31858 Assessment

Introduction

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

Unit Standard 31858 v1 – Interpret and explain provisions in the regulatory framework in a financial advice services context.

This document contains:

• Assessment Guidance
• Assessment Tasks 1-5
• 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 in your future role as a financial adviser. 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 of 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:

• Anti-Money Laundering and Countering Financing of Terrorism Act 2009;
• Code of Professional Conduct for Financial Advice Services;
• Consumer Guarantees Act 1993;
• Fair Trading Act 1986;
• Financial Markets Authority Act 2011;
• Financial Markets Conduct Act 2013;
• Financial Service Providers (Registration and Dispute Resolution) Act 2008;
• Privacy Act 2020;

and all subsequent amendments and replacements.

Definitions

• Code – Code of Professional Conduct for Financial Advice Services.
• FA – financial adviser; an individual who is registered under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 in relation to a financial advice service; but does not include a financial advice provider.
• FAP – financial advice provider; a person that provides a financial advice service.
• NR – nominated representative; an individual who is nominated by a financial advice provider under section 431T of the Financial Markets Conduct Act 2013.
• Regulatory framework – legislation, regulations, codes of conduct and/or practice as they apply to financial services and the provision of financial advice services.

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. 31858 John Smith 17 August.

Task 1 (US 31858 PC 1.1, 1.2 and 1.3)

In this task, you are required to demonstrate your knowledge of the Financial Markets Conduct Act 2013 (as amended by the Financial Services Legislation Amendment Act 2019) and disclosure and conduct obligations of financial services participants. Complete the table below.

Task 2 (US 31858 PC 1.4 and 1.5)

For each of the following participants explain their legislative duties under the Financial Markets Conduct Act 2013 (as amended by the Financial Services Legislation Amendment Act 2019), and the consequences of non-compliance. Your answer for each participant should be approximately 100 words:

• Financial Advice Provider
• Financial Adviser
• Nominated Representative.

Task 3 (US 31858 PC 2.1 and 2.2)

In this task you are required to demonstrate your knowledge of the applicability and impact of New Zealand financial services consumer legislation relevant to the provision of financial advice services.

Please complete the table below; each response should be 50-75 words (bullet points can be used). You need to provide sufficient information to demonstrate the impact of the legislation and what you do or could do to ensure you comply with your obligations.

Note: This means you need to provide specific examples of actions that you would take to meet your obligations.

Task 4 (US 31858 PC 3.1 and 3.2)

In this task, you are required to complete columns two and three in the table below to demonstrate your knowledge of the Code of Conduct for Financial Advice Services and how it applies to your role as a financial adviser or nominated representative.

Task 5 (US 31858 PC 4.1)

his task requires you to demonstrate your understanding of the roles and responsibilities of participants in complaints handling and disputes handling processes.

For each of the below participants, please outline their role and responsibility in the complaints process (referencing appropriate legislation and regulations where applicable).

Each answer should be 50-80 words.

• Financial Advisers
• Financial Advice Providers
• Consumers
• Nominated Representatives
• Internal processes
• External dispute resolution schemes
• Regulators
• Disciplinary Committee

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.

31858 Unit Standard Title

Interpret applicable provisions in the regulatory framework to use when providing financial advice services

Outcome 1: Interpret legislation and regulations applicable to financial advice and financial advice services.

1.1 Interpret terms used in financial advice legislation and regulations that apply to FAPs, FAs, and NRs.

1.2 Interpret the registration, licensing, and reporting requirements that apply to FAPs, FAs, and NRs.

1.3 Interpret disclosure and conduct obligations that apply to FAPs, FAs, and NRs.

1.4 Explain the legislative duties imposed on persons who give regulated financial advice and persons who engage others to give regulated financial advice.

1.5 Explain the consequences of non-compliance with financial advice legislation and regulations.

Outcome 2: Interpret financial services consumer legislation and financial services compliance legislation in a general financial services context.

2.1 Interpret key provisions of financial services consumer legislation in terms of how they relate to the provision of financial advice services.

Range: Includes – Financial Markets Conduct Act Part 2, Fair Trading Act, Consumer Guarantees Act, Privacy Act.

2.2 Interpret key provisions of financial services compliance legislation in terms of how they relate to the provision of financial advice services.

Range: Includes – Financial Markets Conduct Act Part 6 Subpart 5b, Anti Money Laundering and Countering Financing of Terrorism Act.

Outcome 3: Interpret the Code of Professional Conduct for Financial Advice Services.

3.1 Interpret the Code standards of ethical behaviour, conduct, and client care as they apply to FAPs, FAs, and NRs.

3.2 Interpret the Code in terms of standards of competence, knowledge, and skill; and continuing professional development as they apply to FAPs, FAs, and NRs.

Outcome 4: Recognise roles and responsibilities of participants in complaints and disputes handling processes.

4.1 Recognise participant roles and responsibilities in resolving complaints and handling disputes in accordance with financial services legislation and regulations.

Range: Participants may include but are not limited to – FAPs, FAs, NRs, consumers, internal complaints processes, dispute resolution scheme, regulators, Disciplinary Committee.