NZQA Expiring unit standard
25642 version 3
Page 1 of 3
Title
Demonstrate understanding of relationships between economic
environments, financial markets and their participants
Level
5
Credits
5
Purpose
People credited with this unit standard are able to demonstrate
understanding of:
–
the operation of financial markets; and
–
the economic environment and connection to financial
markets and their participants.
Classification
Financial Services > Financial Advice
Available grade
Achieved
Explanatory notes
1
This unit standard may be assessed on job in the workplace using naturally occurring
evidence or in off job simulated work situations designed to draw upon similar
performance to that required in work in a financial services context, or a combination
of these.
2
References
Anti-Money Laundering and Countering Financing of Terrorism Act 2009;
Commerce Act 1986;
Companies Act 1993;
Consumer Guarantees Act 1993;
Credit Contracts and Consumer Finance Act 2003;
Electronic Transactions Act 2002;
Fair Trading Act 1986;
Financial Advisers Act 2008;
Financial Markets Authority Act 2011;
Financial Reporting Act 1993;
Financial Service Providers (Registration and Dispute Resolution) Act 2008;
Financial Transactions Reporting Act 1996;
Health and Safety in Employment Act 1992;
Human Rights Act 1993;
Income Tax Act 2007;
Insurance (Prudential Supervision) Act 2010;
KiwiSaver Act 2006;
New Zealand Bill of Rights Act 1990;
NZ IFRS (New Zealand Equivalents to International Financial Reporting Standards)
available from http://www.nzica.com;
Privacy Act 1993;
Reserve Bank of New Zealand Act 1989;
Securities Act 1978;
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
25642 version 3
Page 2 of 3
Securities Markets Act 1988;
Superannuation Schemes Act 1989;
Trustee Act 1956;
industry codes of practice;
and all subsequent amendments and replacements.
3
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
Demonstrate understanding of the operation of financial markets.
Evidence requirements
1.1
Types and functions of financial markets are analysed in terms of purpose and
distinctive characteristics.
Range
1.2
Individual and institutional participants in financial markets are explained in
terms of their roles and relationships.
Range
1.3
financial markets include but are not limited to – capital markets
(stock markets, bond markets), commodity markets, money
markets, derivatives markets, futures markets, insurance markets,
foreign exchange markets.
institutional participants include but are not limited to – banks,
other deposit takers, fund managers, insurance companies,
superannuation fund managers, trustee corporations, Reserve
Bank of New Zealand, Financial Markets Authority;
roles may include but are not limited to – investors, borrowers,
issuers, financial advisers, brokers, other intermediaries.
Specific sectors of the financial services industry are explained in terms of their
purpose, structures and inter-relationships within financial markets.
Range
specific sectors include but are not limited to – banks and other
deposit takers, insurance, managed investment funds, retirement
products, trusts, foreign exchange, derivatives.
Outcome 2
Demonstrate understanding of the economic environment and connection to financial
markets and their participants.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
25642 version 3
Page 3 of 3
Evidence requirements
2.1
The nature of the economic environment is explained in terms of its
characteristics.
characteristics include but are not limited to – economic and
business cycles (international and local), interest rates, exchange
rates, inflation, government monetary and fiscal policies,
regulatory and tax regimes.
Range
2.2
Effects of changes to characteristics of the economic environment on financial
markets and their participants are explained in terms of risks, gains, and losses.
This unit standard is expiring. Assessment against the standard must take place by
the last date for assessment set out below.
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
20 February 2009
30 June 2012
Rollover and
Revision
2
21 July 2011
31 December 2017
Review
3
19 February 2015
31 December 2017
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.
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.
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016