This unit describes the function of determining a client's financial requirements and expectations in regard to financial investment products.

This unit contains employability skills.

This unit addresses the process required to determine a client's requirements and expectations in regard to financial investment products.

This competency can be adapted to meet the specific needs of a variety of financial situations (including stock specific advice, execution/settlement only transactions and general advice etc) and products. It applies to a variety of situations including quotations, claims and requests for service or amendments.

This unit does not provide coverage of the application of the specific skills and knowledge required to recommend and provide advice on specific financial products, but rather describes the processes that should be undertaken to determine client's requirements and expectations before providing advice.

Industry Capability- Customer Relationship

1.1 Relevant facts and information are obtained courteously and professionally to determine client's situation prior to defining client's expectations, requirements and objectives

2.1 A range of communication and interpersonal skills areused to gather clients' personal, financial and business details

2.2 Clients needs are identified by encouraging expressionof their objectives and goals (short, medium and long term goals as relevant to the product)

2.4Clients expectations of cash flow and relevant taxation obligations are obtained

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q 2a

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q2a

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q 2a

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, 2aQ

1.2 Clients are encouraged to disclose relevant information to determine their personal/financial situation and special needs

2.1 A range of communication and interpersonal skills areused to gather clients' personal, financial and business details

2.2 Clients needs are identified by encouraging expressionof their objectives and goals (short, medium and long term goals as relevant to the product)

2.4Clients expectations of cash flow and relevant taxation obligations are obtained

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

1.3 Summary analysis of client's financial position is developed based on extent of client disclosure

3.1 An assessment of client needs is undertaken, utilising all information gathered and taking into account clients product expectations and specific needs

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

1.4 Client contact is categorised based on extent of client disclosure

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

1.5 Further advice is not offered or provided if client is categorised as requiring execution/settlement only action

9.1 Type and form of ongoing service including reporting on performance and review of plan/policy/transaction is agreed with the client

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

2.1 Where relevant, clientfinancial position is ascertained

2.1 A range of communication and interpersonal skills areused to gather clients' personal, financial and business details

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

2.2 Risk and fraud indicators are identified accurately and consistently

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

3.1 Client is encouraged to express and clarify their requirements and expectations

2.2 Clients needs are identified by encouraging expression of their objectives and goals (short, medium and long term goals as relevant to the product)

2.4Clients expectations of cash flow and relevant taxation obligations are obtained

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

3.2 Client concerns, if any are identified and responded to promptly and appropriately

6.1 Concerns and/or issues the client has regarding the proposed plan/policy/transaction are discussed and clarified

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

3.3 Client's investment needs and preferences with respect to financial product selection or portfolio are determined

3.1 An assessment of client needs is undertaken, utilising all information gathered and taking into account clients product expectations and specific needs

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

3.4 Specialist advice is sought where necessary or client is referred to appropriate personnel or organisation where required services are not available or cannot be provided

3.3 The need for specialist advice is analysed and/or client is referred to appropriate adviser for higher level/specialist advice if required

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

3.5 All information and facts provided by client is analysed and appropriate risk/reward and asset allocation strategy/strategies are determined in accordance with client requirements, company policies and guidelines and with relevant legislation or industry codes of practice

4.1 An appropriate strategy to provide for identified needs and outcomes is determined from analysis of products, client risk profile and assessment of clients' needs

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

4.1 All relevant client facts, financial/personal histories and completed disclosure documents are completed and filed in accordance with company policy and guidelines and relevant legislation and regulatory requirements

8.1 Proposal and all other statutory and transactional documents are completed and signed off by the client

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

4.2 Client records are created or updated where necessary

8.1 Proposal and all other statutory and transactional documents are completed and signed off by the client

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

4.3 Client documentation, information and histories are filed in a format and location readily accessible to other advisers

