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: 

Differentiate between the different asset classes and indicate how they can be used to meet customer needs 
SAQA US ID UNIT STANDARD TITLE
14535  Differentiate between the different asset classes and indicate how they can be used to meet customer needs 
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
242594  Apply knowledge of the different asset classes in order to give financial advice  Level 5  Level TBA: Pre-2009 was L5   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who are involved in the pricing of unit trusts, product development and giving information to intermediaries, financial planners and advisors.

The qualifying learner is capable of:
  • Analysing the structure of the different asset classes.
  • Applying knowledge of clients to asset classes.
  • Interpreting the risk associated with the asset classes.
  • Investigating how market conditions impact on 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 
  • Asset classes are bonds, equities, cash and property.
  • Characteristics of the bond market are Government, semi-government and corporate. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the structure of the different asset classes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The different asset classes are named and categorised in terms of short, medium and long term investments. 

    ASSESSMENT CRITERION 2 
    2. The characteristics of the bond market are analysed in terms of who issued the bond, the term and type of bond. 

    ASSESSMENT CRITERION 3 
    3. The characteristics of equities as an asset class are analysed with reference to the type of equity, sector and sub-sector. 

    ASSESSMENT CRITERION 4 
    4. The money market is analysed with reference to the instruments that make up the market. 

    ASSESSMENT CRITERION 5 
    5. Different ways of investing in property are discussed and reasons are given to explain why property is classified as equities on the Johannesburg Securities Exchange. 

    SPECIFIC OUTCOME 2 
    Apply knowledge of clients to asset classes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The asset classes that best meet a need for capital preservation are named and an indication is given of why and how these classes meet this need. 

    ASSESSMENT CRITERION 2 
    2. The asset classes that best meet a need for income generation are named and an indication is given of why and how these classes meet this need. 

    ASSESSMENT CRITERION 3 
    3. The asset classes that best meet a need for capital growth are named and an indication is given of why and how these classes meet this need. 

    ASSESSMENT CRITERION 4 
    4. A needs analysis is interpreted and the needs of a client are matched to the appropriate asset class. 

    ASSESSMENT CRITERION 5 
    5. The client's tax status is considered and an indication is given of how this will affect the choice of asset class. 

    SPECIFIC OUTCOME 3 
    Interpret the risk associated with the asset classes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of a sector specific risk is explained with reference to the equities market. 

    ASSESSMENT CRITERION 2 
    2. The concept of a market specific risk is explained with reference to the asset class. 

    ASSESSMENT CRITERION 3 
    3. Risks associated with active and passive management of an investment portfolio are analysed and an indication is given of when each style is appropriate. 

    ASSESSMENT CRITERION 4 
    4. The risk a client is prepared to take is matched to the risk associated with the different asset classes in order to recommend an investment solution for a specific client. 

    SPECIFIC OUTCOME 4 
    Investigate how market conditions impact on asset classes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Knowledge of market conditions is applied to the asset classes and an indication is given of how a change in market conditions would affect the asset class and a proposed investment strategy. 

    ASSESSMENT CRITERION 2 
    2. Relationships that exist between the asset classes are described with reference to changes in market conditions and investor behaviour. 


    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 matching a client`s needs to an asset class and market conditions. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in analysing the risks associated with the asset classes and investigating the impact of market conditions on asset classes. 

    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 relating market conditions to asset classes. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242594, which is " Apply knowledge of the different asset classes in order to give financial advice ", Level 5, 4 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.