Competency Framework: investments

Technical Domains

7. Investments

This domain is about issues relating to investments, including: risk versus reward; different types of investment product; trader funds; shares; investment charges; sources of detailed information; scams. The domain comprises Tiers 1, 2 and 3. 

It is important that you are aware of where the regulated boundaries are and do not go beyond them (please refer to ‘The boundaries of the service and of your role’ and the description of advice and guidance). Guidance should provide information and/or options on the customers' choice of investment option (e.g. trader funds, shares etc.), without making an explicit recommendation.

7.1.1 Awareness of what an investment is
7.1.2 Awareness of the concept or risk versus reward and how this applies to investments
7.1.3 Awareness of scams and what to do if a customer has been the subject of a scam
7.2.1 Knowledge of different types of investment products
7.2.2 Awareness of investment principles
7.2.3 Awareness of trader funds
7.2.4 Awareness of what ‘shares’ are
7.2.5 Awareness of the rules of the use of Individual Savings Accounts (ISAs)
7.2.6 Awareness of the practice of ‘wrapping investments’
7.3.1 Knowledge of regulated and unregulated products
7.3.2 Knowledge of asset classes and diversification
7.3.3 Knowledge of how shares and investments work
7.3.4 Knowledge of different funds and how they are valued
7.3.5 Knowledge of investment charges
7.3.6 Knowledge of where to get detailed information about investments
7.3.7 Knowledge of the types of fees of Independent Financial Advisers (IfAs)
7.3.8 Knowledge of the importance of using an IfA

Training and qualifications

Find out about external training for the investments domain.

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