NZQA Expiring unit standard
25643 version 2
Page 1 of 4
Title
Demonstrate understanding of the stages of personal financial
advice and the products used by financial advisers
Level
5
Credits
5
Purpose
People credited with this unit standard are able to:
–
explain and evaluate the processes of personal financial
advice;
–
demonstrate understanding of the products and services
used by financial advisers; and
–
demonstrate understanding of personal tax situations and
the estate planning implications of financial solutions
provided by a financial adviser.
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.
2
References
Administration Act 1969;
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;
Family Protection Act 1955;
Financial Advisers Act 2008;
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;
KiwiSaver Act 2006;
Law Reform (Testamentary Promises) Act 1949;
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;
The Skills Organisation
SSB Code 10041
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
25643 version 2
Page 2 of 4
Property (Relationships) Act 1976;
Reserve Bank of New Zealand Act 1989;
Securities Act 1978;
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.
4
Definitions
Financial situation – incorporates variables such as a client’s balance of assets,
liabilities, incomes, risks, needs and expectations.
Financial solution – recommendations on use of particular financial products and/or
services to fit the financial strategy.
Financial strategy – broad plan that accords with client’s stated goals, needs,
priorities, financial situation and risk profile, in a particular situation.
Personal situation – incorporates variables such as a client’s personal relationships
and obligations, lifecycle stage, overall objectives, level of financial literacy.
Outcomes and evidence requirements
Outcome 1
Explain and evaluate the stages of personal financial advice.
Evidence requirements
1.1
Industry legislation, codes of practice, and organisational guidelines are
matched to the processes of personal financial advice and evaluated in terms of
relevance, intentions and consequences.
1.2
The nature of the client-adviser relationship is explained in terms of scope of
engagement, client information, and legal and ethical responsibilities.
Range
client information includes but is not limited to – personal situation,
sources of income, liquidity, liabilities and potential liabilities,
employment security, likely events and their impact, client age,
attitudes to risk, other financial products owned, insurance status,
tax status, assets.
1.3
The assessment of client financial situations is explained in terms of
clarification, analysis, need for specialist advice, and documentation.
1.4
The development of financial strategies and financial solutions for clients is
explained in terms of research, analysis, modelling, drafting, specialist advice,
recommendations, feedback and modifications, agreement, and documentation.
The Skills Organisation
SSB Code 10041
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
1.5
25643 version 2
Page 3 of 4
The implementation and monitoring of agreed financial plans is explained in
terms of mechanisms, and client agreements.
Range
mechanisms for implementation may include but are not limited to
– financial adviser, other professionals (accountants, stockbrokers,
lawyers), other third parties for implementation;
mechanisms for monitoring include but are not limited to – types of
reporting, timeframes, action points and agreements for
monitoring.
Outcome 2
Demonstrate understanding of the products and services used by financial advisers and
an individual’s life cycle.
Evidence requirements
2.1
Financial products and services commonly used by financial advisers are
identified and evaluated in terms of strengths, weaknesses, and common terms
and conditions.
Range
2.2
The expected financial needs of individuals are described in terms of an
individual’s life cycle.
Range
2.3
financial products and services include but are not limited to –
cash, fixed interest, property, shares/equities, managed
investments, insurance, retirement schemes, borrowing.
financial needs include but are not limited to – personal savings,
income protection, housing, asset protection, access health
services, retirement provision, estate planning.
The suitability of different financial products and services to the lifecycle of
individuals is evaluated with reference to benefits, risks, and common terms and
conditions.
Outcome 3
Demonstrate understanding of personal tax situations and the estate planning implications
of financial solutions.
Range
evidence of five given financial situations is required.
Evidence requirements
3.1
Personal tax situations are described in relation to given financial situations.
Range
The Skills Organisation
SSB Code 10041
personal tax situations include but are not limited to – pay as you
earn (PAYE), goods and services tax (GST), provisional tax,
income tax, resident withholding tax (RWT), non-resident
withholding tax (NRWT).
 New Zealand Qualifications Authority 2016
NZQA Expiring unit standard
3.2
25643 version 2
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Implications of given financial solutions are evaluated against common estate
planning tools and regulations.
common estate planning tools and regulations include – ownership
of assets and financial products, wills, enduring power(s) of
attorney, trusts, Administration Act 1969, Family Protection Act
1955, Law Reform (Testamentary Promises) Act 1949, Property
(Relationships) Act 1976.
Range
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
31 December 2017
Review
2
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 10041
 New Zealand Qualifications Authority 2016