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 THAT HAS PASSED THE END DATE: 

Explain basic transactions in the collective investment industry 
SAQA US ID UNIT STANDARD TITLE
9001  Explain basic transactions in the collective investment industry 
ORIGINATOR
SGB Financial Services 
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 3  NQF Level 03  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2004-12-02  2007-02-21  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2008-02-21   2011-02-21  

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 is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
243135  Explain common transactions in a collective investment scheme portfolio  Level 3  NQF Level 03  2   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard provides a broad introduction to the collective investment industry. It builds on the Unit Standards, Describe collective investment schemes, Outline the structure of the collective investment industry and the Unit Standard Indicate how collective investment scheme portfolios are reported.

The qualifying learner is capable of:
  • Knowing and explaining the concept of buying participatory interest in collective investment scheme portfolios.
  • Explaining the concept of repurchasing of participatory interest in collective investment scheme portfolios.
  • Explaining the concept of switching in the collective investment industry.
  • Explaining the concept of cessions. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication and Mathematical Literacy at NQF Level 2. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Processes include the buy, sell, switch, cede processes and timing. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Know and explain the concept of buying unit trusts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The charges associated with the purchase of unit trusts are named in accordance with the Unit Trust Control Act. 

    ASSESSMENT CRITERION 2 
    2. Basic principles that apply to banking transactions are known and applied to the purchase of unit trusts. 

    ASSESSMENT CRITERION 3 
    3. The consequences of Rand cost averaging are understood and applied to the purchase of unit trusts. 

    SPECIFIC OUTCOME 2 
    Explain the concept of repurchasing of unit trusts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The price used to repurchase unit trusts is identified from a daily newspaper. 

    ASSESSMENT CRITERION 2 
    2. Charges associated with repurchasing are named in accordance with the Unit Trusts Control Act. 

    SPECIFIC OUTCOME 3 
    Explain the concept of switching in the unit trust industry. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The term switching is explained in the context of the unit trust industry. 

    ASSESSMENT CRITERION 2 
    2. Rules associated with switching are explained in the context of a particular management company. 

    ASSESSMENT CRITERION 3 
    3. The benefits of switching or not switching between two unit trust funds are compared from a customer's perspective. 

    SPECIFIC OUTCOME 4 
    Explain the concept of cessions. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of cessions is explained in terms of when someone would use a cession. 

    ASSESSMENT CRITERION 2 
    2. The regulations relating to cessions are explained within the context of a particular management company. 

    ASSESSMENT CRITERION 3 
    3. The disadvantages of ceding unit trusts are explained with reference to a particular investment objective. 

    SPECIFIC OUTCOME 5 
    Explain transactions on the death of a unit holder. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. Supplementary documentation required on the death of a holder is identified according to the specifications of a particular management company. 

    ASSESSMENT CRITERION 2 
    2. The process followed on the death of a unit holder is described in terms of transfer of units or payout. 

    ASSESSMENT CRITERION 3 
    3. The process for dealing with non-standard trust transfers is outlined in terms of a particular management company. 

    SPECIFIC OUTCOME 6 
    Know and explain the concept of buying participatory interest. 
    OUTCOME NOTES 
    Know and explain the concept of buying participatory interest in collective investment scheme portfolios. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The fees associated with the purchase of participatory interest in collective investment scheme portfolios are named with reference to the Collective Investment Schemes Act, no 45 of 2002 (CISCA). 

    ASSESSMENT CRITERION 2 
    2. Basic principles that apply to banking transactions are known and applied to the purchase of participatory interest in collective investment scheme portfolios. 

    ASSESSMENT CRITERION 3 
    3. The consequences of Rand cost averaging are understood and applied to the purchase of participatory interest in collective investment scheme portfolios. 

    SPECIFIC OUTCOME 7 
    Explain the concept of repurchasing of participatory interest. 
    OUTCOME NOTES 
    Explain the concept of repurchasing of participatory interest in collective investment scheme portfolios. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The price used to repurchase participatory interest in a collective investment scheme portfolio is identified from a daily newspaper. 

    ASSESSMENT CRITERION 2 
    2. Fees associated with repurchasing are named with reference to the Collective Investment Schemes Act, no 45 of 2002 (CISCA). 

    SPECIFIC OUTCOME 8 
    Explain the concept of switching in the collective investment industry. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The term switching is explained as it is used in the collective investment industry. 

    ASSESSMENT CRITERION 2 
    2. Rules associated with switching are explained in the context of a particular Collective Investment Schemes Manager. 

    ASSESSMENT CRITERION 3 
    3. The benefits of switching or not switching between two collective investment scheme portfolios are compared from an investor`s perspective. 

    SPECIFIC OUTCOME 9 
    Explain the concept of cessions. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of cessions is explained and an indication is given of when someone would use a cession. 

    ASSESSMENT CRITERION 2 
    2. The regulations relating to cessions are explained within the context of a particular Collective Investment Schemes Manager. 

    ASSESSMENT CRITERION 3 
    3. The disadvantages of ceding participatory interest in a collective investment scheme portfolio are explained with reference to a particular investment objective. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 

    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 
    A learner is able to collect, organise and evaluate information effectively by identifying what supplementary documentation is required by a particular Collective Investment Schemes Manager. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively using visual, mathematics or language skills when explaining the concept of cessions and the disadvantages of ceding and repurchasing of participatory interest in a collective investment scheme portfolio. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Learners can participate as responsible citizens in their organisation when comparing two collective investment scheme portfolios and informing investors of the benefits of switching or not switching between the two collective investment scheme portfolios. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 243135, which is ' Explain common transactions in a collective investment scheme portfolio ', Level 3, 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  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  INSETA 
    Elective  48494   National Certificate: Financial Services Management  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 
    Elective  20177   National Certificate: Insurance  Level 3  NQF Level 03  Passed the End Date -
    Status was "Registered"     		 2004-10-10  Was INSETA until Last Date for Achievement 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2007-02-11  Was INSETA until Last Date for Achievement 
    Elective  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2004-12-05  INSETA 


    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.