HSC Financial Services (VET) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

PCBU

Person Conducting a Business or Undertaking. Under WHS law a PCBU owes the primary duty to ensure health and safety of workers and others so far as is reasonably practicable.

Duty of worker

A worker must take reasonable care for their own health and safety, take reasonable care that acts or omissions do not harm others, and comply with reasonable safety instructions.

Australian Privacy Principle 1

Requires an APP entity to have a clearly expressed and up-to-date privacy policy about how it manages personal information, and to make it available free of charge on request.

Sensitive information

Personal information such as health, racial or ethnic origin, political opinions, religious beliefs, sexual orientation or biometric data, which attracts higher privacy protections and requires consent.

AML/CTF Act

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 requires reporting entities to identify customers, monitor transactions and report suspicious matters and threshold transactions to AUSTRAC.

Suspicious matter report

A report to AUSTRAC about a transaction or activity that may be suspicious, such as unusual patterns or possible money laundering, which must be submitted once suspicion is formed.

AFS licence

An Australian Financial Services licence issued under the Corporations Act authorises a person to provide financial services, subject to obligations to act efficiently, honestly and fairly.

Conflicts of interest

Situations where personal or organisational interests could improperly influence professional judgement; licensees must have arrangements to manage them and disclose them appropriately.

Responsible lending

Under the National Consumer Credit Protection Act, a credit provider must assess that a loan is not unsuitable for the borrower based on their requirements and objectives and capacity to repay.

Financial Services Guide

A document a licensee must give to retail clients before providing a financial service, explaining the service, remuneration, associations and dispute resolution arrangements.

Product Disclosure Statement

A document that must be given to retail clients when a financial product is offered, setting out features, risks, fees and benefits to support an informed decision.

Internal dispute resolution

The licensee's own process for handling client complaints, requiring acknowledgement, investigation and a decision within specified timeframes before external escalation is available.

AFCA

The Australian Financial Complaints Authority is the external dispute resolution scheme for financial services, providing free, independent resolution of complaints within monetary limits.

Code of ethics

A set of principles governing professional conduct in financial services, including honesty, integrity, objectivity, confidentiality, competence and compliance with laws and regulations.

Fee disclosure

An obligation to clearly disclose fees, charges and commissions to clients, including ongoing fees, so that clients understand the total cost of the service or product.

Unit of competency

The nationally agreed specification of the skills and knowledge required in a workplace task, comprising elements, performance criteria, performance evidence and knowledge evidence.

Performance criteria

Statements within an element of competency that specify the standard of performance required to demonstrate competent performance of that element in the workplace.

Competency-based assessment

Assessment judged against the standard of the unit of competency rather than against other learners, with the result recorded as competent or not yet competent.

Principles of assessment

Validity, reliability, flexibility and fairness. These govern how evidence is gathered and judged so that assessment decisions are sound and defensible.

Rules of evidence

Evidence must be valid, sufficient, authentic and current to support a judgement of competence; each rule addresses a different quality of the evidence collected.

Recognition of prior learning

An assessment process that credits skills and knowledge gained through work, life or previous study against the requirements of a unit of competency.

Accounting equation

Assets equal liabilities plus equity. Every transaction affects at least two elements and the equation must remain balanced after each entry.

Double-entry principle

Every transaction is recorded with equal debits and credits, ensuring the ledger remains balanced and errors can be detected through a trial balance.

Bank reconciliation

A process comparing the cash book balance with the bank statement, adjusting for unpresented cheques, outstanding deposits, bank fees and direct credits to explain the difference.

Unpresented cheque

A cheque written and recorded in the cash book but not yet presented to and cleared by the bank, causing the bank statement balance to be higher than the cash book.

Outstanding deposit

A deposit recorded in the cash book but not yet credited by the bank, causing the bank statement balance to be lower than the cash book balance at reconciliation date.

Petty cash float

A fixed amount of cash held for small disbursements; it is reconciled periodically and reimbursed to restore the agreed float amount, with vouchers supporting each payment.

Sequential receipting

Using pre-numbered receipts in order so that every payment received is recorded and missing numbers can be identified, supporting cash handling controls and audit trails.

Delegated authority

The defined limits within which an employee may approve transactions, refunds or settlements; matters beyond the limit must be escalated to a more senior officer.

Customer identification

The process of verifying a customer's identity using reliable, independent documents before providing services, as required by anti-money-laundering and counter-terrorism financing obligations.

Complaint handling process

A structured sequence of acknowledging the complaint, gathering information, investigating, deciding and communicating the outcome, with escalation to external dispute resolution if unresolved.

Confidentiality obligation

The duty to protect customer information from unauthorised access or disclosure, applying during employment and continuing after the employment relationship ends.