SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Process forward exchange contracts

SAQA US ID	UNIT STANDARD TITLE
10125	Process forward exchange contracts
ORIGINATOR
SGB Banking and Micro Finance
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority
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 3	NQF Level 03	5
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
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

Persons credited with this unit standard will be able to explain rules and regulations relating to forward exchange contracts establish the contract, source the foreign currency and then manage and close the contract.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

This unit standard should be completed subsequent to proven competence in the unit standards for purchasing and selling foreign instruments and processing inward and outward foreign documentary collections.

UNIT STANDARD RANGE

Foreign Exchange Contracts (FEC`s), futures and derivatives. Evidence of competence across the full range is required.

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Explain rules and regulations related to forward exchange contracts.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. The nature of the product is understood and explained according to the specific bank's policy and procedure.

ASSESSMENT CRITERION RANGE

Types of forward exchange contracts, the nature of the underlying transaction, how the product works, the process for payment, the parties to the transactions, rights and obligations, terms and conditions, pricing, features and benefits. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 2

2. The relevant South African legislation affecting forward exchange contracts is identified and explained in line with the intention of the legislation, and bank policy and procedure in the manner required by the bank.

ASSESSMENT CRITERION RANGE

Exchange Control regulations, Bills of Exchange Act. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 3

3. The relevant international regulations and accepted practice governing forward exchange contracts are understood and explained in the manner required by the bank.

ASSESSMENT CRITERION RANGE

International payment systems, SWIFT messages and format. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 4

4. The risks and risk management processes associated with the forward exchange contracts are understood and explained in the manner required by the bank.

ASSESSMENT CRITERION RANGE

Risks from the client's and the banks perspective, country risk, acceptable practice,payment terms, technical risks, exchange rate risk, credit risk, basic management practices associated with forward exchange contracts. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 5

5. The specific banks electronic process for processing forward exchange contracts is understood and explained in the manner required by the bank.

ASSESSMENT CRITERION RANGE

Access to the system, opening a record, printing records/ reports, making amendments, correcting mistakes, processing and capturing rules and regulations.

SPECIFIC OUTCOME 2

Establish the contract.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Details of the currency requirements are obtained from the client and recorded in the manner required by the bank.

ASSESSMENT CRITERION RANGE

Currency, amount, contract options and time period. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 2

2. Compliance with exchange control regulations and rulings is established or the necessary approval for the facility is obtained if required, according to standard policy and procedures.

ASSESSMENT CRITERION 3

3. Where necessary, credit authority is obtained and recorded according to standard policy and procedures.

ASSESSMENT CRITERION 4

4. A fixed rate for the currency/pair is determined in liaison with treasury and in the manner required by the bank.

ASSESSMENT CRITERION 5

5. The rate and the terms and condition of the contract are conveyed to the client for acceptance.

ASSESSMENT CRITERION RANGE

Details of the contract, pricing and associated charges, expiry date of contract, contract options, cancellation implications. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 6

6. The contract for the sale or purchase of currency is completed and processed according to standard procedures.

ASSESSMENT CRITERION RANGE

Client authorisation, verification of signatures, complete, accurate record of contract established. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 7

7. The fee is confirmed to the client according to standard procedures.

ASSESSMENT CRITERION 8

8. Charges are recovered according to standard procedures.

SPECIFIC OUTCOME 3

Process drawings under the contract.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Details of the drawings are obtained from the client and recorded in the manner required by the bank.

ASSESSMENT CRITERION RANGE

Currency, amount, contract options and time period. Evidence of competence across the full range is required.

ASSESSMENT CRITERION 2

2. Where necessary, settlement instructions are obtained from the client in line with standard procedures.

ASSESSMENT CRITERION 3

3. Depending on the nature of the underlying transaction, the disposal of the currency/pair is arranged in line with standard procedures.

ASSESSMENT CRITERION RANGE

Letters of credit, foreign bills for collection, foreign finance loans. Evidence across the full range is required.

ASSESSMENT CRITERION 4

4. Each drawing of currency under the contract is recorded according to standard procedures in terms of the contract and in line with exchange control requirements.

ASSESSMENT CRITERION 5

5. Early drawings/rollovers/cancellations are processed according to standard procedures.

ASSESSMENT CRITERION 6

6. Any additional charges are recovered according to standard procedures.

UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

1. Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.

2. Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.

3. Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution which is accredited by the relevant ETQA.

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE

Detailed knowledge of specific banking policy and procedures relating to the task/function performed.
Working knowledge of internal and international payment systems.
Working knowledge of internal controls.
Working knowledge of appropriate SWIFT message formats.
Working knowledge of exchange rates and treasury.
Working knowledge of relevant exchange control regulations.
Operating and computer systems knowledge sufficient to locate necessary information and complete the task.
General understanding of the specific risks, relevant policies and laws relating to foreign exchange transactions.
Working understanding of the different types of foreign finance facilities.

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING

The learner is able to understand the relationship between the forward exchange contract and exchange control regulations.

UNIT STANDARD CCFO WORKING

The learners is able to evaluate and process a forward exchange contract.

The learner is able to use technology to process the drawing documents and payments.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively when handling applicable queries.

REREGISTRATION HISTORY

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

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Elective	20184	National Certificate: Banking	Level 3	NQF Level 03	Passed the End Date - Status was "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.	Fachs Business Consulting and Training
2.	Octomate Education Pty Ltd
3.	SA RESERVE BANK
4.	SIGNA ACADEMY (PTY) LTD
5.	Trainers Without Borders