SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply technical knowledge and insight to explain the application of structured long term insurance portfolios 
SAQA US ID UNIT STANDARD TITLE
14531  Apply technical knowledge and insight to explain the application of structured long term insurance portfolios 
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 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2003-08-13  2006-08-13  SAQA 0249/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-08-13   2010-08-13  

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
242590  Apply knowledge and skill to explain the application of structured long term insurance portfolios  Level 5  Level TBA: Pre-2009 was L5   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended learners who are product developers, wealth managers, financial planners or advisors.

The qualifying learner is capable of:
  • Explaining the features of structured long term insurance portfolios.
  • Explaining how insurers construct and manage structured long term insurance portfolios.
  • Interpreting the risks associated with investment in structured long term insurance portfolios.
  • Assessing the suitability of a structured long term insurance portfolio for a specific client.
  • Interpreting the performance of a structured long term insurance portfolio in relation to other asset classes. 

  • 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 and Mathematical and Financial Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    Structured long term investment portfolios. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the features of structured long term insurance portfolios. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The vehicles through which structured long term insurance portfolios can be accessed are named with examples. 

    ASSESSMENT CRITERION 2 
    2. The term of structured long term insurance portfolios is compared to other investments. 

    ASSESSMENT CRITERION 3 
    3. The impact off different portfolios on the liquidity of a structured long term insurance portfolio is explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The nature of the investment in a structured long term insurance portfolio is analysed with reference to the asset allocation in the investor's portfolio. 

    ASSESSMENT CRITERION 5 
    5. The relationship between the returns in a structured long term insurance portfolio and the returns in the market are explained and an indication is given of why there is a difference. 

    ASSESSMENT CRITERION 6 
    6. The difference between guaranteed products and underwritten products is explained with examples. 

    ASSESSMENT CRITERION 7 
    7. Fees and charges levied on an investment are identified and calculated to determine the effect on performance. 

    ASSESSMENT CRITERION 8 
    8. The difference between surrender value and intrinsic value of an investment is explained with examples. 

    ASSESSMENT CRITERION 9 
    9. Conditions under which it is reasonable to exit a structured long term insurance portfolio are calculated and illustrated for a specific example. 

    ASSESSMENT CRITERION 10 
    10. The impact of tranche-based products is explained and an indication is given of how insurers manage tranche-based products. 

    ASSESSMENT CRITERION 11 
    11. The effect of tax is explained for three different types of investors. 

    ASSESSMENT CRITERION 12 
    12. The concept of gearing is explained as it applies to structured long term insurance portfolios. 

    SPECIFIC OUTCOME 2 
    Explain how insurers construct and manage structured long term insurance portfolios. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. An investment is analysed to determine whether it is managed actively or passively and an indication is given of how value is created within the investment. 

    ASSESSMENT CRITERION 2 
    2. The possible assets that could underlie a specific portfolio are analysed in terms of their effect on the quality of the portfolio. 

    ASSESSMENT CRITERION 3 
    3. The impact of markets on the ongoing and final performance of a structured long term insurance portfolio is explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The difference between vesting and no-vesting bonuses is explained with reference to bonus declaration. 

    SPECIFIC OUTCOME 3 
    Interpret the risks associated with investment in structured long term insurance portfolios. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Risks to which assets in a portfolio are subject are identified and quantified in terms of their effect on performance. 

    ASSESSMENT CRITERION 2 
    2. The possible risks in an investment portfolio are explained in terms of adverse tax experience and changes in legislation. 

    SPECIFIC OUTCOME 4 
    Assess suitability of a structured long term insurance portfolio investment for a specific client. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The cost of any implicit or explicit guarantees is determined for a specific product and an indication is given of the value of the guarantees to the client. 

    ASSESSMENT CRITERION 2 
    2. Ways in which a client can use this class of investment in a portfolio are explained with reference to the client's total portfolio and investment objectives. 

    ASSESSMENT CRITERION 3 
    3. The possible outcomes of a structured long term insurance portfolio investment are illustrated numerically in terms of returns. 

    SPECIFIC OUTCOME 5 
    Interpret the performance of a structured long term insurance portfolio investment. 
    OUTCOME NOTES 
    Interpret the performance of a structured long term insurance portfolio investment in relation to other classes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Two structured long term insurance portfolio competitive products are compared and evaluated in terms of features and risk. 

    ASSESSMENT CRITERION 2 
    2. A structured long term insurance portfolio investment is evaluated against an alternative traditional investment product. 

    ASSESSMENT CRITERION 3 
    3. The current performance of a structured long term insurance portfolio investment is calculated and communicated to a client. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA (INSQA framework for assessment and moderation). 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in indicating conditions under which it is reasonable to exit a structured long term insurance portfolio investment. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information analysing the underlying assets of a fund and the way in which it is managed. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the concepts contained in the Unit Standard. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems in relating risks to adverse tax experience and legislation. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242590, which is " Apply knowledge and skill to explain the application of structured long term insurance portfolios ", Level 5, 6 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2006-08-13  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.
     
    1. Sanlam Life Insurance Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.