NZQA registered unit standard
25650 version 2
Page 1 of 3
Title
Demonstrate the steps in the financial advice process relating to
client relationships and gathering information
Level
5
Credits
6
Purpose
People credited with this unit standard are able to:
–
establish and define the nature and scope of the client
and financial adviser relationship, and
–
gather client information to identify and analyse client
requirements and risk profile.
Classification
Financial Services > Financial Advice
Available grade
Achieved
Explanatory notes
1
For the purposes of authorisation of a financial adviser under the requirements of the
Financial Advisers Act, the Financial Markets Authority will only recognise
assessment conducted by The Skills Organisation through its centrally-administered
assessment system. Therefore, the only valid assessment tool for this unit standard
is an assessment administered by The Skills Organisation.
2
References
Anti-Money Laundering and Countering Financing of Terrorism Act 2009;
Consumer Guarantees Act 1993;
Fair Trading Act 1986;
Financial Advisers Act 2008;
Financial Advisers (Disclosure) Regulations 2010;
Financial Service Providers (Registration and Dispute Resolution) Act 2008;
Privacy Act 1993;
Industry codes of practice
and all subsequent amendments and replacements.
3
Definition
Aversion to or tolerance for risk – a client’s emotional or financial capacity to cope
with uncertainties in financial outcomes. Aversion or tolerance may be influenced by:
- Personal factors such as the – ability to self-insure, level of borrowing or gearing,
level and volatility of income and capital;
- Economic or market factors such as – stage of economic cycle, sector risks of
fixed interest, property, share markets;
- Financial product attributes such as – access restrictions, risk/return expectations,
product-specific risks.
4
Range
Assessments requiring application or demonstration of skills and knowledge may be
The Skills Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
25650 version 2
Page 2 of 3
performed using workplace evidence or evidence derived from simulation or scenario
based activities.
All activities must comply with legislation, regulations, and best practice, including
any guidance notes published by the agency responsible for the relevant enactment
or code.
Evidence relating to a minimum of three clients is required to cover a representative
range of needs and products.
Outcomes and evidence requirements
Outcome 1
Establish and define the nature and scope of the client and financial adviser relationship.
Evidence requirements
1.1
Explain the financial solutions offered by the financial adviser and the
responsibilities of each party.
1.2
Meet disclosure requirements and inform the client of the role of the financial
adviser.
Explain relevant fee structures, charging and remuneration methods to the
client.
1.3
1.4
Reach agreement on the scope of engagement for service.
Outcome 2
Gather client information to identify and analyse client requirements and risk profile.
Evidence requirements
2.1
Identify and document relevant information pertaining to client personal,
business and financial situation.
2.2
Identify client needs and expectations, timeframe for goals, and priorities,
including any foreseeable changes.
Range
2.3
includes – family obligations, liabilities, expectations of income,
assets;
may include but is not limited to – retirement plans, individual
investment preferences, insurance needs.
Identify and document client aversion to or tolerance for risk.
Planned review date
The Skills Organisation
SSB Code 100401
31 December 2017
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
25650 version 2
Page 3 of 3
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
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.
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