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
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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
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Specialist knowledge requirements
Operation and management of the superannuation industry:
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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:
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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
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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:
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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:
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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
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Evidence required for
demonstration of
consistent performance:
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Delivery/assessment
relationship to other
units:
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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