OCCUPATIONAL CERTIFICATE: INVESTMENT ADVISOR: NQF 6

OCCUPATIONAL CERTIFICATE: INVESTMENT ADVISOR: NQF 6 Credits = 213 (SAQA 105021)

Purpose statement

An Investment Adviser advises clients regarding investments to create, grow and protect wealth.

Rationale

This Qualification results from an industry process where the current unit standard-based qualifications are being re-aligned into Occupational Qualifications. The Qualification caters for building competence at Levels 5 and 6. It has four parts: enabling the development of new entrants into the occupation and then catering for further development as the employees specialise and eventually grow to become fully-fledged Financial Advisors.

The effective use of wealth creation tools to grow wealth is essential for the protection and well-being of citizens. This industry provides a necessary service in support of the development of the country and the achievement of the National Development Plan objectives. The growth of the financial services industry depends on the training and education of staff that will provide professional financial services to people across the nation. Therefore, this Qualification will support the National Plan and contribute towards job creation and social harmony; it provides the basis for entry into the industry.

Target Market

1. Persons who intend to follow a career path in a sales environment within the financial services industry.
2. Persons who have worked in the financial services industry need to gain relevant formal qualifications.

Relevance

The Qualification has relevance for learners in Retirement Funds, Investments, Insurance, Intermediaries including, but not limited to, Financial Advisors, Personal Financial Planners, Brokers, Broker Consultants, Retirement Fund Consultants, Retirement Fund Administrators, Trust Fund Officers, Product Developers, Consultants who advise on product structure of Retirement Funds, Principal Officers, Trustees, Collective Investment Scheme Managers, Account Executives and Compliance Officers.

Entry Requirements

Who is the Qualification designed for?

It is assumed that the learner registered for the Qualification has the following: NQF level 4 qualification with Communication.

Certification

Once learners meet the internal assessment requirements by skills development providers and external assessment by INSETA, the AQP, they will be certified by the QCTO once verification is completed.

The Financial Planning Institute quality assured and accredited us a RECOGNISED EDUCATION PROVIDER, which means that all our candidates will receive the RFP? (REGISTERED FINANCIAL PLANNER) status when they complete the Qualification.

Content of the Qualification

MODULE 1A:? Overview of the Investment Advisory Industry

KM1-Topic 1: Basic economic principles

KM1-Topic 2: Needs and wants of an entity.

KM1-Topic 3: Current affairs in the Financial Services Sector.

KM1-Topic 4: Changing nature of the financial services industry and its consumers.

KM1-Topic 5: Risk in a Financial Services environment.

MODULE 1B:? Regulatory Requirements for advising clients regarding insurance and investments

KM2-Topic 1: Principles of ethics.

KM2-Topic 2: FAIS (Act 37 of 2002)

KM2-Topic 3: Money laundering legislation.

KM2-Topic 4: Promotion of Access to Information Act, 2 of 2002 and the Electronic Transactions and Communications Act, 25 of 2002.

KM2-Topic 5: Protection of Personal Information Act 2020-21

MODULE 2:??? Fundamentals of Investments

Topic 1: Explain basic investment principles.

Topic 2: Demonstrate knowledge and understanding of the establishment and ongoing maintenance of a domestic collective investment portfolio.

Topic 3: Apply technical knowledge and skills to explain how collective investment scheme portfolios are classified.

Topic 4: Explain the basic principles of asset management that apply to financial markets and insurance.

Topic 5: Explain fiduciary responsibilities and the associated risks.

Topic 6: Describe the main aspects of pre- and post-retirement planning.

Topic 7: Demonstrate knowledge and insight into the Income Tax Act (58 of 1962 and the accompanying regulations) as amended as it applies to Long-Term insurance and investment products.

Topic 8: Demonstrate knowledge and insight into the Collective Investment Schemes Control Act, 45 of 2002.

Topic 9: Demonstrate knowledge and insight into provisions relating to Capital Gains Tax (CGT) contained in the Income Tax Act as it applies to insurance and investment.

Topic 10: Outline the structure of the collective investment industry.

Topic 11: Indicate how collective investment scheme portfolios are reported.

Topic 12: Explain common transactions in a collective investment scheme portfolio.

Topic 13: Describe collective investment schemes.

Topic 14: Explain how the life cycle of a business entity affects investment and insurance decisions.

MODULE 3:??? Principles of Providing Advice to Clients Regarding Investments

Topic 1: Explain Capital Markets and Capital Market Instruments.

Topic 2: Explain Equity Markets and Equity Market Instruments.

Topic 3: Explain Money Markets and Money Market Instruments.

Topic 4: Explain and apply the basic principles of the Estate Duty Act.

Topic 5: Demonstrate knowledge and insight into offshore legislation in the South African investment environment.

Topic 6: Discuss current trends in investment portfolio management.

Topic 7: Apply knowledge of investments to hedge funds

Topic 8: Apply knowledge and insight into the role of alternative investments in wealth management.

MODULE 4:??? Research, analyse and conduct due diligence on investment opportunities

Topic 1: Apply technical knowledge and insight into the sales and marketing of participatory interest in collective investment scheme portfolios.

Topic 2: Analyse the risk profile of specific investment instruments.

