in an industry context and against industry defined assessment guidelines. Aspects of competency, including attainment of relevant knowledge and skills may be demonstrated through completion of formal training programs. Key competencies: Communicating ideas and information Collecting, analysing and organising information Planning and organising activities Working with others in a team Using mathematical ideas and techniques Solving problems Using technology

34 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS FNBASX04A Record and implement client instructions Stream Stockbroking National Code FNBASX04A Functional Area Manage Client Service Unit Description This unit describes the functions of recording and implementing client instructions regarding stock market investment. ELEMENT 1. Execute instructions to satisfy client requirements PERFORMANCE CRITERIA a) Adviser is satisfied that the client is adequately identified and that instructions given are in good faith. b) Confirmation of client of instructions and requirements is sought. c) Relevant client instructions are recorded and documented promptly and accurately in accordance with company policy and guidelines, ASX guidelines, confidentiality requirements, and with relevant legislation or industry Codes of Practice. d) Client instructions are actioned with relevant personnel/section in accordance with client requirements, company policy and guidelines, ASX guidelines, confidentiality requirements, and with relevant legislation or industry Codes of Practice. 2. Review and monitor implementation of client instructions a) Terms and conditions of agreed options and investment strategies are reviewed and monitored for consistency with client instructions. b) Implementation strategies and actions are regularly monitored and reviewed to ensure compliance with client instructions. c) Clients are regularly updated on the implementation and administration of their agreed investment strategies and instructions to ensure no breaches of agreement or anomalies occur. d) Clients are advised of changes to markets, legislative or company requirements or guidelines where appropriate. 3. Provide additional/after sales service a) Client documentation, information and histories are periodically reviewed to determine areas and extent of additional/after sales service that can be provided. b) Potential areas of additional/after sales service are communicated to clients utilising identified marketing strategies. 30

35 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS ELEMENT Provide additional/after sales service (cont d) PERFORMANCE CRITERIA c) Defined additional/after sales service is agreed with clients and provided as required. d) Areas of client dissatisfaction are identified and acted upon in a prompt, professional and ethical manner, and in accordance with company policy and guidelines, ASX guidelines, confidentiality requirements, and with relevant legislation or industry Codes of Practice. This Range of Variables is not exhaustive and may include other variables specific to particular industry sectors and/or to individual organisations and workplaces. Clients Clients may include: clients shareholders members members of the public companies and organisations stockbrokers trustees agents intermediaries Instructions in good faith Instructions in good faith may include: satisfaction by advisers that the client has been adequately identified that the person giving instructions is acting in observance of agreed terms of business that the adviser has no reason to believe such person(s) is not acting honestly and where applicable, for the benefit of the client 31

36 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS Record of client instructions Record of client instructions should include: identity of person receiving instruction or order time/date of receipt of order name of client person placing the order description and number of securities to be bought/sold price limit or price related instructions time limits on order (if any) discretionary or other relevant instructions (eg., other execution instructions, advice/no advice, settlement instructions) Instructions/orders Instructions/orders may include: market limit (price and/or time) Company policy and guidelines Company policy and guidelines may include: policies and procedures in relation to client service advertising and marketing product or service development clerical information technology and administrative systems complaints and dispute resolution procedures codes of practice 32

37 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS Relevant legislation and codes of practice Relevant legislation and codes of practice may include: ASX Business Rules SCH Business Rules National Guarantee Funds Rules Taxation Act Consumer Credit Code Privacy Act Corporations Law Contracts Law Trade Practices Act Trust Law Consumer Affairs Act Secrecy Laws Cash Transactions Reporting Act Industry Codes of Practice Confidentiality requirements Documentation Confidentiality requirements include any requirements under legislation such as the Consumer Affairs Act, Privacy Act, Consumer Credit Code, Industry Codes of Practice, as well as standards set out in company policies and procedures. Documentation may include: reference to all evidence/information considered reasons for adopting/incorporating certain information in preference to other information meeting notes adviser diary day book electronic order form electronic trade confirmation records of telephone conversations memo s 33

38 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS Documentation (cont d) program recommendations advice brochures in house publications prospectuses bills receipts quotations agreements contracts or policy statements reports (research/statistical/ad hoc/ transaction/other) legal/government/professional/other documents official/general/other correspondence Document format and filing Document format and filing may be: computerised electronic (including Electronic Trade Confirmation ETC, facsimile) manual other Anomalies Anomalies may include: lost certificate(s) delay in payment invalid scrip incorrect company incorrect class lack of SRN numbers partial delivery of stock 34

39 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS Anomalies (cont d) inconsistency in registration details inconsistencies in name of holder adviser cannot contact client estate documentation required instruction/execution disputes Additional/after sales service Additional/after sales service may include: money market facilities financial planning portfolio management/administration research corporate advice scrip lending margin lending discretionary accounts assessment of costs/liquidity/flexibility/security/potential capital growth investment spread tax factors Tax factors Tax factors may include: dividend imputation franking credits capital gains tax effective investments dividend reinvestment plans bonus plans tax effectiveness EVIDENCE GUIDE 35

