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1.
TITLE:
Apply knowledge of the different asset classes in order to give
financial advice
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UNIT STANDARD NUMBER:
242594 replaces 14535
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LEVEL ON NQF:
5
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CREDITS:
4
5.
FIELD:
Sub Field:
Business, Commerce and Management Studies
Finance, Economics and Accounting
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PURPOSE:
This Unit Standard is intended for learners who advise individuals on personal financial
planning or who give advice to small and medium sized business entities. It should lead
to an in depth understanding of the asset classes and will be useful for learners who give
advice as part of the financial planning process, learners are involved in the pricing of
unit trusts, product development and giving information to Intermediaries, Retirement
fund Consultants, Financial Advisors, `Financial Planners, Broker Consultants, Bankers,
Trustees and learners in collective investment managers and in financial services in
general.
The qualifying learner is capable of:
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9.
Analysing the different asset classes and their role in a financial plan.
Analysing the effect of the investment environment on the asset classes.
Investigating how market conditions impact on asset classes.
Analysing the risk profile of a client in order to propose a financial solution.
LEARNING ASSUMED TO BE IN PLACE:
It is assumed that learners are competent in Communication and Mathematical Literacy
at NQF Level 4.
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SPECIFIC OUTCOMES AND ASSESSMENT CRITERIA:
Specific Outcome 1:
Analyse the different asset classes and their role in a
financial plan
Assessment Criteria:
1.1
The different asset classes are analysed to determine their characteristics, risk
return relationship and accessibility to the investor
1.2
The composition of the investment portion of a financial portfolio is discussed
with reference of asset classes, volatility, risk, optimal growth, expected rate of
return and the balancing of the portfolio.
Specific Outcome 2:
Analyse the effect of the investment environment on
the asset classes
Assessment Criteria:
2.1
Risks in the investment environment are analysed with reference to the different
asset classes.
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2.2
Risks associated with active and passive management of an investment portfolio
are analysed and an indication is given of when each style is appropriate.
Specific Outcome 3:
Investigate how market conditions impact on asset
classes
Assessment Criteria:
3.1
Knowledge of market conditions is applied to the asset classes and an indication
is given of how a change in market conditions would affect the asset class and a
proposed investment strategy.
3.2
Relationships that exist between the asset classes are described with reference
to changes in market conditions and investor behaviour.
Specific Outcome 4:
Analyse the risk profile of a client in order to propose
a financial solution
Assessment Criteria:
9.
4.1
The personal circumstances of a client are determined in terms of needs, wants ,
appetite for risk and lifestyle.
4.2
A client’s financial situation is analysed to determine a risk profile at a specific life
stage.
4.3
The risk profile of a client is matched to the appropriate asset classes.
4.4
The risk a client is prepared to take is matched to the risk associated with the
different asset classes in order to recommend an investment solution for a
specific client.
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.
2. 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.
3. Moderation of assessment will be overseen by the relevant ETQA according to
the moderation guidelines and the agreed ETQA procedures.
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11.
RANGE STATEMENT:
The typical scope of this Unit Standard is:
 Asset classes include, but are not limited to, bonds, equities, cash, Money
Market and property.
 The bond market includes Government, semi-government and corporate bonds.
 Small and medium sized business entities are defined in terms of the Income Tax
Act.
 Characteristics and risk profiles over the short, medium and long term.
 Risks in the investment environment are upside and downside risks (benefits and
potential loss) and include, but are not limited, to sector specific risk, market
specific risk, geographic location and social and political risk.
NOTES:

CRITICAL CROSS FIELD and DEVELOPMENTAL OUTCOMES:
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This Unit Standard supports in particular, the following Critical Cross-field
Outcomes at NQF Level 5:
1. The learner is able to identify and solve problems in which responses show
that responsible decisions using critical thinking have been made in matching
a client’s needs to an asset class and market conditions.
2. The learner is able to collect, organise and critically evaluate information in
analysing the risks associated with the asset classes and investigating the
impact of market conditions on asset classes.
3. The learner is able to communicate effectively in proposing a financial
solution to a client.
4. The learner is able to demonstrate an understanding of the world as a set of
related systems relating risk profiles and market conditions to asset classes.
Search words: asset classes, asset management, financial advice, portfolio management,
investment management
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