Foundations of Financial Planning Written Assignment Complex Lending and Broking (DIPMB2_AS_v3) Student identification (student to complete) Please complete the fields shaded grey. Student number Written Assignment result (assessor to complete) Result — first submission Not yet demonstrated Parts that must be resubmitted Result — resubmission (if applicable) Not applicable Result summary (assessor to complete) First submission Resubmission (if required) Resubmission (if required) Task 1 Demonstrated Demonstrated Not applicable Task 2 Demonstrated Demonstrated Not applicable Task 3 Demonstrated Demonstrated Not applicable Task 4 Demonstrated Demonstrated Not applicable Task 5 Demonstrated Demonstrated Not applicable Feedback (assessor to complete) [insert assessor feedback] Before you begin Read everything in this document before you start your written assignment for the Complex Lending and Broking (DIPMB2_AS_v3) subject. About this document This document is the written assignment and includes the following: •Instructions for completing and submitting this written assignment •Section 1: Case Study A – Ray Murdoch and Steve Brown – Commercial Equipment Finance –Task 1a – Identify the clients’ complex broking needs –Task 2a – Develop complex broking options –Task 3a – Implement complex loan structures –Task 4a- Detailing analysis findings •Section 2: Case Study B – Bill Smith and John Jones – Commercial Premises Finance –Task 1b – Identify the clients’ complex broking needs –Task 2b – Prepare complex broking options –Task 3b – Implement complex loan structures –Task 4b – Detailing analysis findings •Section 3: Improving practice performance –Task 5 – Develop, research and monitor plans to improve performance How to use the study plan We recommend that you use the study plan for this subject to help you manage your time to complete the written assignment within your enrolment period. Your study plan is in the KapLearn Complex Lending and Broking (DIPMB2v3) subject room. Instructions for completing and submitting this written assignment Saving your work Download this document to your desktop, type your answers in the spaces provided and save your work regularly. •Use the template provided, as other formats will not be accepted for this written assignment. •Name your file as follows: Studentnumber_SubjectCode_Assignment_versionnumber_Submissionnumber (e.g. 12345678_DIPMB2_AS_v3_Submission1). •Include your student ID on the first page of the written assignment. Before you submit your work, please do a spell check and proofread your work to ensure that everything is clear and unambiguous. The written assignment The information and data you need to complete this written assignment is presented in the case studies at the beginning of each task. This written assignment covers complex lending and broking and requires you to answer the questions for Section one (1) or Section two (2) and Section 3. Each case study focuses on a different lending scenario. Word count The word count shown with each question is indicative only. You will not be penalised for exceeding the suggested word count. Please do not include additional information which is outside the scope of the question. Additional research When completing this assignment, assumptions are permitted although they must not be in conflict with the information provided in the Case Studies. You may also be required to source additional information from other organisations in the finance industry to find the right products or services to meet your client’s requirements, or to calculate any service fees that may be applicable. Submitting the written assignment Only Microsoft Office compatible written assignments submitted in the template file will be accepted for marking by Kaplan Professional Education. You need to save and submit this entire document. Do not remove any sections of the document. Do not save your completed written assignment as a PDF. The written assignment must be completed before submitting it to Kaplan Professional Education. Incomplete written assignments will be returned to you unmarked. The maximum file size is 20MB for the written assignment. Once you submit your written assignment for marking you will be unable to make any further changes to it. You are able to submit your written assignment earlier than the deadline if you are confident you have completed all parts and have prepared a quality submission. Please refer to the Assignment submission/resubmission instructions (pdf) in the Assessment section of KapLearn for details on how to submit your written assignment. Your written assignment must be submitted on or before your due date. Please check KapLearn for the due date. The written assignment marking process You have 12 weeks from the date of your enrolment in this subject to submit your completed assignment. If you reach the end of your initial enrolment period and have been deemed Not Yet Competent in one or more assessment items, then an additional 4 weeks will be granted, provided you attempted all assessment tasks during the initial enrolment period. Your assessor will mark your written assignment and return it to you in the Complex Lending and Broking (DIPMB2v3) subject room in KapLearn under the ‘Assessment’ tab. Make a reasonable attempt You must demonstrate that you have made a reasonable attempt to answer all of the questions in your written assignment. Failure to do so will mean that your assignment will not be accepted for marking; therefore you will not receive the benefit of feedback on your submission. If you do not meet these requirements, you will be notified. You will then have until your submission deadline to submit your completed written assignment. How your written assignment is graded Assignment tasks are used to determine your ‘competence’ in demonstrating the required knowledge and/or skills for each subject. As a result, you will be graded as either competent or not