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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply knowledge and insight of the role of alternative investments in wealth management 
SAQA US ID UNIT STANDARD TITLE
242595  Apply knowledge and insight of the role of alternative investments in wealth management 
ORIGINATOR
SGB Insurance and Investment 
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 6  Level TBA: Pre-2009 was L6  8 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who give financial advice or engage in wealth management or financial planning. It requires an in depth knowledge of the investment environment and is applicable to Financial Planners, Broker Consultants, Fund Administrators, Financial Advisers, Fund Managers, Portfolio Managers and Emigration Consultants who require a high level of insight and give advice on investments at a high level.

The qualifying learner is capable of:
  • Demonstrating knowledge and insight into alternative investments.
  • Describing the most commonly available investment vehicles used as alternative investments.
  • Demonstrating knowledge and insight into how financial instruments can be structured to meet special needs.
  • Demonstrating knowledge and insight into the influence of world trends and market forces on alternative markets. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4 and are working towards or have a Level 5 Financial Services Qualification or equivalent. 

    UNIT STANDARD RANGE 
  • Alternative investment vehicles and markets may be domestic or international.
  • Common financial instruments include, but are not limited to, warrants, options, futures, hedge funds and mature endowments.
  • Alternative investments include, but are not limited to, hedge funds, preference shares, structured rates, Exchange Traded Funds (ETFs) and matured endowments.
  • Hedge fund styles include coverage and leverage positions, over counter or listed and the nature of the underlying investment.
  • Major elements of alternative investments include, but are not limited to, contracts, liabilities, rights, responsibilities and the services levels of the parties to the contract.
  • Structured alternative investments refer to investments on a contract basis, structured deals and unusual financial instruments. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate knowledge and insight into alternative investments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The rationale for the development of alternative investment vehicles is explained with reference to ability to access South African investment markets. 

    ASSESSMENT CRITERION 2 
    The development of alternative investments in South Africa is explained with reference to single and multiple needs. 

    ASSESSMENT CRITERION 3 
    The investor profile suited to alternative investments is explained with reference to high net worth investors. 

    ASSESSMENT CRITERION 4 
    The link between the life cycle of the individual investor and the investment vehicle is explained with reference to how asset classes may be changed within a vehicle or financial instrument. 

    ASSESSMENT CRITERION 5 
    The influence of marketing cycle on alternative investments is explained with reference to financial and other instruments. 

    ASSESSMENT CRITERION 6 
    Ways in which alternative investments differ from other asset classes are explained with reference to management strategy, absolute returns and risk return profile. 

    SPECIFIC OUTCOME 2 
    Describe the most commonly available investment vehicles used as alternative investments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of hedge funds as alternative investments is explained with reference to their purpose and wealth creation. 

    ASSESSMENT CRITERION 2 
    Different investment vehicles that can be used in a linked product are explained with reference to linkages and tax. 

    ASSESSMENT CRITERION 3 
    The use of ancillary insurance as an alternative investment is explained with reference to a specific need. 

    ASSESSMENT CRITERION 4 
    A matured endowment as an investment vehicle is explained with reference to the advantages and disadvantages for taxation. 

    ASSESSMENT CRITERION 5 
    The use of linked products is explained as a means of accessing alternative investments. 

    SPECIFIC OUTCOME 3 
    Demonstrate knowledge and insight into how financial instruments can be structured to meet special needs. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Reasons why it may be necessary to structure a specific financial instrument as an alternative investment are explained with examples. 

    ASSESSMENT CRITERION 2 
    The major elements in an alternative investment are analysed to determine the structure. 

    SPECIFIC OUTCOME 4 
    Demonstrate knowledge and insight into the influence of world trends and market forces on alternative markets. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The impact of market forces on selected alternative investment is analysed to inform a financial decision. 

    ASSESSMENT CRITERION 2 
    The impact of currency fluctuation on selected alternative investment is analysed to inform a financial decision. 

    ASSESSMENT CRITERION 3 
    The demand for alternative investments is explained with reference to the developed countries of the world. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

    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 and creative thinking have been made in explaining the investor profile suited to possible alternative investments. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining different alternative investment vehicles. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation by explaining the link between the life cycle of the investor and the investment vehicle. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Search words: alternative investments, investments, wealth management, hedge funds, warrants, options, futures, mature endowments. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  66611   National Certificate: Wealth Management  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    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.
     
    NONE 


    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.