Developing & Presenting Broking Options for Clients with Complex Needs
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CASE: DEVELOPING & PRESENTING BROKING OPTIONS FOR CLIENTS WITH COMPLEX NEEDS.
Name of the Student:
Name of the University:
1
Name of the Student:
Name of the University:
1
PART I: WRITTEN ACTIVITY
1. Relevant Risk Issues.
a. Borrowing risk and gearing
'Gearing' can be stated as the Borrowing and investing, where existing investments are kept as
security.
By combining regular gearing with an investment lending facility, a regular investment
plan can be processed.
Risks of gearing
Gearing can also increase gains. The risks needed to be taken into account, such as:
Investment value may fall, but the balance of the loan remains the same.
Returns on investment can become overweight by cost interest, which can affect
cash flow.
b. Specific product risk: In any investment, this is a high risk. Investors make
decisions based on assumptions and technical analysis of financial products such as
mutual funds, interest rates, etc. that lead to some conclusions about how an investment
is likely to be performed. The key product for a rentable investment is identified and the
risk / loans ratio between potential losses and potential gains is evaluated an important
element of the investment analysis.
c. Institutional risk: Financial institutions are the firms and institutions that provide
customers with financial products and services that may not be able to get them on their
own more efficiently. Sometimes from the bottom line they face relentless pressure.
Challenges of uncertainty, such as regulatory changes, data breaches and other cyber
risks, apply additional global economic pressure. Insurance will face a number of key
challenges, including risks associated with bad faith litigation, compliance with
government and global regulatory requirements, data security, and rising cyber / privacy
risks.
d. Risk factors and return expectations of the client: In the analysis of
any investment there are two fundamental factors (risk and return). Of course, the
highest return of their investments will be achieved by all investors. But there is always
a balance between possible return and potential risks. Financial advisors or money
managers must produce an accurate risk assessment for individual clients. The money
manager can therefore choose the most appropriate investment for the customer.
e. Volatility of income and capital: The income or return paid by a fund is
called the income risk when the value decreases. The impact of this type of risk has the
greatest impact on money market and short - term income strategies, where long - term
investments are based on interest rates and have no potential impact of income risk. In
the case of individual bond, the risk of income becomes an increase in the risk rate of
income. The decline in the interest rate in short - term debt securities will result in a
reduction in that fund's risk yield. The risk of income and the risk of income are nearly
Student Name:
Unit Code:
Date:
1. Relevant Risk Issues.
a. Borrowing risk and gearing
'Gearing' can be stated as the Borrowing and investing, where existing investments are kept as
security.
By combining regular gearing with an investment lending facility, a regular investment
plan can be processed.
Risks of gearing
Gearing can also increase gains. The risks needed to be taken into account, such as:
Investment value may fall, but the balance of the loan remains the same.
Returns on investment can become overweight by cost interest, which can affect
cash flow.
b. Specific product risk: In any investment, this is a high risk. Investors make
decisions based on assumptions and technical analysis of financial products such as
mutual funds, interest rates, etc. that lead to some conclusions about how an investment
is likely to be performed. The key product for a rentable investment is identified and the
risk / loans ratio between potential losses and potential gains is evaluated an important
element of the investment analysis.
c. Institutional risk: Financial institutions are the firms and institutions that provide
customers with financial products and services that may not be able to get them on their
own more efficiently. Sometimes from the bottom line they face relentless pressure.
Challenges of uncertainty, such as regulatory changes, data breaches and other cyber
risks, apply additional global economic pressure. Insurance will face a number of key
challenges, including risks associated with bad faith litigation, compliance with
government and global regulatory requirements, data security, and rising cyber / privacy
risks.
d. Risk factors and return expectations of the client: In the analysis of
any investment there are two fundamental factors (risk and return). Of course, the
highest return of their investments will be achieved by all investors. But there is always
a balance between possible return and potential risks. Financial advisors or money
managers must produce an accurate risk assessment for individual clients. The money
manager can therefore choose the most appropriate investment for the customer.
e. Volatility of income and capital: The income or return paid by a fund is
called the income risk when the value decreases. The impact of this type of risk has the
greatest impact on money market and short - term income strategies, where long - term
investments are based on interest rates and have no potential impact of income risk. In
the case of individual bond, the risk of income becomes an increase in the risk rate of
income. The decline in the interest rate in short - term debt securities will result in a
reduction in that fund's risk yield. The risk of income and the risk of income are nearly
Student Name:
Unit Code:
Date:
similar concepts other than the initial applies to funds, while the other applies to
individual debt securities.