yet competent. Your assessor will follow the below process when marking your written assignment: •Assess your responses to each question, and sub-parts if applicable, and then determine whether you have demonstrated competence in each question. •Determine if, on a holistic basis, your responses to the questions have demonstrated overall competence. You must be deemed competent in all assessment items in order to be awarded your qualification, including demonstrating competency in: •all of the exam questions •the written assignment. ‘Not yet demonstrated’ and resubmissions Should sections of your assignment be marked as ‘Not yet demonstrated’ you will be given an additional opportunity to amend your responses so that you can demonstrate your competency to the required level. You must address the assessor’s feedback in your amended responses. You only need amend those sections where the assessor has determined you are ‘Not yet demonstrated’. Make changes to your original submission. Use a different text colour for your resubmission. Your assessor will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first assessor’s comments in your assignment, so your second assessor can see the instructions that were originally provided for you. Do not change any comments made by a Kaplan assessor. Units of competency This written assignment is your opportunity to demonstrate your competency against these units: Unit code Unit name DIPMB2 Complex Lending and Broking DIPMB3 Business Management Skills FNSFMB502 Identify and develop broking options for clients with complex needs Started Completed FNSFMB503 Present broking options to clients with complex needs Started Completed FNSFMB504 Implement complex loan structures Started Completed FNSCUS501 Develop and nurture relationships with clients, other professionals and third party referrers Started Completed FNSPRM602 Improve the practice Started Completed Note that the written assignment is required to meet the requirements of the units of competency. We are here to help If you have any questions about this written assignment you can post your query at the ‘Ask your Tutor’ forum in your subject room. You can expect an answer within 24 hours of your posting from one of our technical advisers or student support staff. Section 1: Case study A — Ray Murdoch and Steve Brown – Commercial Equipment Finance Note: You only need to complete Section 1 or Section 2 tasks 1-4 in this assignment, plus Section 3 task 5. Background You have just met with Ray Murdoch and Steve Brown, referred to you by another commercial client. Ray Murdoch and Steve Brown jointly own a successful and growing business that manufactures metal pallets. They trade under the name Pallets-R-Us Pty Ltd. The pallets are manufactured using material that is lightweight and durable. There has also been a very structured approach to the research and development for the engineering and design of the pallets. The pallets are used in all industry sectors. Part of the process involves powder coating the finished product, which is currently outsourced to a local well-established contractor. It is critical that Ray and Steve’s product meets market needs. They need to maintain sustainable production and operating costs if they are to forecast their sales and cost of sales. They have a well-established client database that provides them with repeat ‘business-to-business’ dealings. While they have only been trading for 30 months, they have a solid business plan with written supply contracts with three major business clients and several smaller business clients. Ray and Steve now require finance to assist them with the purchase of a sophisticated machine that uses the technical platform system CNC. This machine can be programmed to rapidly fabricate multiple components. The machine has an expected commercial lifespan of at least 15 years with operating software to be updated every three years. This software and upgrades is included in the purchase price of $800,000. They will have to import the machine from the US. Initial enquiries with the US supplier have indicated that they will require a letter of credit for the import of the machine. Once the machine has arrived and installed on the premises the letter of credit will be replaced with an asset lease. The asset lease requested by the borrowers will be for a seven-year term with a residual of 15%. Their business employs five people and, with the expected increase in business through the automation of production, they have forecast that they will need to recruit an additional two staff members in the next 3–6 months to meet sales/production demands. Ray has been in the metal fabrication field all his working life. He has an MBA and understands financial management. He also has solid engineering skills and developed the majority of the design works for the business. He is divorced and has no dependants. Steve is married and his wife is a school teacher and she will be retiring at the end of the year. Steve worked with Ray at ‘Protech’ as a foreman. His skills are in production and managing project/job flow. He has high level technical skills and can complete works to specification at a high standard. Steve and Ray have provided the last two years financial accounts for the trading business, as well as interim accounts for the current financial year. Ray’s brother provided business with a loan $500,000 when the business commenced and he is being repaid interest plus a principle repayment of $30,000 per annum. Applicant information Client Ray Murdoch Steve Brown Current address: Unit 43, 25 High St Northville,
and has lived there for six years 23 Desmond Lane Northville, and has lived there with Kate for seven years. They own property jointly. Home phone: 9001 2121 9002 1212 Status Ray is divorced with no dependent age children Steve is married with no dependents Employment Self-employed business owner Self-employed business owner