NZQA registered unit standard
28197 version 1
Page 1 of 6
Title
Apply advice process within predetermined guidelines in banking or
insurance
Level
4
Purpose
Credits
10
This unit standard is for people working or intending to work in
a banking or insurance context who need to apply a
professional advice process within predetermined guidelines
when interacting with customers.
People credited with this unit standard are able to:
– establish relationships with customers;
– identify customer objectives, needs, and financial situation;
– analyse customer objectives, needs, financial situation, and
attitude to risk, and develop appropriate solutions to meet
customer needs;
– present strategies and solutions to the customer in a way
that the customer understands;
– agree and finalise a financial solution with the customer and
coordinate implementation of the agreed solution; and
– agree on and provide ongoing customer service.
Classification
Financial Services > Financial Advice
Available grade
Achieved
Explanatory notes
1
This unit standard has been developed for learning and assessment on-job or off-job
in a pre-employment context using a realistic simulation. Where this unit standard is
completed in a pre-employment pathway or non-customer facing role, and evidence
is provided by case study or simulation, an explanation of how or why particular
activities or steps are performed can be used to support an assessor’s judgement of
competency.
2
References
Consumer Guarantees Act 1993;
Credit Contracts and Consumer Finance Act 2003;
Fair Trading Act 1986;
Financial Transactions Reporting Act 1996;
Income Tax Act 2007;
KiwiSaver Act 2006;
Privacy Act 1993;
Securities Markets Act 1988;
Trustee Act 1956;
Trustee Amendment Act 1988;
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
28197 version 1
Page 2 of 6
industry codes of practice;
and all subsequent amendments and replacements.
3
Definition
Predetermined guidelines – guidelines developed by product providers and/or
organisations incorporating recommended usage and practice.
4
Range
a Evidence relating to a minimum of two customers is required to cover a
representative range of needs and products in the banking or the insurance sector
as appropriate to the candidate’s area of work or proposed work.
b Employed candidates are expected to be working within predetermined guidelines
and this needs to be considered in the development of strategies, which may not
be fully flexible.
c All activities must comply with any policies, procedures, and requirements of the
organisations involved; the standards of relevant professional bodies including
codes of ethics; and any relevant legislative and/or regulatory requirements.
Outcomes and Evidence Requirements
Outcome 1
Establish relationships with customers.
Evidence Requirements
1.1
Use a range of communication and interpersonal skills to establish a
relationship with the customer.
Range
includes but is not limited to – questioning and listening skills,
rapport building skills, establishing the customer’s level of financial
literacy, tailoring communication to customer’s level of financial
literacy.
1.2
Explain the range of available financial products and/or services and their
relevant fee and charging methodology.
1.3
Meet disclosure requirements and inform the customer of the role of the
adviser.
1.4
Explain complaints handling procedures and the circumstances in which those
procedures should be engaged in a way the customer understands.
Outcome 2
Identify customer objectives, needs, and financial situation.
Evidence Requirements
2.1
Identify and document relevant customer personal, financial, and business
details.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Range
2.2
28197 version 1
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information gathered from the customer may include but is not
limited to – details of liabilities and potential liabilities of the
customer; individual investment preferences and attitude to risk;
other customer details such as employment security, likely events
and their impact on the customer, age, other products they have,
insurance risk, tax, customer life stage.
Identify and document customer needs and expectations, objectives, and short,
medium, and long-term goals as relevant to the situation.
Range
may include but is not limited to – priorities, security, liquidity, the
time period the customer is planning for, debt position,
expectations of income from financial products, family income,
business needs, expectations of access to product, expectations
of product lifecycle and duration, insurance risk, tax.
Outcome 3
Analyse customer objectives, needs, financial situation, and attitude to risk, and develop
appropriate solutions to meet customer needs.
Evidence Requirements
3.1
Analyse customer priorities, objectives, needs, and financial situation utilising all
information gathered including customer product and/or service expectations
and specific needs.
3.2
Check gathered information for accuracy with customer and where appropriate
externally verify.
3.3
Assess the need for specialist advice and refer the customer to specialist
services where appropriate.
3.4
Conduct relevant research and analysis to determine possible strategies for the
customer in accordance with predetermined guidelines.
3.5
Determine appropriate strategies to provide for identified needs and outcomes
from analysis of products, customer attitudes to risk, and assessment of
customer needs, in accordance with predetermined guidelines.
Range
3.6
may include but is not limited to – priorities, security, liquidity, the
time period the customer is planning for, debt position,
expectations of income from financial products, family income,
business needs, expectations of access to product, expectations
of product lifecycle and duration, insurance risk, tax.
Draft a solution for presentation to customer.
Outcome 4
Present strategies and solutions to the customer in a way that the customer understands.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Range
28197 version 1
Page 4 of 6
presenting may include but is not limited to – addressing barriers to
understanding due to the complexity of the strategies and solutions or the
existence of any customer specific barriers (such as English as a second
language, reduced financial or general literacy, or lack of an appropriate level of
numeracy skills).
Evidence Requirements
4.1
Explain and discuss the proposed solution with the customer, in a clear and
unambiguous way, and reinforce and confirm with the customer the relevant
details of the financial product and/or service including terms and conditions.
4.2
Disclose impacts and possible risks of the solution in a clear and concise
manner that the customer understands.
4.3
Provide the customer with supporting documentation for the solution offered
and guide them through the key aspects of the documentation.
Range
documents may include but are not limited to – advice,
disclaimers, disclosures, product application forms;
documents may be delivered in electronic and/or hard copy form.
Outcome 5
Agree and finalise a financial solution with the customer and coordinate implementation of
the agreed solution.
Evidence Requirements
5.1
Discuss and address concerns and/or issues the customer has regarding the
proposed solution in a way the customer understands.
Range
concerns and/or issues may include but are not limited to – beliefs
about product performance and risk, security, fluctuations in
income and/or capital.
5.2
Gain and document the formal agreement of the customer to the proposed
solution and confirm that the customer fully understands all elements of the
proposed solution.
5.3
Clearly explain timeframes and responsibilities for execution and processing of
the solution and gain confirmation of understanding from the customer.
5.4
Ensure that all transactional and statutory documents are completed and signed
off by the customer including confirmation that the customer fully understands
all elements of the solution being implemented.
Range
The Skills Organisation
SSB Code 100401
in all cases this includes – disclosure to the customer of the terms
and conditions associated with the products and services being
implemented for the customer, including associated costs;
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
28197 version 1
Page 5 of 6
in the case of insurance this also includes – ensuring full
disclosure by the customer of all required information and
acknowledgement by the customer of their understanding of the
consequences of non-disclosure.
5.5
Distribute copies of documentation and signed agreements to all required
parties.
may include but is not limited to – the customer, product and
service providers, the candidate, internal record keeping systems.
Documents may be delivered in electronic and/or hard copy form.
Range
Outcome 6
Agree on and provide ongoing customer service.
Evidence Requirements
6.1
Agree with the customer the type and form of ongoing service, including
reporting on performance and review of solution.
6.2
Explain costs associated with ongoing and specifically defined customer service
clearly and gain confirmation of understanding from the customer.
6.3
Provide ongoing customer service as agreed with customer.
Replacement information
This unit standard replaced unit standard 24758 and unit
standard 24759.
Planned review date
31 December 2017
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
18 June 2014
N/A
Consent and Moderation Requirements (CMR) reference
0003
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
28197 version 1
Page 6 of 6
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact The Skills Organisation reviewcomments@skills.org.nz if you wish to
suggest changes to the content of this unit standard.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016