2. Complex Features of a Client Situation and Needs.
a. Commercial loans: Commercial loans are debt - based financing arrangements
between an enterprise and a financial institution, for example a bank. They are generally
used to finance substantive expenditures on capital or cover otherwise unable to afford
the operating costs of the business.
b. Chattel leases: A chattel mortgage is a common way of financing cars in business.
It is a commercial finance product where a financial provides the money to purchase a
car and the customer makes regular repayments.
c. Native title rights: “The Native Title Act 1993 is a law passed by the Australian
Parliament that recognizes the rights and interests of Aboriginal and Torres Strait
Islander people in land and waters according to their traditional laws and customs”.1
d. Heritage issues: In cases where property use can become an illegal affiliation to
the client and broker, heritage can be a serious issue.
e. Contaminated Sites or properties near noxious industries: In
some cases, as well as the sites used for mortgage broking, transparency checks should
be carried out to obtain an overview of the property, as in some cases the property
contains hazardous situations such as having high pipe lines below them or because they
are close to industries that may have radioactive effects or chemical releases that have
direct or indirect health effects.
3. Key Products Available In the Broking Industry.
A. Bill Re-discounting Schemes (BRDS): Bill Re - discounting schemes is a
currency market scheme when banks raise funds by issuing group and maturity
promissory notes that matches the discounted trade bills. This scheme helps to keep
market cash liquidity. There is a transaction limit of at least 15 days and a maximum of
90 days. The bank borrowing in this scheme may issue a lender promissory note and an
effect certificate - the bank holds genuine bills equal to the amount of the transaction.
B. Mutual fund: A combined stock policy mobilizing funds from stockholders to
stocks, bonds, short - run fund market instruments and/or alternative securities is
understood as a mutual fund. Operators normally manage this securities portfolio and
gain financial gain from completely different approaches such as dividends, interest and
capital gains. The income is shared by the open - end investment firm's shareholders.
Monetary firms generally have their own stream of in-house mutual funds, and therefore
1 Müller, M. A., Riedl, E. J., & Sellhorn, T. (2015). Recognition versus disclosure of fair values. The Accounting Review, 90(6), 2411-2447.
Student Name:
Unit Code:
Date:
individual debt securities.
2. Complex Features of a Client Situation and Needs.
a. Commercial loans: Commercial loans are debt - based financing arrangements
between an enterprise and a financial institution, for example a bank. They are generally
used to finance substantive expenditures on capital or cover otherwise unable to afford
the operating costs of the business.
b. Chattel leases: A chattel mortgage is a common way of financing cars in business.
It is a commercial finance product where a financial provides the money to purchase a
car and the customer makes regular repayments.
c. Native title rights: “The Native Title Act 1993 is a law passed by the Australian
Parliament that recognizes the rights and interests of Aboriginal and Torres Strait
Islander people in land and waters according to their traditional laws and customs”.1
d. Heritage issues: In cases where property use can become an illegal affiliation to
the client and broker, heritage can be a serious issue.
e. Contaminated Sites or properties near noxious industries: In
some cases, as well as the sites used for mortgage broking, transparency checks should
be carried out to obtain an overview of the property, as in some cases the property
contains hazardous situations such as having high pipe lines below them or because they
are close to industries that may have radioactive effects or chemical releases that have
direct or indirect health effects.
3. Key Products Available In the Broking Industry.
A. Bill Re-discounting Schemes (BRDS): Bill Re - discounting schemes is a
currency market scheme when banks raise funds by issuing group and maturity
promissory notes that matches the discounted trade bills. This scheme helps to keep
market cash liquidity. There is a transaction limit of at least 15 days and a maximum of
90 days. The bank borrowing in this scheme may issue a lender promissory note and an
effect certificate - the bank holds genuine bills equal to the amount of the transaction.
B. Mutual fund: A combined stock policy mobilizing funds from stockholders to
stocks, bonds, short - run fund market instruments and/or alternative securities is
understood as a mutual fund. Operators normally manage this securities portfolio and
gain financial gain from completely different approaches such as dividends, interest and
capital gains. The income is shared by the open - end investment firm's shareholders.
Monetary firms generally have their own stream of in-house mutual funds, and therefore
1 Müller, M. A., Riedl, E. J., & Sellhorn, T. (2015). Recognition versus disclosure of fair values. The Accounting Review, 90(6), 2411-2447.