40 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS Critical aspects of evidence will include: EVIDENCE GUIDE thorough knowledge and application of compliance with company policies and guidelines, industry Codes of Practice and relevant legislation consistent compliance with client instructions and investment strategies attention to detail in identifying clients/transaction summaries/documentation/day book and diary entries fraud detection and prevention procedures and practices previous history of providing financial advice or assistance level of settlement fines on sell side portfolio performances and client feedback good interpersonal and communication skills the ability to empathise and build rapport with clients by offering thorough and on-going assistance with all requests for service or advice Interdependent assessment of units: This unit may be assessed independently, however demonstration of competency in: FNCASC02A - Provide Appropriate and Timely Information and Advice to Clients may be a pre-requisite. Underpinning knowledge may include: sound knowledge of ASX and SCH Business Rules relevant legislation and codes of practice company policy/procedures/requirements product/service terms and conditions knowledge of local and international financial markets and investments fraud detection and prevention procedures and practices business principles and law basic tax factors economic climate and outlook general sales and marketing techniques 36

41 FNBASX04A - RECORD AND IMPLEMENT CLIENT INSTRUCTIONS EVIDENCE GUIDE Underpinning skills to be demonstrated may include: attention to detail telephone techniques letter/report writing and record keeping computer literacy sales and marketing techniques good communication and listening skills relationship building problem solving organisational time management Resource implications: This unit may involve simulation equipment such as office and computer equipment; facilities for workplace or simulated environment assessment may be required. Consistency in performance: Competency is demonstrated by performance of all stated criteria including the Range of Variables applicable to the particular workplace environment and should cover a representative range of investment products and/or services. Previous internal performance reviews or appraisals may also be relevant for those already in the workforce. Context for assessment: Assessment of performance requirements in this unit should be undertaken in an industry context and against industry defined assessment guidelines. Aspects of competency, including attainment of relevant knowledge and skills may be assessed in a simulated work environment or other appropriate means. Key competencies: Communicating ideas and information Collecting, analysing and organising information Planning and organising activities Working with others in a team Using mathematical ideas and techniques Solving problems Using technology

42 FNBASX05A - COMPLETE TRANSACTION PROCESSING FNBASX05A Stream National Code Functional Area Unit Description Complete transaction processing Stockbroking FNBASX05A Process Financial Transactions This unit describes the functions of processing financial transactions relating to stock market investment. ELEMENT 1. Process transactions and settlements PERFORMANCE CRITERIA a) Transactions and settlements are processed promptly and accurately in accordance with specific client instructions, company policy and guidelines, ASX guidelines, confidentiality requirements, and with relevant legislation or industry Codes of Practice. b) Written authority where necessary, is received prior to completion of processing. c) Appropriate technology, business equipment and procedures are used in transaction and settlement processing. 2. Inform adviser and/or other appropriate personnel of settlement anomalies a) Anomaly(ies), if any, are identified and recorded. b) Adviser/other appropriate personnel are identified and thoroughly briefed on all aspects of the anomaly(ies) c) Continuous liaison is maintained with the adviser/other appropriate personnel until resolution of the anomaly(ies) This Range of Variables is not exhaustive and may include other variables specific to particular industry sectors and/or to individual organisations and workplaces. Clients Clients may include: clients shareholders members members of the public companies and organisations 38

43 FNBASX05A - COMPLETE TRANSACTION PROCESSING Clients (cont d) stockbrokers trustees agents intermediaries Client instructions Client instructions may include: markets limits (price and/or time) Company policy and guidelines Company policy and guidelines may include: policies and procedures in relation to client service product or service development clerical information technology and administrative systems complaints and dispute resolution procedures codes of practice; Relevant legislation and codes of practice Relevant legislation and codes of practice may include: ASX Business Rules/Guidance Notes ASX Listing Rules SCH Business Rules ASC Policy Statements/ Practice Notes OCH Clearing Procedures National Guarantee Fund Rules SFE Articles and By-laws Taxation Act Consumer Credit Code Privacy Act 39

44 FNBASX05A - COMPLETE TRANSACTION PROCESSING Relevant legislation and codes of practice (cont d) Corporations Law Contracts Law Trade Practices Act Trust Law Consumer Affairs Act Secrecy Laws Cash Transactions Reporting Act Industry Codes of Practice Confidentiality requirements Written authority Confidentiality requirements include any requirements under legislation such as the Consumer Affairs Act, Privacy Act, Consumer Credit Code, Industry Codes of Practice, as well as standards set out in company policies and procedures. Written authority may include: payments to bank accounts bank cheques payment to term deposit facilities third parties (as determined by company policy and guidelines) sponsorship agreements Appropriate personnel Appropriate personnel may include: office managers supervisors scrip managers advisers compliance officers ASX or Stockbrokers Mutual Reference Society 40