8.1 Proposal and all other statutory and transactional documents are completed and signed off by the client

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

good communication and listening skills

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

relationship building

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

telephone skills

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

letter writing and record keeping

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

use computers, telecommunication devices, databases, company client proformas

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

sales techniques

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

problem solving

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

organisational skills

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

time management

All 10 assignments: a00s102t11L01-10 Derivatives : Clients 1-10, Q

OR All 10 assignments: a00s102t12L01 - 10 Securities : Clients 1-10, Q

OR All 10 assignments: a00s102t09L01 - 10 Managed Investment : Clients 1-10, Q

OR All 10 assignments: a00s102t10L01 - 10 Superannuation : Clients 1-10, Q

sound knowledge of local and international financial markets and investments

A10s032t16l00: Markets And Securities Q1-15

A10s032t17l00: Buying And Selling Shares Q1-14

A20s010t04l01: Financial Institutions Q1-10

a20s010t04L02: Exchanges Q1-10

a20s010t04L03: Markets Q1-9

a20s010t04L04: Settlement And Clearing Houses Q1-11

a20s010t04L05: Electronic Systems Q1-na

a20s010t04L06: Market Makers Q1-na

A21s001t03l04: Clearing House And Open Interest Q1-10

A19s001t01l04: Options - The Players Q1-6

a20s010t04L07: Brokers And Intermediaries Q1-9

a20s010t04L08: Fund Managers Q1-10

A10s032t17l00: Buying And Selling Shares Q1-14

A19s001t01l04: Options - The Players Q1-6

A10s032t16l00: Markets And Securities Q1-15

A15s006t02l01: Range Of Securities/Futures Products Q1-10

business principles and law

A05s031t01l00: Contracts

A05s031t01l01: Contracts Q1-10

A05s031t01l02: Types Of Contracts Q1-11

A05s031t01l03: Terms Of Contracts Q1-10

A05s031t01l04: False And Misleading Information Q1-5

A05s031t01l05: Unfair Contracts Q1-8

A05s031t01l06: Broken Contracts Q1-7

A05s033t01l00: Agency

A05s033t01l01: Principal Q1-12

A05s033t01l02: Agent Q1-9

A05s033t01l03: Creating An Agency Q1-7

A05s033t01l05: Duties Of An Agent Q1-7

A05s033t01l06: Liability Of An Agent Q1-7

A05s033t01l07: Ending An Agency Q1-8

economic climate and outlook

A20s000t01l01 Economics Intro, Q1-14

A20s000t01l02 Domestic Economy, Q1-28

A20s000t01l03 The World Economy, Q1-12

A20s000t01l04 Economics At The Industry Level, Q -11

relevant legislation and codes of practice

a40s104t01L00: Compliance

a40s104t01L01: An Introduction to Compliance Q1-15

a40s104t01L02: Legislation Overview - Financial Services Reform Act 2001 Q1-20

a40s104t01L03: Legislation Overview - The Corporate Law Q1-20

a40s104t01L04: Economic Reform Program Q1-20

a40s104t01L05: The Australian Stock Exchange (ASX) Q1-20

a40s104t01L06: Regulators - ASIC Q1-20

a40s104t01L07: Regulators - APRA Q1-20

a40s104t01L08: Implementing Compliance Programs AS3806 Q1-20

a40s104t01L09: Industry Codes of Practice Q1-20

a40s104t01L10: Competency Compliance: ASICs PS146 Q1-15

a40s104t01L11: AFS Licensing Q1-20

a40s104t01L12: Disclosure Q1-20

a40s104t01L13: Conduct Q1-20

a40s104t01L14: Dispute resolution Q1-20

a40s104t01L15: Managing Conflicts of Interest Q1-20

a40s104t01L16: Financial Requirements Q1-19

a40s104t01L17: Authorised Representatives Q1-19

a40s104t01L18: Responsible officers Q1-19

a40s104t01L19: Breach Reporting Q1-20

a40S105t01L01: What is money laundering Q1-10

a40S105t01L02: Existing Laws and the need for change Q1-10

a40S105t01L03: Introduction to the new laws Q1-10

a40S105t01L04: The effect of the new laws Q1-20

a40S105t01L05: Antimoney laundering and counter terrorism financing programs Q1-20

a40S105t01L06: Application of the new laws Q1-20

a40S105t01L07: Verification of the identity of an existing customer Q1-15

a40S105t01L08: Reporting obligations Q1-20

a40S105t01L09: Reporting obligations 2 - transactions and funds transfers Q1-20

a40S105t01L10: Reporting obligations 3 - Compliance reports Q1-15

a40S105t01L11: Electronic Funds Transfer Instructions 1 - Key Concepts Q1-30

a40S105t01L12: Electronic Funds Transfer Instructions 2 - Obligations And Exceptions Q1-30

