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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain Capital Markets and Capital Market Instruments 
SAQA US ID UNIT STANDARD TITLE
243142  Explain Capital Markets and Capital Market Instruments 
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 4  NQF Level 04  2 
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
2026-06-30   2029-06-30  

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
113906  Explain Capital Markets as fixed interest bearing instruments  Level 4  NQF Level 04  2   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in a financial services environment who require a basic introduction to investments. It will add value to Trainee Financial Planners, Intermediaries, Product Developers, Coordinators of Medical Schemes, Financial Call Centre Agents and Trustees and Principal Officers of medical schemes and retirement funds. It complies with the current legislated practices in giving financial advice.

The qualifying learner is capable of:
  • Explaining why the Capital Market exists.
  • Analysing the Capital Market environment.
  • Describing the role players in the Capital Market.
  • Explaining the basic Capital Market instruments.
  • Comparing bonds with other asset classes. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
  • Lenders in the Capital Market include, but are not limited to, private investors, retirement funds, collective investment schemes and Corporates.
  • Borrowers in the Capital Market include, but are not limited to, governments, municipalities, parastatals, utilities, Corporates and banks.
  • Facilitators include, but are not limited to, the Bond Exchange, brokers and the Reserve Bank.
  • Different types of Capital Market instruments include, but are not limited to, Zero coupon bonds, fixed coupon bonds, floating rate notes.
  • Asset classes include equities, money markets and property. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain why the Capital Market exists. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of the Capital Market is explained with reference to the financing and investment needs of borrowers and lenders. 

    ASSESSMENT CRITERION 2 
    The long term nature of the Capital Market is explained with reference to risk, time horizons, inflation, nature of return and volatility. 

    SPECIFIC OUTCOME 2 
    Analyse the Capital Market environment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The economy, as the environment in which Capital Markets operate, is explained with examples. 

    ASSESSMENT CRITERION 2 
    Economic conditions are analysed in terms of the interdependence between inflation, interest rates, economic growth versus recession and exchange rates for different scenarios. 

    ASSESSMENT CRITERION 3 
    The way in which economic conditions translate into monetary and fiscal policy is explained and an indication is given of the effect on Capital Markets. 

    SPECIFIC OUTCOME 3 
    Describe the role players in the Capital Market. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The lenders in the Capital Market are identified and an indication is given of why they operate in Capital Markets. 

    ASSESSMENT CRITERION 2 
    The borrowers in the Capital Market are identified and an indication is given of why they operate in Capital Markets. 

    ASSESSMENT CRITERION 3 
    Facilitators in the Capital Market are identified and an indication is given of the role of each. 

    SPECIFIC OUTCOME 4 
    Explain the basic Capital Market instruments. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of interest bearing instruments is explained with reference to discount and yield instruments. 

    ASSESSMENT CRITERION 2 
    The concept of a bond as the basic interest bearing instrument is explained with reference to the coupon rate attached to a bond, yield as a function of coupon rate and change in capital value as a function of interest rate movement. 

    ASSESSMENT CRITERION 3 
    Different types of Capital Market instruments are compared in terms of cash flows, coupon payments and capital value. 

    SPECIFIC OUTCOME 5 
    Compare bonds with other asset classes. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The main asset classes in the financial markets are named with examples. 

    ASSESSMENT CRITERION 2 
    Bonds are compared to typical instruments in other asset classes in terms of risk, nature of return, term, liquidity and issuer. 


    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 capable of collecting, organising and critically evaluating information in comparing different types of bonds. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively in describing the bond environment, role players and Capital Market instruments. 

    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 113906, "Explain Capital Markets as fixed interest bearing instruments", level 4, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  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.
     
    NONE 


    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.