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Part 5: Foreign Exchange Case Study Certificate IV in Finance and Mortgage Broking Assessment Task FNS40815 Your details: Name: SWOPNIL K C Address: 12/35-37 Cambridge Street, Penshurst, NSW,2222. Phone: 0424300739 Company name Email:
[email protected] Your assessment task You are required to keep a copy of your assessment task for a period of 12 months. Submit your assessment to our Education Team via
[email protected] Plagiarism Statement All assessments must be your own work and not a result of plagiarism or collaboration with other students or workmates. Assessment The pass mark is 70% for each element. If you do not achieve this, you will receive feedback via your email address and be asked to resubmit your assessment for a second marking. Assignments will not be returned to you as they need to be retained for by us for verification and audit purposes. Task Assessments Total Mark Pass Mark Actual Mark 1 Identify and Interpret Compliance Requirements 27 19 2 Deliver and Monitor a Service to Customers 39 27 3 Contribute to OHS Hazard Identification & Risk Assessment 41 29 4 Manage Personal Work Priorities and Professional Development 24 17 5 Develop and Nurture Relationships with Clients, Other Professionals and Third Party Referrers 17 12 6 Promoting the Effective Use of Credit 15 10 7 Prepare a Loan Application on Behalf of Mortgage Broking Clients 64 45 8 Steps Taken by the Credit Provider 23 16 Total 250 175 Assessor’s Initials: ____________________ Assessment Date: ____________________ Introduction Objective The objective of this Assessment Task is to demonstrate that you have the skills and knowledge required to conduct a client relationship and comply with statutory, industry and organization compliance requirements. Elements to be assessed To achieve this objective, you will need to demonstrate your ability to: The assessment tasks in this assessment will allow you to demonstrate your knowledge and skills in relation to these elements. Assessment process Start by: 1. Reading the Assessment Task. 2. Type your answers to the assessment tasks into this template document (hand-written answers are not accepted) 3. Submit your completed document by uploading it on the ‘Ready for Assessment’ area of www.CPDplus.com Don’t forget to keep a copy and retain it for 12 months. Need help? If you have any questions or would like to request a digital copy of this assessment task, please email the Mentor Support Team at
[email protected] Statement of Completion Upon successful completion of this assessment you will be awarded the Statement of Completion for FNS40815 Certificate IV in Finance and Mortgage Broking. Task 1: Identify and Interpret Compliance Requirements 1. Identify compliance requirements Mortgage brokers face important compliance requirements, the foremost among them being the reasonable lending provisions of the NCCP Act. The penalties for non-compliance include loss of license (for businesses) and removal from the industry (for individuals). If fraud is involved there may also be the criminal penalties of fines and / or imprisonment. Compliance requirements are not static. It is therefore important to stay up to date with them. Mortgage brokers also need to keep up-to-date with the actions of the regulatory authorities such as APRA and the Reserve Bank. Their actions may not amount to direct regulation, but through their effects on interest rates and bank lending these authorities can have a very direct impact on the business mortgage brokers are able to do. (a) A key requirement of the responsible lending obligations is the ‘unsuitability test.’ What must a mortgage broker do to comply with the unsuitability test? No Mark 1. /1 2. /1 3. /1 (b) List the sorts of items a client’s requirements and objectives could include (as indicated by ASIC). Mark /2 (c) Leading credit providers and other financial organisations have code of ethics, sometime called codes of conduct. Select one of them and summarise it by itemising its main principles. Mark /4 Sub-total /9 Continued (d) In point form, list the key information that the NCCP Act requires to be contained in a Credit Guide. Mark /3 (e) It is important to keep up to date with compliance requirements so that the required changes can be made to organization procedures and product offerings. Suggest three sources that you can use. Mark /3 (f) Explain the requirement for Australian Credit Licensees to keep a training register. · Mark /2 (g) Explain APRA’s current attitude towards bank lending for investment properties. Mark /2 Sub-total / 10 Continued Task 1: Identify and Interpret Compliance Requirements Continued 1.2 Interpret, analyse and prioritise identified compliance requirements Some of the compliance requirements are difficult to meet. Unfortunately, also there have been some ‘rogue’ mortgage brokers who have failed to comply – to the disadvantage of their clients. The finance planning industry has been plagued by non-compliance in the largest planning groups, with the image of the industry being substantially tarnished as a result. It may not suffer greatly because of the absence of an alternative