1.
TITLE:
Apply insight into the implications of changing financial priorities
and attitudes on the value proposition in a financial relationship
____________________________________________________________________________
2.
UNIT STANDARD NUMBER:
242569
3.
LEVEL ON NQF:
5
4.
CREDITS:
3
5.
FIELD:
Sub Field:
Business, Commerce and Management Studies
Finance, Economics and Accounting
6.
PURPOSE:
This Unit Standard is intended for Intermediaries and Financial Planners who need to
understand the needs of clients and how these change over time. Knowledge of
changing priorities and values will enable the Intermediary to provide competitive
services for a market related fee or commission. It will be useful for Broker Consultants,
Account Executives and Bankers.
The qualifying learner is capable of:
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7.
Researching changes in attitudes and values and the impact on lifestyle of
financial services clients.
Examining existing service offerings and their appropriateness for different
clients.
Discussing the implications of a market related fee for financial advice.
Applying knowledge of Return on Investment Theory (ROI) to a financial service
practice.
Discussing the implications of a fee in relation to the services offered by the
product
LEARNING ASSUMED TO BE IN PLACE:
It is assumed that learners are competent in Communication and Mathematical Literacy
at NQF Level 4.
8.
SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA:
Specific Outcome 1:
Research changes in attitudes and values and the
impact on lifestyle of financial services clients
Assessment Criteria:
1.1
Attitudes and values in different Generations are researched with reference to
attitudes to lifestyle and finance.
1.2
Difference in attitudes and values within a selected Generation are researched
with reference to stages in lifestyle and attitudes to financial planning.
1.3
The implications of different attitudes and values for client relationship and
financial planning are explored with reference to service offerings and the impact
of technology.
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Specific Outcome 2:
Examine existing service offerings
appropriateness for different clients
and
their
Assessment Criteria:
2.1
Existing service offerings are analysed and compared to the values and attitudes
of prospective clients.
2.2
The relationship with a client is defined and a service level agreement is
negotiated to meet specific expectations.
2.3
The advantages of networking and access to professional alliances are
discussed in terms of offering an holistic service to a client.
Specific Outcome 3:
Discuss implications of a market related fee for
financial advice
Assessment Criteria:
3.1
The implications of offering a professional financial service are researched with
reference to qualifications, lifelong learning, code of conduct and licensing.
3.2
Issues of payment of a professional fee and/or commission are discussed with
reference to different service level agreements and rules of relevant professional
bodies, where applicable.
3.3
Methods to quantify a professional fee are debated for different levels of advice.
3.4
The implications of fee based remuneration as opposed to commission based
remuneration are discussed with reference to service level agreements.
Specific Outcome 4:
Apply knowledge of Return on Investment (ROI) theory
to a financial services practice
Assessment Criteria
4.1
ROI theory is applied to decide on whether the time and effort required to service
a specific client is financially viable for the intermediary and the client.
4.2
Infrastructure and equipment required for different levels of service are
investigated in terms of potential ROI.
Specific Outcome 5:
Discuss the implications of a fee in relation to the
services offered by the product
Assessment Criteria
9.
5.1
Different types of fee for a selected financial service are analysed to determine
the value each adds.
5.2
Upfront fees of different financial services products are compared to determine
the differences in value provided by each product.
5.3
A product appropriate to a specific client’s needs is selected taking into account
services linked to the product.
ACCREDITATION AND MODERATION:
1.
Anyone assessing a candidate against this Unit Standard must be registered
as an assessor with the relevant ETQA or ETQA where a Memorandum of
Understanding (MOU) exists with the relevant ETQA.
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2.
3.
Any institution offering learning that will enable achievement of this Unit
Standard must be accredited as a provider through the relevant ETQA or
ETQA where a Memorandum of Understanding (MOU) exists with the relevant
ETQA.
Moderation of assessment will be overseen by the relevant ETQA according to
the moderation guidelines and the agreed ETQA procedures.
10.
RANGE STATEMENT:
The typical scope of this Unit Standard is:
 Attitudes and values across Generations and within stages in the lifecycle.
 Classifications of Generations could include, but are not limited to, Traditionalists,
Boomers, Xérs (Yiffies), Millenium or Zuma, Luthuli, Liberation and Freedom.
 Service level agreements may be negotiated as fees or commission.
11.
NOTES:

CRITICAL CROSS FIELD and DEVELOPMENTAL OUTCOMES:
This Unit Standard supports in particular, the following Critical Cross-field
Outcomes at Unit Standard level:
1. The learner is able to identify and solve problems in which responses show
that responsible decisions using critical and creative thinking have been
made I applying ROI theory to determine whether a required service level s
financially viable.
2. The learner is able to work effectively with others as a member of a team,
group or organisation by understanding the importance of professional
alliances.
3. The learner is able to organise and manage him/herself and his/her activities
responsibly and effectively in applying theories of ROI to a value proposition.
4. The learner is able to collect, organise and critically evaluate information in
deciding whether a client and value proposition are financially viable.
5. The learner is able to communicate effectively in discussing the implications
of a market related fee for financial advice.
6. The learner is able to understand the potential use of technology and the
implications for client relations.
7. The learner is able to demonstrate an understanding of the world as a set of
related systems by researching the relationship between Generation, stage in
lifecycle, attitudes and values a d service levels.
8. The learner is able to be culturally sensitive across a range of social contexts
in dealing with generation differences and negotiating service level
agreements.
Search words: commission; fees; value propositions; service offerings; client relationship;
managing service level agreements; professionalism, alliances.
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