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

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who advise individuals on personal financial planning or who give advice to small and medium sized business entities. It should lead to an in depth understanding of the asset classes and will be useful for learners who give advice as part of the financial planning process, learners are involved in the pricing of unit trusts, product development and giving information to Intermediaries, Retirement fund Consultants, Financial Advisors, `Financial Planners, Broker Consultants, Bankers, Trustees and learners in collective investment managers and in financial services in general.

The qualifying learner is capable of:
  • Analysing the different asset classes and their role in a financial plan.
  • Analysing the effect of the investment environment on the asset classes.
  • Investigating how market conditions impact on asset classes.
  • Analysing the risk profile of a client in order to propose a financial solution. 

  • 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. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Asset classes include, but are not limited to, bonds, equities, cash, Money Market and property.
  • The bond market includes Government, semi-government and corporate bonds.
  • Small and medium sized business entities are defined in terms of the Income Tax Act.
  • Characteristics and risk profiles over the short, medium and long term.
  • Risks in the investment environment are upside and downside risks (benefits and potential loss) and include, but are not limited, to sector specific risk, market specific risk, geographic location and social and political risk. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the different asset classes and their role in a financial plan. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The different asset classes are analysed to determine their characteristics, risk return relationship and accessibility to the investor. 

    ASSESSMENT CRITERION 2 
    The composition of the investment portion of a financial portfolio is discussed with reference of asset classes, volatility, risk, optimal growth, expected rate of return and the balancing of the portfolio. 

    SPECIFIC OUTCOME 2 
    Analyse the effect of the investment environment on the asset classes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Risks in the investment environment are analysed with reference to the different asset classes. 

    ASSESSMENT CRITERION 2 
    Risks associated with active and passive management of an investment portfolio are analysed and an indication is given of when each style is appropriate. 

    SPECIFIC OUTCOME 3 
    Investigate how market conditions impact on asset classes. 

    ASSESSMENT CRITERIA
     

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

    SPECIFIC OUTCOME 4 
    Analyse the risk profile of a client in order to propose a financial solution. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The personal circumstances of a client are determined in terms of needs, wants, appetite for risk and lifestyle. 

    ASSESSMENT CRITERION 2 
    A client's financial situation is analysed to determine a risk profile at a specific life stage. 

    ASSESSMENT CRITERION 3 
    The risk profile of a client is matched to the appropriate asset classes. 

    ASSESSMENT CRITERION 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. 


    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 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 proposing a financial solution to a client. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems relating risk profiles and market conditions to asset classes. 

    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 14535, " Differentiate between the different asset classes and indicate how they can be used to meet customer needs ", Level 5, 4 credits.

    Search words:
  • Asset classes, asset management, financial advice, portfolio management, investment management. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  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 UNION SKILLS DEVELOPMENT PTY LTD 
    2. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Boland Public FET College - Central Office 
    4. CKP Development Agency (Pty) Ltd. 
    5. COLLEGE OF CAPE TOWN 
    6. College of Cape Town - Central Office 
    7. False Bay College 
    8. Intec College 
    9. Invuya Institute of Learning (Pty) Ltd 
    10. Masifunde Training Centre (Pty) Ltd 
    11. North Link College 
    12. Old Mutual Life Assurance Company South Africa 
    13. Ray Strodl Consulting (Pty) Ltd 
    14. Ripple Effect 4 (Pty) Ltd 
    15. Sanlam Life Insurance Ltd 
    16. Sanlam Life Insurance Ltd. 
    17. South Cape College 
    18. South Cape Public FET College - Central Office 
    19. The Institute of Health Risk Managers (Pty) Ltd 
    20. Umfolozi FET College - Central Office 
    21. 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.