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: 

Research theories of behavioural economics and behavioural finance to explain the influence of emotion on financial decisions 
SAQA US ID UNIT STANDARD TITLE
242557  Research theories of behavioural economics and behavioural finance to explain the influence of emotion on financial decisions 
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 
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 introduces behavioural finance and economics as a means to explaining the role of emotions in financial decision making. It will be useful for Intermediaries, Financial Advisors, Investment Consultants, Bankers and Financial Planners.

The qualifying learner is capable of:
  • Explaining the effect of emotion on financial decisions and long term wealth accumulation.
  • Applying knowledge of behavioural finance to explain investor behaviour.
  • Discussing how behavioural economics can contribute to understanding market behaviour.
  • Analysing how financial services organisations respond to behavioural decisions on the part of the market. 

  • 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 
    The typical scope of this Unit Standard is behavioural finance and behavioural economics as a way of explaining irrational investor behaviour. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the effect of emotion on financial decisions and long term wealth accumulation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Theories of behavioural finance and behavioural economics are researched to explain investment behaviour. 

    ASSESSMENT CRITERION 2 
    Systematic biases that cause investors and the markets to behave irrationally are analysed with reference to recent events. 

    ASSESSMENT CRITERION 3 
    Standard economic theory and behavioural economic theory are compared with examples. 

    SPECIFIC OUTCOME 2 
    Apply knowledge of behavioural finance to explain investor behaviour. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Patterns or irrational investor behavior are analysed with reference to how these patterns influence decisions. 

    ASSESSMENT CRITERION 2 
    Behavioural finance theory is applied to identify and explain a client's irrational investment decision and to enable an intermediary to influence the client to make an informed decision. 

    SPECIFIC OUTCOME 3 
    Discuss how behavioural economics can contribute to understanding market behaviour. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Market behaviour is analysed with reference to volume, volatility and predictable influence on asset prices. 

    SPECIFIC OUTCOME 4 
    Analyse how financial services organisations respond to behavioural decisions on the part of the market. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Behavioural theory is applied to explain current trends in market or client behaviour. 

    ASSESSMENT CRITERION 2 
    An organisation's response to irrational decisions on the part of the market is analysed with reference to how an organisation attempted to counteract the trend. 


    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 COLLECTING 
    The learner is able to collect, organise and critically evaluate information in analysing the underlying investment options of different investment vehicles and researching behavioural finance and behavioural economics. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the role of emotions in financial decisions. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to see the world as a set of related systems in understanding the relationship between emotions, behaviour and economics. 

    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:
  • Behavioural finance
  • Behavioural economics.
  • Emotional finance. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Elective  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.