Topic 3: Evaluate an entity’s current and future financial position.

Topic 4: Apply knowledge of macroeconomic trends and indices to evaluate the potential effect on a selected portfolio.

MODULE 5:??? Advise clients regarding potential investment opportunities

Topic 1: Analyse and interpret qualitative and quantitative data from relevant reports to make a recommendation or inform a decision for an entity.

Topic 2: Evaluate the relevant performance of a Fund/Portfolio Manager.

Topic 3: Offer investment advice to clients based on their needs.

?MODULE 6:??? Facilitate the implementation of agreed investment decisions

Topic 1: Apply knowledge and insight to advise on the composition of a financial portfolio.

Topic 2: Apply technical knowledge and insight into managing collective investment portfolios.

Practical Workplace Integrated Assignment

Outcome

Examples of Type of Evidence Required

1. Identify and comply with all relevant regulatory requirements.
2. A list of copies of the relevant regulatory requirements applicable to your work environment
3. A summary of how each regulatory requirement has been complied with.
4. The Compliance Officer reports on how your department has complied with legislation over six months.

(All evidence must be authenticated and signed by the Mentor/Supervisor)

1. I'd like for you to conduct a client financial needs analysis by asking appropriate questions.

Please note that all the documents to be submitted on this part must be fictitious and not for real clients. This is to ensure compliance with the POPI Act.

1. A questionnaire template with questions that have been prepared for the potential client.
2. Three completed questionnaires that show any 3 clients’ financial needs.

(All evidence must be authenticated and signed by the Mentor/Supervisor)

1. Collect and capture appropriate client information in a format required for analysing it relevant to the specific product being sold.

Please note that all the documents to be submitted on this part must not be for real clients but fictitious. It is to ensure compliance with the POPI Act.

1. Three completed application forms with the client’s information. The forms must show as much information as possible and should be signed.

(All evidence must be authenticated and signed by the Mentor/ Supervisor)

2. Analyse and interpret client information to reflect the real client needs

Please note that all the documents to be submitted on this part must not be for real clients but fictitious. It is to ensure compliance with the POPI Act.

Three tables show summarised information for any 3 clients whose information has been analysed.

Three summaries of the 3 clients’ financial circumstances and risk profiles.

(All evidence must be authenticated and signed by the Mentor/ Supervisor)

Develop appropriate recommendations and communicate to clients ensuring full disclosure

Please note that all the documents to be submitted on this part must not be for real clients but fictitious. It is to ensure compliance with the POPI Act.

Five recommendations in the form of quotations to any 5 clients indicating the costs, investment periods, risk exposure and terms and conditions for the investment.

(All evidence must be authenticated and signed by the Mentor/Supervisor)

Records of advice given, instructions received, and actions taken are accurate and according to legal requirements.

Please note that all the documents to be submitted on this part must not be for real clients but for fictitious clients.

1. Five records of advice given to any 5 clients.
2. Five copies of written instructions from the 5 clients who have received the records of advice.
3. Copy the investment summary and the five clients’ terms and conditions thereof for the 5 clients. (All evidence must be authenticated and signed by the Mentor/Supervisor)
4. Review the client’s situation on an ongoing basis.

Please note that all the documents to be submitted on this part must not be for real clients but for fictitious clients.

1. Five copies of new instructions received from any 5 different clients on changes to their financial situations.
2. Five records of advice given to any 5 clients to vary all or part of their investments.
3. A written record of full disclosure to any 5 clients on the actual and potential financial implications of changing their current product portfolios.
4. Five copies of investment statements for 5 different clients, reflecting the latest transactions.

(All evidence must be authenticated and signed by the Mentor/Supervisor)

Cost:

Module 1: Overview of the Investment Advisory Industry & Regulatory Requirements for advising clients regarding insurance and investments (Compulsory) – R5 650.00

Module 2: Fundamentals of Investments – R5 650.00

Module 3: Principles of providing advice to clients regarding Investments – R5 650.00

Module 4: Research, analyse and conduct due diligence of investment opportunities – R5 650.00

Module 5: Advise clients regarding potential investment opportunities – R5 650.00

Module 6: Facilitate the implementation of agreed investment decisions – R5 650.00

Workplace Assignment: Assessment Fee: Included in the six modules

Total cost: R33 900.00 (if paid per Module)

Upfront: R32 900.00 (for full Qualification)

If a candidate completes the National Certificate in Wealth Management: NQF Level 5 at Integrity Academy, we will allow a discount of R2 500.00 on the first Compulsory Module for RPL purposes.

Cost for facilitated sessions

If we need to add facilitated sessions per Module via MSTeams/SKYPE/ZOOM, it will cost R4 750.00 per session. These sessions will last a maximum of 7 hours.

External Integrated Summative Assessment

An external Integrated Summative Assessment, conducted through the relevant Quality Council for Trades and Occupations (QCTO) Assessment Quality Partner, is required to issue this Qualification. The External Integrated Summative Assessment (EISA) will focus on the Exit Level Outcomes and Associated Assessment Criteria.?

The cost for the External Integrated Summative Assessment (EISA)

INSETA determines the price and acts as the Assessment Quality Partner (AQP) on behalf of the QCTO. Currently, it is FREE of Charge.