FNSASIC503UB: Provide advice in Superannuation Description This unit has been specifically designed to, when combined with industry specified units, satisfy the skills requirements of current Australian Securities and Investments Commission (ASIC) regulation (Financial Services Reform Act) at Tier 1 (Diploma) level in the Superannuation specialist and generic knowledge areas. The unit will be changed in accordance with relevant changes to the legislation. This unit is a co-requisite unit that cannot be assessed or issued without first satisfying the industry specific units identified in the Evidence Guide. Application Of Unit This unit requires the application of skills and knowledge required to provide advice in Superannuation in accordance with ASIC regulations. This unit requires the application of interpersonal skills, needs analysis, advisory and customer service skills to the provision of advice to clients. Generic knowledge requirements generic knowledge about the economic environment, the characteristics and impact of economic and business cycles, including interest rates, exchange rates, inflation, and government monetary and fiscal policies generic knowledge about the operation of financial markets, the roles played by intermediaries and issuers, structure and inter-relationships within the financial markets, and inter-relationship between industry sectors generic knowledge about financial products, including the concept of a financial product, general definition, specific inclusions and exclusions, types of financial investment products, types of financial risk products generic knowledge about the taxation issues in relation to the products and markets in which they operate generic knowledge about advisory functions, the role of the representative/adviser, participants in the advisory services market, range of services provided, profile and financial information of the client, appropriateness of a risk assessment generic knowledge about the legal environment and disclosure and compliance, the role of the representative/adviser, relevant legal principles (eg Corporations Act, Financial Services Reform Act (FSRA), Trade Practices Act etc.), the relationship between ethics and regulatory requirements (eg good faith, utmost good faith, full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser's recommendation) knowledge of relevant industry codes of practice and conduct knowledge of complaints resolution procedures (internal and external) knowledge of regulators guidelines including the requirements of ASIC policy statement 146 Course: Diploma Financial Services Financial Planning Revised 5/02/2010 Version 2 Meadowbank TAFE – NSI Share point /8/734 Section 734 Page 1 of 4 Specialist knowledge requirements Operation and management of the superannuation industry: characteristics and structure of a superannuation product roles played by intermediaries and issuers types of superannuation products fee structures/administration and management costs types of contribution annuities/pensions, allocated pensions and income stream products associated risks trustees appointment, duties and responsibilities structure of superannuation plans management and administration of superannuation products preservation rules investment strategies within superannuation funds (ie investment concepts and strategies) restrictions on investment strategies Retirement Saving Act (RSA) 1997 detailed knowledge of the SIS Act 1993 Superannuation Guarantee Act 1991, and other relevant legislation Superannuation Contribution Tax (Assessment and Collection) Act 1997 Income Tax Assessment Act 1936 Taxation: impact on investment earnings employer and employee contributions benefit payments and expenses tax deductions capital gains tax treatment roll-overs reasonable benefit limits superannuation surcharge social security pension eligibility retirement planning death benefits franking credits Legal environment - disclosure and compliance: Course: Diploma Financial Services Financial Planning Revised 5/02/2010 Version 2 Meadowbank TAFE – NSI Share point /8/734 Section 734 Page 2 of 4 the role of the representative/adviser relevant legal principles (eg SIS Act, Australian Taxation Office (ATO), Corporations Act, ASIC Act, Privacy Amendment (Private Sector) Act) the relationship between ethics and regulatory requirements (eg good faith, utmost good faith, full disclosure of remuneration/fees and any other conflicts of interest which may influence the adviser) relevant industry standards and codes of conduct regulators' guidelines including our requirements in this policy complaints resolution procedures (external and, if relevant, internal) Small funds: characteristics of Self Managed Super Funds and Small APRA Funds establishment of Self Managed Super Funds special investment rules associated risks roles played by advisers trustee appointment/duties/responsibilities fee structure/administration/management costs income streams Self Managed Super Funds relationship with ATO in specie contribution To achieve competency in this unit, a person must be able to demonstrate: range of communication and interpersonal skills to establish the knowledge level of the client knowledge of products and services available and relevant fee and charging methodologies ability to explain the role adviser ability to explain licensee/principal's responsibility for the advisers conduct ability to identify clients objectives, needs and financial situation knowledge of how to construct a risk profile for a client ability to analyse client objectives, needs, financial situation and risk profile knowledge of ASIC's identified generic and specialist knowledge requirements ability to develop appropriate strategies and solutions for clients financial needs ability to present appropriate strategies and solutions to clients ability to negotiate financial plan/policy/transaction understanding of supporting documentation and client confirmation requirements ability to coordinate the implementation of the agreed Course: Diploma Financial Services Financial Planning Revised 5/02/2010 Version 2 Meadowbank TAFE – NSI Share point /8/734 Section 734 Page 3 of 4 Evidence required for demonstration of consistent performance: Delivery/assessment relationship to other units: plan/policy/transaction ability to complete and maintain statutory and transactional documentation demonstrated knowledge of industry regulations and codes of practice, financial products and services, financial markets and characteristics, roles of other specialist providers and licensees, as well as the impacts of taxation on the client's financial requirements for the specific products offered for insurance products, competence in this unit is subject to the staff members' approval/authority to accept the transfer of risk Competency is demonstrated by performance of all stated criteria, including the Range Statement applicable to the workplace environment. Assessment should cover a representative range of clients (risk profile and needs) and products. Prerequisites for this unit have been obtained from standards within the securities industry sector, with generic advise provisions. Customisation of these units should reflect superannuation products. Industry requirements to satisfy Tier 1 requirements are as follows: FNSICCUS506B Determine client requirements and expectations FNSICADV502B Provide appropriate and timely information and advice to clients FNSICPRO502B Conduct research to support recommendations FNSICCUS507B Record and implement client instructions. Course: Diploma Financial Services Financial Planning Revised 5/02/2010 Version 2 Meadowbank TAFE – NSI Share point /8/734 Section 734 Page 4 of 4