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: 

Demonstrate an understanding of the use of micro- and macro-economic indicators as forecasting and planning tools within the financial markets 
SAQA US ID UNIT STANDARD TITLE
12892  Demonstrate an understanding of the use of micro- and macro-economic indicators as forecasting and planning tools within the financial markets 
ORIGINATOR
SGB HET Accountancy and Financial Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
FASSET - Financial and Accounting Services SETA 
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 7  Level TBA: Pre-2009 was L7  18 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 people who work or intend to work in the Financial Markets sector.

Persons credited with this Unit Standard are able to apply the fundamentals of economic analysis to the Financial Markets sector for the purposes of forecasting and planning. This should lead to more effective employees in the sector. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that a learner attempting this Unit Standard has achieved competence against Unit standard:

" Demonstrate an understanding of the functioning of the international financial markets within the South African context" 

UNIT STANDARD RANGE 
"Different economic systems" include:
  • Capitalism
  • Communism
  • Socialism
  • Free market
  • Mixed

    "Key indicators of economic performance" include:
  • Gross Domestic Product
  • Employment and Unemployment
  • Consumer price index and inflation
  • Balance of Payments
  • Interest rates
  • The distribution of income
  • Government borrowing
  • Money supply
  • Exchange rates

    "The major players in an economy" include:
  • Firms
  • Households
  • The Government
  • The Foreign Sector
  • Financial Institutions

    "International and domestic influences impacting on the Financial Markets" include:
  • Supranational institutions such as the IMF, BIS and EU
  • Local and regional political, economic, social, technological, legal or environmental factors

    "The Financial Markets Instruments" include:
  • Equity instruments such as Preference Shares and Ordinary Shares
  • Long term Debt instruments such as Bonds
  • Derivative products such as Futures and Options in currency, interest rates, bond and equity markets.
  • Currency instruments such as FRA's (Future rate Agreements), Repos and Swaps
  • Money Market products such as Treasury Bills, Certificates of Deposit, Bills of Exchange, Banker's acceptances
  • Commodities
  • Warrants
  • Convertibles 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate an understanding of the relationship of economics to the financial market 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Different economic systems are identified, explained and compared graphically. 

    ASSESSMENT CRITERION 2 
    2. The roles and inter-dependence of the major players in the South African economy are described with examples. 

    ASSESSMENT CRITERION 3 
    3. Types of business enterprise are described with examples. 

    ASSESSMENT CRITERION 4 
    4. International financial systems are explained and compared graphically. 

    SPECIFIC OUTCOME 2 
    Apply macro-economic principles to the financial market sector 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The performance of the South African economy is evaluated against comparative global benchmarks using key indicators. 

    ASSESSMENT CRITERION 2 
    2. Current international, regional and domestic influences impacting on the Financial Markets are described and rated in order of importance with reasons for their relative positions. 

    ASSESSMENT CRITERION 3 
    3. The positive and negative effects of economic, financial and political influences on the Financial Market are explained with examples from the media over the preceding three months. 

    SPECIFIC OUTCOME 3 
    Apply micro-economic principles to the financial market sector 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The relationship between the current economic situation and financial behaviour is expressed with examples. 

    ASSESSMENT CRITERION 2 
    2. The impact of perfect and imperfect market theories are applied to the Financial Market instruments and comparisons given. 

    SPECIFIC OUTCOME 4 
    Compare the performance of specified financial market instruments to forecasts made 
    OUTCOME NOTES 
    Compare the performance of specified financial market instruments to forecasts made using economic analysis. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The performance of specified Financial Market instruments is predicted using economic analysis. 

    ASSESSMENT CRITERION 2 
    2. The actual performance of the instrument is measured and compared to the predicted performance. 

    ASSESSMENT CRITERION 3 
    3. The correlation between the predicted and actual performance is evaluated and reasons given for any variances or why there was no variance. 

    SPECIFIC OUTCOME 5 
    Describe the value of using economic indicators as a planning tool in the financial market sector 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The relationship between economic indicators and the Financial Market is described with examples. 

    ASSESSMENT CRITERION 2 
    2. The current situation is evaluated in terms of economic indicators. 

    ASSESSMENT CRITERION 3 
    3. The value of applying economic indicators to the Financial Market is elaborated with examples. 

    SPECIFIC OUTCOME 6 
    Draw up an economic forecast using spreadsheet modelling techniques 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Historical financial information is collected and considered and a summary made of the trends that have occurred over the last five years. 

    ASSESSMENT CRITERION 2 
    2. Assumptions are stated based on historical trends. 

    ASSESSMENT CRITERION 3 
    3. Appropriate financial ratios are utilised and probability theory is applied to make the assumptions which are justified in terms of historical trends and existing factors. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation and moderation:

    Accreditation for this Unit Standards shall be from the FASSET Education and Training Quality Assuror through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.
  • Assessors must be registered as an Assessor with the FASSET ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA
  • Moderators must be registered as assessors with the FASSET ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA
  • Training providers must be accredited by the Fasset ETQA or with an ETQA that has a Memorandum of Understanding with the FASSET ETQA
  • Moderation should include both internal and external moderation where applicable
  • The Fasset ETQA will co-ordinate all moderation activities in accordance with its policies and procedures 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    A demonstrated understanding of:
  • The terminology relating to the Financial Markets and instruments.
  • Terminology specific to and in the context of the study of economics, eg supply, demand, macro-economics, micro-economics, market system, opportunity cost, model, efficiency, factors of production, production, expenditure, sectors, national, domestic, regional, utility, goods, services, inflation, unemployment, value, surplus, competition, equilibrium, urbanization, first-world, third-world, formal sector, informal sector, balance of payments, trade policy, the state, entrepreneurship, trade unions, taxation, capital, the labour market, the monetary sector, the public sector, the foreign sector. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems using critical and creative thinking processes. For example data need to be analysed and evaluated in order to understand the economic dynamics at play at any point in time. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information. For example economically relevant information is available from a multitude of sources, eg newspapers, periodicals, and the learner should habitually scan these sources of information and process data to construct meaningful relationships to financial markets data. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and/or language skills in the modes of oral and / or written persuasion. For example information may need to be communicated to others verbally, in reports or electronically so that it may be used within the financial markets sector. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically, showing responsibility towards the environment and health of others. Data may need to be analysed or modelled using computer spreadsheets. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of interrelated systems by recognizing that problem-solving contexts do not exist in isolation. For example, in economics one learns that economic factors do impact on other factors, and the nature of these effects should be studied in order to view things from the larger perspective. 

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

    UNIT STANDARD NOTES 
    Terminology:

    Terminology relating to the Financial Markets can be found in "Who owns Whom's Dictionary of Stock Market Terms" published by Who owns Whom / PSG Online in 2001. ISBN 1-919850-04-X


    Values:

    The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds proscribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23653   National Diploma: Financial Markets  Level 6  NQF Level 06  Reregistered  2023-06-30  FASSET 
    Fundamental  63711   Bachelor of Geographical Information Science (GISc)  Level 7  NQF Level 07  Passed the End Date -
    Status was "Reregistered" 
    2018-06-30   
    Elective  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 


    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. DC Dali Debt Counsellors 
    2. Felix Risk Training Consultants 
    3. Full Value Financial Services (Pty) Ltd 
    4. RMK Industries(Pty) LTD 
    5. The Academy of Financial Markets 
    6. The Facilitation Workshop 



    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.