source of financial advice. This is not so with mortgage brokers. They are just establishing their reputation and consumers always have alternative of going to the lenders directly. (a) Select three tasks you perform on a regular basis that are subject to compliance requirements. No Mark 1. /1 2. /1 3. /1 (b) Identify the compliance requirements that are relevant to the three tasks selected, indicating the name of the relevant legislation, regulation or code of conduct. No 1. /1 2. /1 3. /1 (c) How does your organisation monitor your compliance? Mark /2 Sub-total /8 Total /27 Task 2: Deliver and Monitor a Service to Customers 2. Identify customer needs The relationship with a client is generally described as beginning with the establishment of empathy. In other words, it is first necessary for a mortgage broker to establish that he / she is truly interested in the client and the client’s needs. It is only after that that the mortgage broker has established the right to interview a client. (a) Use the internet or any other source to find a definition of empathy. Mark /1 (b) List three open-ended questions that assist in developing empathy with a client? How do such questions indicate empathy? No. Mark /2 /1 (c) List and explain the steps involved in an ‘active listening approach’. Mark /1 /1 /1 (d) How is client service commonly monitored in your organisation? What are the two possible outcomes? No. Mark 1. /1 2. /2 Sub-total /10 Continued Task 2: Deliver and Monitor a Service to Customers Continued 2.1 Deliver a service to customers In a survey on the reasons for referrals conducted by David Maister, only 10% were due to the quality of technical work. The remaining 90% of referrals were due to the quality of service. This indicates that the key to maintaining client relationships and gaining referrals is the provision of outstanding service. This has been described by Maister as ‘over-servicing’. (a) Describe three ways in which a mortgage broking organisation can attempt to ‘overservice’ clients? No. Mark 1. /1 2. /1 3. /1 (b) How would you keep a client informed about the progress of an application as it passed through a creditor provider’s hands? What approximate timing might be involved? No. Mark 1. /2 2. /2 (c) Describe how you might attempt to resolve conflicts with clients. Mark /2 (d) How do you can prepare clients for the hiccups that can happen while their credit application is being processed Mark /2 Sub-total /11 Continued (e) The chapter on Operating a Mortgage Broking Business contains an example suggesting that a mortgage broker acting in the best interests of clients should act as a Protector rather than an Expert. What are the implications for this in regard to (i) advice given to clients and (ii) recommending the most suitable loan products?. No. Mark 1. /2 2. /2 (f) How could you prepare yourself to deal with client concerns? Mark /2 (g) Give examples of the following legal breaches: breach of the duty of care, false and misleading conduct, unconscionable conduct & conflict of interest without disclosure. No. Mark 1. /1 2. /1 3. /1 4. /1 (h) Once a desirable market segment has been identified, a mortgage broking business can put its mind on developing suitable marketing strategies. List examples of different strategies that might be used. Mark /2 Sub-total /12 Continued (i) What steps can be taken to keep up to date with product changes and ensure that this knowledge is properly disseminated? Mark /2 (j) What are the procedures for dealing with client complaints in your organisation? Mark /2 (k) What normal protocols should for protecting the confidentiality of client files? Mark /2 Sub-total /6 Total /39 Task 3: Contribute to OHS Hazard Identification & Risk Assessment 3. Contribute to workplace hazard identification Occupational health and safety hazards are often considered only in terms of physical injury, perhaps the result of working with heavy machinery, working in an excessively noisy environment, or slipping or falling. Just as relevant, however, is work-related stress. This describes the physical, mental and emotional reactions of workers who perceive that their work demands exceed their abilities and/or their resources (such as time, help/support) to do the work. For the questions that follow, please read ‘Overview of Work-related Stress’ from the NSW Government. It may be found at: http://www.safework.nsw.gov.au/__data/assets/pdf_file/0008/99233/SW08367-1117-395314.pdf Other ‘Tip Sheets’ from the same website may also be useful. (a) How would you define workplace stress? Mark /4 (b) Suggest at least two ways in which work-related stress may affect client relationships. Mark /2 (c) Suggest at least four approaches you can take to reduce workplace stress? (Hint: you may find suggested ways if you key ‘handling workplace stress’ into a search engine). Mark /4 Sub-total /10 Continued Task 3: Contribute to OHS Hazard Identification & Risk Assessment Continued 3.1 Gather information about workplace hazards In assisting in the control of work-related hazards, you will need to be access suitable information. Please read ‘Glossary of Job Demands and Job Resources’ from the QUT/ANU