31857 Assessment

Introduction

This assessment contains the information you need to determine competency for Core Knowledge for:

Unit Standard 31857 – Demonstrate and apply knowledge of factors in the economic environment to provide financial advice solutions.

This document contains:

• Assessment Guidance
• Assessment Tasks 1-2
• Student Declaration Form
• Assessment Decision and Schedule Form.

Assessment Guidance

The Assessment Process

To achieve the unit standard, you must complete and return to Professional IQ the following documents:

• Assessment answers for all questions or tasks
• Student declaration form completed and signed.

The assessment is competency based and focuses on the application of learning your future role as a financial advisor. The study guide provided for this unit standard contains the information necessary to develop your knowledge and understanding of the Core Knowledge module.

The qualified assessor will use their professional judgement and subject-matter expertise to evaluate your assessment ensuring that it is:

• Valid: meets the outcomes and evidence requirements of the unit standard being assessed
• Fair: a fair representation of what you can do and or know against the outcomes of the unit standard
• Authentic: it must be your own work and must not be copied from any course materials or other sources
• Sufficient: answers must be full and complete enough for the assessor to judge competency
• Consistent: answers are consistent with the assessor guidelines and national consistency requirements.

The evidence you submit must comply with any policies & procedures of your organisation, codes of practice of relevant professional bodies or any relevant legislative and regulatory requirements.

Students with Specific Needs

If you have specific learning needs, you should have informed Professional IQ of these at the time of enrolment. This enables the Academic Manager to discuss with you what appropriate support is required to complete your study and assessments.

The Assessor Role

The assessor will consider all written evidence provided by you and decide if it is competent or not yet competent.

The assessor may require you to provide more evidence on one or more questions or tasks, if in their judgement they feel the answer is insufficient or incorrect.

Where there is not enough evidence to make a decision on competency, your assessor will send you a Further Evidence Required request (FER) which means you will need to supply further information. They may contact you to have a professional conversation or to clarify a point in your answer.

The assessor will complete the Assessment Decision Form, including any feedback and return the result to you within 10 working days from receipt.

Please retain a copy of your assessment and assessment result.

The Appeals Process

An explanation of the appeals process can be found in the Student Handbook located on Professional IQ under Student Resources.

If you disagree with an assessment decision, please follow the guide and complete an Assessment Appeal Form and send it to Student Support at Professional IQ. An independent assessor will be asked to investigate the appeal.

Resources

A copy of the unit standard can be downloaded from NZQA.

It is important you fully understand the outcomes and evidence requirements of the unit standard including any special notes, references and definitions applicable. The study guide is your main resource for this assessment.

You should read the study guide for this unit standard (as part of your course work) to enable you to answer the tasks listed in this assessment document.

References

This list is provided as a guide for students who are seeking further sources of information on this module:

• Code of Professional Conduct for Financial Advice Services;
• Financial Markets Authority Act 2011;
• Financial Markets Conduct Act 2013;
• Financial Service Providers (Registration and Dispute Resolution) Act 2008;
• Financial Services Legislation Amendment Act 2019;
• Reserve Bank of New Zealand Act 1989;

and all subsequent amendments and replacements.

Student Declaration Form

Complete and attach to your assessment answers before submitting for assessment

The Tasks you submit for assessment must be your own work and cannot be completed by another person.  Initial each item on the list below to show you have read and understood the requirements of the assessment and that the submitted work is your own work, then sign the declaration.

‘Your own work’ means it cannot be copied from course materials or other text. Your answers must be in your own words.

Assessment Tasks

Answer all the following questions in the blue shaded cells and save this assessment document with a new name with the unit standard number, your name and the date e.g. 31857 John Smith 17 August.

Task 1 (US 31857 PC 1.1 and 1.2)

In this task, you need to complete the below table, demonstrating your knowledge of the economic environment, and how it impacts on market participants.

There are two parts to this task.

1a. For each of the below economic environment factors, please provide a brief description (in approximately 50 words) of what the factor is:

• Official cash rate
• Inflation rate
• Exchange rates
• National and international political and economic events
• Legislative and regulatory changes.

1b. Referencing at least two financial markets participants (including the individual and institutional participants relevant to your intended area of advice) explain how each of the factors, and changes to these factors, affect these market participants.

Your answers to this part of the task should be approximately 150 words for each factor.

Participants may include: 

• FMCA licensed participants (Including banks, non-bank deposit takers, fund managers)
• Insurance companies
• Reinsurance companies
• Trustee corporations
• Licensed supervisors
• Reserve Bank of New Zealand
• Financial Markets Authority
• AML/CFT supervisors
• Licensed and unlicensed participants
• Financial advice providers
• Financial advisers
• Nominated representatives

Task 2 (US 31857 PC 2.1 & 2.2)

There are two parts to this task. We highly recommend you complete some external reading to identify key influences related to your intended specific area of advice, and what impact these influences are currently having. The economic environment is constantly changing and, as a financial adviser, you have an obligation to be up to date with these changes and understand how they impact on your advice. The study guide has some suggested references for each strand of advice, but you are welcome to complete your own research to help you meet the requirements of this task.

2a. (US 31857 PC 2.1)

Considering your own intended area of advice specialty, identify at least 5 key factors in the economic environment that are relevant to the type of advice you provide. You may use examples from the previous task and/or provide your own examples. Note that ALL examples must be relevant to the advice strand you are enrolled in.

2b. (US 31857 PC 2.2)

For each of your five identified key factors in the previous task, analyse and explain in approximately 100 words the impact when providing financial advice solutions.

Assessment Decision Form

Core Knowledge Assessment Decision Form

The Assessment Decision Form is completed by the assessor and the results will be returned to you within 10 working days of receipt by the assessor of your assessment.

31857 Unit standard Title: Demonstrate and apply knowledge of factors in the economic environment to provide financial advice solutions

Outcome 1: Demonstrate knowledge of factors in the economic environment that impact participants in the financial services sector.

Range: Key factors may include but are not limited to – official cash rate, exchange rates, rate of inflation, economic and political events, natural disasters, legislative and regulatory changes.

1.1 Describe the key factors in the economic environment that impact participants in the financial services sector.
1.2 Explain how these factors affect participants in the financial services sector.

Outcome 2: Apply knowledge of factors in the economic environment that impact participants in the financial services sector to provide financial advice solutions.

2.1 Identify key factors in the economic environment relevant to the type of financial advice solution being provided.

2.2 Analyse the impact of key factors in the economic environment when providing financial advice solutions.