FNSFPL607 — Prepare advice in margin lending

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What an assessment for FNSFPL607 must cover

82 assessable components: 5 elements (22 performance criteria), 4 performance evidence and 47 knowledge evidence requirements, plus 9 foundation skills. An audit-defensible tool maps every question and task back to these — that mapping is the coverage matrix Auditori generates alongside the assessment.

Elements & performance criteria

1 Analyse client needs and risk profile

1.1Analyse client needs using all information gathered and considering client’s product expectations
1.2Consult with authorised representative throughout analysis for further clarification where necessary according to organisational procedures
1.3Identify need for specialist advice and ensure client is referred to appropriate adviser if required
1.4Assess and confirm client’s product risk profile according to expectations of cashflow and relevant taxation obligations

2 Develop margin lending strategies and solutions that meet client needs and risk profile

2.1Identify legislative, regulatory and code of practice requirements relevant to products being offered
2.2Determine required margin lending strategy based on analysis of margin lending products, client risk profile, and analysis of client needs
2.3Conduct required research, analysis and product modelling and apply stress tests for changes in market conditions

3 Provide strategies and solutions to authorised representative

3.1Draft required solution, plan, policy or transaction and provide to authorised representative
3.2Explain proposed solution, plan, policy or transaction to authorised representative
3.3Confirm required details, terms and conditions of product or service
3.4Disclose impacts and possible risks of proposed solution, plan, policy or transaction and offer alternative solutions to authorised representative
3.5Provide supporting written documentation and guide authorised representative through key aspects of documentation
3.6Discuss and clarify concerns and issues regarding proposed solution, plan, policy or transaction with authorised representative
3.7Confirm with authorised representative client’s understanding of proposed solution, plan, policy or transaction

4 Establish agreement and complete documentation process

4.1Obtain formal agreement from authorised representative and obtain their sign-off on proposed solution, plan, policy or transaction
4.2Document fees, cost structures and timeframes for execution and processing of agreed solution, plan, policy or transaction
4.3Ensure proposal and required statutory and transactional documents are completed and signed off by client
4.4Provide draft agreement and other required documentation to authorised representative

5 Agree to arrangements for providing ongoing services

5.1Prepare documentation of fees and costs for ongoing and specifically defined services according to organisational policies and procedures
5.2Agree to type and form of ongoing service to be provided
5.3Provide documented service arrangements to authorised representative for confirmation
5.4Implement procedures for agreed ongoing service according to organisational policies and procedures

Performance evidence

prepare accurate and ethical advice on margin lending for financial plans for at least two different clients.
analyse client needs, financial situation and risk profile, and prepare appropriate strategies and solutions relating to margin lending
document recommendations on margin lending products and services
prepare policy or transaction once agreed by the client and complete documentation.

Knowledge evidence

Generic knowledge
economic environment, including:
characteristics and impact of economic and business cycles
interest rates and exchange rates
inflation
government monetary and fiscal policy
operation of financial markets, including:
roles played by intermediaries and issuers
structure and interrelationships within financial markets
interrelationship between industry sectors
financial products, including:
concept of a financial product: general definition, and specific inclusions and exclusions
types of financial investment products
types of financial risk products
aspects of ongoing service provision, including:
reporting on performance
communicating comprehensively and clearly
reviewing of solution, plan, policy or transaction.
Specialist knowledge
legal environment, including disclosure and compliance covering:
role of the authorised representative or adviser
relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Privacy Amendment (Private Sector) Act, and Competition and Consumer Act
relationship between ethics and regulatory requirements, including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and other conflicts of interest that may influence authorised representative’s recommendation
relevant industry standards and codes of practice
regulatory guidelines
internal and external complaints resolution procedures
characteristics of margin lending products, including:
various types of margin lending facility products and their operation, including standard margin lending facilities and non-standard margin lending facilities
associated risks and alternative products, including derivatives where relevant
provider and client rights and responsibilities
effect of provider taking security over client assets
effect of provider receiving a transfer of client assets
calculating loan-to-value ratios of both individual products and the overall portfolio
consequences of issuers altering the loan-to-value ratio of individual products
margin calls: ways of making a margin call, consequences of margin calls and how they may be resolved, and strategies by which the borrower may avoid margin calls
approved product list: consequences of removing a product from the approved products list
taxation issues in relation to margin lending facilities, including:
deductibility of costs associated with margin lending, including interest payments
liability for capital gains tax (CGT)
theories of investment, portfolio management and management of investment and risk, including:
investment concepts
investment strategies for margin lending, including role of cash flow and alternative investment strategies
investment options using a margin lending facility
identification of types of risk, including sensitivity of margin lending strategies to changes in interest rates and investment returns
client risk profile, including source and stability of clients’ income source, the source of funding for the investment and risk profiles unsuited to margin lending facility products
stress testing of proposed client portfolio
risks associated with gearing, including relationship between levels of gearing and risks, and risks associated with double gearing.

Foundation skills

Learning: Extends knowledge of product features and applications relevant to current role using research and analysis
Numeracy: Interprets financial product information and calculates client costs, risks and returns
Oral communication: Articulates requirements using industry-specific language appropriate to audience and environment, and participates in negotiated outcomes Uses active listening and questioning techniques to confirm understanding and elicit information
Reading: Interprets textual information from relevant sources
Writing: Uses clear, specific and industry-related terminology to complete and consolidate workplace documentation
Planning and organising: Takes responsibility for the planning, sequence and priority of tasks within own workload to achieve effective and compliant outcomes Applies systematic and analytical decision-making processes to determine and implement solutions that meet client needs and financial requirements
Self-management: Takes personal responsibility for following policies, procedures and protocols to provide advisory services and documentation that complies with legal, ethical and organisational requirements
Teamwork: Selects and uses appropriate conventions and protocols when communicating with authorised representatives Seeks and shares information, establishes agreements and maintains ethical service relationships Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others
Technology: Uses the main features and functions of digital tools to complete work tasks

Unit content sourced from training.gov.au — © Commonwealth of Australia, licensed under CC BY 4.0. Auditori is not affiliated with the Department of Employment and Workplace Relations.

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Questions about assessing FNSFPL607

What does an assessment tool for FNSFPL607 need to cover?

To satisfy the Principles of Assessment and Rules of Evidence, an assessment for FNSFPL607 needs to address all 82 unit components: 5 elements with 22 performance criteria, 4 performance evidence requirements, 47 knowledge evidence requirements, and the foundation skills. A coverage matrix mapping each question and task to these components is what an auditor looks for.

How does Auditori generate an assessment tool for FNSFPL607?

Auditori pulls the current release of FNSFPL607 from training.gov.au and generates a complete package: candidate assessment, assessor guide with model answers and observation criteria, and a coverage matrix mapping every component. A suitably qualified person then reviews and approves the draft in a built-in workflow — consistent with ASQA's guidance on AI use in VET — before export as branded PDF and editable Word.

Is the first assessment tool really free?

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Can I check my existing FNSFPL607 assessment instead of generating a new one?

Yes — upload your existing assessment or learner guide and Auditori maps it against every element, performance criterion, PE and KE of FNSFPL607, showing exactly what's covered and what's missing. Mapping costs a quarter of a credit.

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