SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Explain Capital Markets as fixed interest bearing instruments

SAQA US ID	UNIT STANDARD TITLE
113906	Explain Capital Markets as fixed interest bearing instruments
ORIGINATOR
SGB Financial Services
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-
FIELD			SUBFIELD
Field 03 - Business, Commerce and Management Studies			Finance, Economics and Accounting
ABET BAND	UNIT STANDARD TYPE	PRE-2009 NQF LEVEL	NQF LEVEL	CREDITS
Undefined	Regular	Level 4	NQF Level 04	2
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Registered"		2004-02-11	2007-02-11	SAQA 1852/04
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2008-02-11		2011-02-11

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.

This unit standard is replaced by:

US ID	Unit Standard Title	Pre-2009 NQF Level	NQF Level	Credits	Replacement Status
243142	Explain Capital Markets and Capital Market Instruments	Level 4	NQF Level 04	2

PURPOSE OF THE UNIT STANDARD

This Unit Standard is intended for learners in a financial services environment. It will add value to healthcare benefits administrators, financial planners, intermediaries financial advisers, healthcare intermediaries, product developers, co-coordinators of medical schemes, financial call centre agents and trustees of medical schemes and retirement funds. It complies with the current legislated practices in giving financial advice.

The qualifying learner is capable of:

Explaining why the Capital Market exists.

Analysing the Capital Market environment.

Describing the role players in the Capital Market.

Explaining the basic Capital Market instruments.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

There is open access to this Unit Standard. Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at Level 3.

UNIT STANDARD RANGE

Lenders in the Capital Market include, but are not limited to, private investors, retirement funds, collective investment schemes and corporates.

Borrowers in the Capital Market include, but are not limited to, governments, municipalities, parastatals, utilities, corporates and banks.

Facilitators include, but are not limited to, the Bond Exchange, brokers and the Reserve Bank.

Different types of bonds include, but are not limited to, Zero coupon bonds, fixed coupon bonds, floating rate notes.

Asset classes include equities, money markets and property.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Explain why the Capital Market exists.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The concept of the Capital Market is explained with reference to the financing and investment needs of borrowers and lenders.

ASSESSMENT CRITERION 2

2. The long term nature of the Capital Market is explained with reference to risk, time horizons, inflation, nature of return and volatility.

SPECIFIC OUTCOME 2

Analyse the Capital Market environment.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The economy as the environment in which Capital Markets operate is explained with examples.

ASSESSMENT CRITERION 2

2. Economic conditions are analysed in terms of the interdependence between inflation, interest rates, economic growth versus recession and exchange rates for two different scenarios.

ASSESSMENT CRITERION 3

3. The way in which economic conditions translate into monetary and fiscal policy is explained and an indication is given of the effect on Capital Markets.

SPECIFIC OUTCOME 3

Describe the role players in the Capital Market.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The lenders in the Capital Market are identified and an indication is given of why they operate in Capital Markets.

ASSESSMENT CRITERION 2

2. The borrowers in the Capital Market are identified and an indication is given of why they operate in Capital Markets.

ASSESSMENT CRITERION 3

3. Facilitators in the Capital Market are identified and an indication is given of the role of each.

SPECIFIC OUTCOME 4

Explain the basic Capital Market instruments.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The concept of a discount instrument is explained with examples.

ASSESSMENT CRITERION 2

2. The concept of a bond is explained as the basic Capital Market instrument with reference to the coupon rate attached to a bond, yield as a function of coupon rate and change in capital value as a function of interest rate movement.

ASSESSMENT CRITERION 3

3. Three different types of bonds are compared in terms of cash flows, coupon payments and capital value.

SPECIFIC OUTCOME 5

Compare bonds with other asset classes.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The main asset classes are named with examples.

ASSESSMENT CRITERION 2

2. Bonds are compared to typical instruments in other asset classes in terms of risk, nature of return, term, liquidity and issuer.

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.

Assessors must be registered as an Assessor with the relevant ETQA

Moderators must be registered as assessors with the relevant ETQA, or with an ETQA that has a Memorandum of Agreement with the relevant ETQA.

Training providers must be accredited by the relevant ETQA.

Moderation should include both internal and external moderation where applicable.

UNIT STANDARD DEVELOPMENTAL OUTCOME

N/A

UNIT STANDARD LINKAGES

N/A

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO COLLECTING

The learner is capable of collecting, organising and critically evaluating information in comparing different types of bonds.

UNIT STANDARD CCFO COMMUNICATING

The learner is capable of communicating effectively in describing the bond environment, role players and Capital Market instruments.

UNIT STANDARD ASSESSOR CRITERIA

N/A

UNIT STANDARD NOTES

This unit standard has been replaced by unit standard 243142, which is "Explain Capital Markets and Capital Market Instruments", level 4, 2 credits.

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Elective	48493	National Certificate: Financial Services: Wealth Management	Level 4	NQF Level 04	Passed the End Date - Status was "Registered"	2007-02-11	Was INSETA until Last Date for Achievement

PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD:

This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.

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