Student Name:
Unit Code:
Date:
investment limits are usually low. This method does not contain any rigidity in selecting
merchandise from different types such as Equity, Debt, and Fund Markets. Most
schemes are open concluded that supply liquidity. an individual will invest in mutual
fund - either in variety of Lump-sum or Systematic Investment set up (SIP).
C. Capital Gain Bonds: Capital gain bonds are simply another form of bonds
wherever someone is exempted from long - term capital gains once a similar amount is
invested with fettered, the exemption may be appropriate to the amount of investment
created, whichever is a smaller amount. The interest rate offered is close to 6 June 1944
every year.
D. Treasury Bills (T-bills): Treasury bill refers to a common currency market tool
issued by the RBI, through India's government. Treasury bill is issued on 14, 28, 91, 182
and 364-day maturity.US Treasury Issues Treasury bills or T-bills are instruments of
short-term debt. We’ll need to use a middleman here to handle T - bills.
4. Relevant Legislation, Regulations and Codes of Practice.
The induction training helps to integrate new employees into the business so that they can easily
understand and cope with the work system and get to know the procedures of any broking
organization's different departments.
Relevant Legislation
Health and safety management should be included in induction process.
To develop good work habits, new workers must be ensured, which will be the same with
safe work practices.
Workplaces for induction need to look for healthy and safe places.
Some emergency equipment, such as personal protective equipment, must be placed in the
workplace of the induction, which may require further training.
There should also be fire alarms and fire fighting equipment, and there should also be
locations of such equipment and demonstration.
It is necessary to place first aid and other contacts for emergencies.
Regulations and codes of practice
a. An induction program should be initiated by bringing new employees into the company's
mission, goals, and values. Employee induction process is important because it provides the
reasons why the company exists, where it originated, and where it is headed.
b. The new employees should be introduced to other staff members and let them know what they
are doing. Supervisors in the organization can also write welcome email to everyone.
c. The trainer should use some visuals, sales figures from past years, and should avoid theory -
based training. As human beings like more than text remembering the data. Examples of real -
life market competition information are important to enable them to connect easily.
d. The trainers should involve senior management so that the trainees can get to know the people
who are in the company's scenes.
e. By questioning and answering the process, participatory learning methods can be most effective.
f. Product Training
Student Name:
Unit Code:
Date:
merchandise from different types such as Equity, Debt, and Fund Markets. Most
schemes are open concluded that supply liquidity. an individual will invest in mutual
fund - either in variety of Lump-sum or Systematic Investment set up (SIP).
C. Capital Gain Bonds: Capital gain bonds are simply another form of bonds
wherever someone is exempted from long - term capital gains once a similar amount is
invested with fettered, the exemption may be appropriate to the amount of investment
created, whichever is a smaller amount. The interest rate offered is close to 6 June 1944
every year.
D. Treasury Bills (T-bills): Treasury bill refers to a common currency market tool
issued by the RBI, through India's government. Treasury bill is issued on 14, 28, 91, 182
and 364-day maturity.US Treasury Issues Treasury bills or T-bills are instruments of
short-term debt. We’ll need to use a middleman here to handle T - bills.
4. Relevant Legislation, Regulations and Codes of Practice.
The induction training helps to integrate new employees into the business so that they can easily
understand and cope with the work system and get to know the procedures of any broking
organization's different departments.
Relevant Legislation
Health and safety management should be included in induction process.
To develop good work habits, new workers must be ensured, which will be the same with
safe work practices.
Workplaces for induction need to look for healthy and safe places.
Some emergency equipment, such as personal protective equipment, must be placed in the
workplace of the induction, which may require further training.
There should also be fire alarms and fire fighting equipment, and there should also be
locations of such equipment and demonstration.
It is necessary to place first aid and other contacts for emergencies.
Regulations and codes of practice
a. An induction program should be initiated by bringing new employees into the company's
mission, goals, and values. Employee induction process is important because it provides the
reasons why the company exists, where it originated, and where it is headed.
b. The new employees should be introduced to other staff members and let them know what they
are doing. Supervisors in the organization can also write welcome email to everyone.
c. The trainer should use some visuals, sales figures from past years, and should avoid theory -
based training. As human beings like more than text remembering the data. Examples of real -
life market competition information are important to enable them to connect easily.
d. The trainers should involve senior management so that the trainees can get to know the people
who are in the company's scenes.
e. By questioning and answering the process, participatory learning methods can be most effective.
f. Product Training
Student Name:
Unit Code:
Date:
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