a40S105t01L13: Record-keeping Requirements Q1-30

company policy/procedures/requirements

a40S105t01L07: Verification of the identity of an existing customer Q1-15

a40S105t01L13: Record-keeping Requirements Q1-30

a40s104t01L12: Disclosure Q1-20

a40s104t01L13: Conduct Q1-20

a40s104t01L17: Authorised Representatives Q1-19

product/service terms and conditions

a15s005t01L01 Equities

a15s005t01L03 Futures

a15s005t01L04 Options On Futures

a15s005t01L05 Warrants And Other Derivatives

a15s005t01L06 Equities Markets

a15s005t01L07 Options And Derivatives Markets

a15s005t01L08 Futures Markets

a15s005t01L09 Relationships Between Markets

a15s005t01L10 Comparing Risks

general sales and marketing techniques

a40s104t01L17: Authorised Representatives Q1-19

complaints handling processes

a40s104t01L14: Dispute resolution Q1-20

Area

Training Package Specification

Gryphon Learning Implementation

To achieve competency in this unit, a person must be able to demonstrate:

• ability to develop an awareness of the clients financial situation

• the ability to obtain knowledge of the clients risk profile
• ability to determine client expectations and requirements with respect to stock or portfolio advice
• ability to prepare and update documentation where required
• the ability to empathise and build rapport with clients by offering thorough and ongoing assistance with all enquiries and requests for service
• consideration of, and adaptation to, any special needs of customers, including cultural, language, race, religion, ethnic origin, socio-economic status and demographic needs

As students use Gryphon Learning's courseware to study, they are presented with approximately 2,500 interactive questions allowing them to self-assess their knowledge and skills in this area. The results of these assessments are stored in Gryphon Learning's database, providing evidence of towards the required competencies and knowledge.

To validate this evidence, students are required to sit three supervised assessments involving assessment items drawn from those listed above. Students who have "cheated" by allowing others to study using their login would be most unlikely to satisfactorily complete the supervised tests.

Competence in this unit must be assessed over a period

of time in order to ensure consistency of performance

over the Range Statement and contexts applicable to the work environment.

As this unit is co-assessed with one of the ASIC competency units assessment is undertaken under the same conditions as for one of these units

This unit may be assessed independently.

This unit will always be co-assessed with one of the ASIC competency units

• For valid and reliable assessment of this unit, evidence

  should be gathered through a range of methods to indicate consistent performance.

• Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Assessment involves emailed essays, a range of interactive assessment items comprising both formative and summative assessment. Some of these summative assessments are supervised.

As part of the assessment, information is provided using Audio, Video, text and graphics. Student responses can involve

• Completion of simulated workplace documentation
• Completion of simulated processes
• Responses to multiple choice questions (e.g. clicking on documents to be given to clients)
• Manipulating and organising items on screen
• Responses to True/False questions
• Pointing to significant areas on charts or graphs

Assessment of performance requirements in this unit should be undertaken in an industry context and against industry defined assessment guidelines.Aspects of competency, including attainment of relevant knowledge and skills may be assessed in a simulated work environment or other appropriate means.

See assessment items and courseware listed above.

Under ASIC's Licensing rules, students who have not already demonstrated competency in this unit are not permitted to advise clients. Therefore, the assessment must involve a simulated environment.

This unit of Competency is offered as part of a course which is listed on the ASIC Training Register as Meeting the educational requirements for the minimum requirements for Advising on Derivatives.

To obtain a certificate stating students have met ASIC's requirements, students must demonstrate that they currently have these comptencies. This complicates RPL. See the discussion of RPL in the Gryphon Learning Training Strategies Manual.

This unit may involve simulation equipment such as office

or computer equipment, facilities for workplace or simulated environment assessment may be required.

To complete this unit, students need a computer with adequate internet access. For minimum specifications see the Gryphon Learning Training Strategies Manual.

Most students are currently working in the finance industry (including those employed by Gryphon Learning), and therefore have access to a range of relevant resources (including product documentation.)

Others have accessed such resources from a range of sources, including their financial advisors, by subscription, using the internet and, (under some circumstances, from Gryphon Learning.)