45 FNBASX05A - COMPLETE TRANSACTION PROCESSING Recorded information Recorded information may include: reasons for adopting/incorporating certain information in preference to other information meeting notes adviser diary day book electronic order form electronic trade confirmation records of telephone conversations memos program recommendations advice bills receipts quotations agreements contracts or policy statements reports (research/statistical/ad hoc/ transaction/other) legal/government/professional/other documents official/general/other correspondence Recording format Recording format may be: computerised electronic (including facsimile) manual other 41

46 FNBASX05A - COMPLETE TRANSACTION PROCESSING Anomalies Anomalies may include: lost certificate(s) delay in payment invalid scrip incorrect company incorrect class lack of SRN numbers partial delivery of stock inconsistency in registration details inconsistencies in name of holder adviser cannot contact client estate documentation required instruction/execution disputes Critical aspects of evidence will include: EVIDENCE GUIDE thorough knowledge and application of compliance with company policies and guidelines, industry Codes of Practice and relevant legislation consistent compliance with client instructions and investment strategies attention to detail in processing financial transaction and in identifying anomalies evidence of successful resolution of previous anomalies error rates from previous settlement transactions level of outstanding transactions beyond settlement periods Interdependent assessment of units: This unit may be assessed independently. 42

47 FNBASX05A - COMPLETE TRANSACTION PROCESSING Underpinning knowledge may include: EVIDENCE GUIDE sound knowledge of ASX and SCH Business Rules, Policy Statements and Notes relevant legislation and codes of practice company policy/procedures/requirements product/ service terms and conditions basic business principles and law Underpinning skills to be demonstrated may include: attention to detail letter/report writing and record keeping computer literacy problem solving organisational liaison and team skills Resource implications: This unit may involve simulation equipment such as office and computer equipment; facilities for workplace or simulated environment assessment may be required. Consistency in performance: Competency is demonstrated by performance of all stated criteria including the Range of Variables applicable to the particular workplace environment and should cover a representative range of transactions and settlements. Context for assessment: Assessment of performance requirements in this unit should be undertaken in an industry context and against industry defined assessment guidelines. Aspects of competency, including attainment of relevant knowledge and skills may be assessed in a simulated work environment or other appropriate means. Key competencies: Communicating ideas and information Collecting, analysing and organising information Planning and organising activities Working with others in a team Using mathematical ideas and techniques Solving problems Using technology

48 FNBASX06A - IMPLEMENT AND MANAGE COMPLIANCE WITH STOCKBROKING REGULATIONS AND STANDARDS FNBASX06A Stream National Code Functional Area Unit Description Implement and manage compliance with stockbroking regulations and standards Stockbroking FNBASX06A Manage Quality Financial/Business Processes This unit describes the functions of implementing and managing compliance with stockbroking regulations and standards. ELEMENT 1. Acquire and maintain knowledge of relevant legislation, industry Codes of Practice and Standards 2. Develop and implement compliance strategies and procedures PERFORMANCE CRITERIA a) Identify and document relevant regulatory, legislative, Codes of Practice and Standards requirements to enable development of appropriate compliance strategies and procedures for Stockbroking. b) Appropriate personnel or sections are selected, appointed and resourced to develop appropriate compliance strategies and procedures and implementation timelines. a) Appropriate compliance strategies and procedures are developed in consultation will all relevant parties and stakeholders. b) Completed compliance strategies and procedures are distributed widely and written sign-off is obtained that all relevant parties have read and understood the requirements. c) Compliance strategies and procedures are implemented in accordance with ASX guidelines, relevant legislation or industry Codes of Practice, and with company policy, guidelines and within timelines. d) Appropriate operational and training procedures, policies and guidelines are established or amended where necessary and implemented. 44

49 FNBASX06A - IMPLEMENT AND MANAGE COMPLIANCE WITH STOCKBROKING REGULATIONS AND STANDARDS ELEMENT 3. Monitor and supervise compliance with appropriate regulations, legislation and Standards requirements PERFORMANCE CRITERIA a) Relevant regulatory, legislative, Codes of Practice and Standards requirements are constantly monitored and reviewed to ensure currency and consistency of strategies and procedures. b) Management is consulted and advised of recommendations for changes to compliance strategies and procedures. c) Breaches of compliance and/or non-compliance are identified, documented and reported to appropriate personnel or section and to regulatory or other authorities where necessary. d) Appropriate remedial action is taken promptly in consultation with management and in accordance with company policy and guidelines and with ASX guidelines, relevant legislation or industry Codes of Practice. This Range of Variables is not exhaustive and may include other variables specific to particular industry sectors and/or to individual organisations and workplaces. Relevant legislation, industry Codes of Practice and Standards Relevant legislation, industry Codes of Practice and Standards may include: ASX Business Rules and Guidance Notes ASX Business Rules Articles and Notes ASX Listing Rules SCH Business Rules SFE Articles and By-laws National Guarantee Funds Rules Taxation Act Consumer Credit Code Privacy Act Corporations Law Contracts Law Trade Practices Act 45