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: 

Apply basic economic principles to the financial services sector 
SAQA US ID UNIT STANDARD TITLE
230071  Apply basic economic principles to the financial services sector 
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 5  Level TBA: Pre-2009 was L5 
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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14517  Apply basic economic principles to the financial services sector  Level 5  Level TBA: Pre-2009 was L5  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard requires learners to apply basic economic principles to the financial services sector. It is intended to promote an in depth knowledge and understanding of the financial services industry in order to ensure knowledgeable and informed workers in the sector. It will be useful for Intermediaries, Product Developers, Trustees, Underwriters, and Managers in Financial Services Organisations as well as other sectors.

The qualifying learner is capable of:
  • Explaining the basic principles of economics.
  • Explaining the use of economic indicators.
  • Explaining the importance of government policies in the investment environment.
  • Applying the fundamentals of economics to the financial services environment. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication, Mathematical and Financial Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Basic economic principles and the use of economic indicators in relation to the financial services environment in general and investment in particular.
    Government initiatives include, but are not limited to, Integrated Development Planning for urban areas and Government Housing Policy. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the basic principles of economics. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The economic cycle is explained with reference to recession, depression, recovery and boom. 

    ASSESSMENT CRITERION 2 
    The concepts of demand, supply and equilibrium are explained with examples from a selected sector. 

    ASSESSMENT CRITERION 3 
    The concepts of nominal and effective/real are compared with reference to interest rates and how these affect the Gross Domestic Product (GDP). 

    SPECIFIC OUTCOME 2 
    Explain the use of economic indicators. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of inflation is explained in terms of headline inflation, core inflation, CPIX and deflation. 

    ASSESSMENT CRITERION 2 
    The concept of GDP is explained in terms of consumer expenditure, government expenditure, investment and export minus trade balance (C+I+G+(X-M). 

    ASSESSMENT CRITERION 3 
    The concept of interest rates is explained in terms of prime, money markets, repro and borrowing rates. 

    ASSESSMENT CRITERION 4 
    The concept of an economic indicator is explained and an indication is given of the relationship between inflation, GDP, interest rates, money supply, debt, currency, current account, trade account, gold, platinum and oil. 

    SPECIFIC OUTCOME 3 
    Explain the importance of government policies in the investment environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of monetary policy is explained with reference to interest rates and inflation. 

    ASSESSMENT CRITERION 2 
    The concept of fiscal policy is explained in terms of GDP components, spending and tax. 

    ASSESSMENT CRITERION 3 
    The government stance on fiscal and monetary policy is explained and an indication is given of the implications of current policies for the investment environment. 

    ASSESSMENT CRITERION 4 
    Current government initiatives that potentially impact on the economic environment are identified with examples. 

    SPECIFIC OUTCOME 4 
    Apply the fundamentals of economics to the financial services environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Market response to economic performance that is higher, lower or in line with anticipated results is explained with reference to the effect on cash, bonds, stocks and properties. 

    ASSESSMENT CRITERION 2 
    Economic indicators that affect asset classes and global geographic selection are identified and economic forecast is applied to asset classes in order to make an investment selection. 

    ASSESSMENT CRITERION 3 
    The current economic forecast is used to suggest and substantiate an asset selection proposal. 


    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 suggesting and substantiating as asset selection proposal. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in order apply economic forecast to make an investment selection. 

    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 and illustrating the concepts 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 explaining the relationship between the different economic indicators and the investment environment. 

    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 
    This unit standard replaces unit standard 14517, "Apply basic economic principles to the financial services sector", Level 5, 5 credits.

    Search words:
  • Economic principles, economics, financial services. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  61529   National Certificate: Loss Adjusting  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Fundamental  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Fundamental  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  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.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    3. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    4. Boland Public FET College - Central Office 
    5. CKP Development Agency (Pty) Ltd. 
    6. COLLEGE OF CAPE TOWN 
    7. College of Cape Town - Central Office 
    8. False Bay College 
    9. Intec College 
    10. Invuya Institute of Learning (Pty) Ltd 
    11. Masifunde Training Centre (Pty) Ltd 
    12. North Link College 
    13. Old Mutual Life Assurance Company South Africa 
    14. Ray Strodl Consulting (Pty) Ltd 
    15. Ripple Effect 4 (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. South Cape College 
    19. South Cape Public FET College - Central Office 
    20. The Institute of Health Risk Managers (Pty) Ltd 
    21. Umfolozi FET College - Central Office 
    22. Universal Healthcare Services (Pty) 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.