Economic and Legal Context for Financial Planning (FPC001B) Analysis Task

Economic and Legal Context for
Financial Planning (FPC001B)
Analysis Task
Total marks: 30
Instructions to students
This analysis task covers Topics 1, 2 and 3, and accounts for 15% of your final grade.
Due date: You must ensure that you submit your Analysis Task by the due date. Late
submissions will not be accepted.
You will need to answer two (2) questions:
Question 1 is based on the case study located on the assessment page.
Question 2 requires you to undertake legal and regulatory research.
This task specifically addresses the following subject learning outcomes:
1. Explore the role of intermediaries in financial markets.
2. Explain the impact of current issues and key economic and financial indicators on
the Australian and global financial markets.
3. Analyse the impact of government and monetary policy on the Australian financial
markets.
5. Explore the main sources of law and the regulatory structure of financial services
law in Australia.

Question 1 (20 marks| Word limit: 750)
Impact of economic variables and government policiesNote: Please refer to the case study to answer the question below.
The case study mentions five (5) factors that Jane is concerned about.
For each factor listed, you are required to provide:
1. A description of the factor, covering the current market environment applicable
to that factor.
2. A focused explanation of how that factor has an influence on one (1) of Jane’s
investment objectives of your choosing.
3. In general terms, an explanation of how monetary and fiscal policy changes could
also influence the chosen objective.Hints:
• Your answer should have five parts – one for each factor mentioned in the case
study.
• Each factor/part should then be broken down into the elements 1-3 above;
accordingly. For full marks, you will need to provide 5 lots of 3 elements (15
elements total) in your answer.
• You should note the word limit and apply the limit evenly across the five factors.
• As the focus in the question is on economic and financial policy, do not attempt to
answer the question as if you were wearing a lending banker’s hat.
No actual borrowing advice or financial calculations are required. The question is
about the impact of economic variables and government policies, including fiscal
policy.Note: Marks are awarded for justification and research into the relevant topics.
Criteria-based Marking Guide for Question 1
Excellent (Mark range: 15–20
marks)
Satisfactory (Mark range: 10–
14.5 marks)
Unsatisfactory (Mark range: 0–
9.5 marks)
• clear and concise description of
each factor, including current
conditions and expectations
• excellent understanding shown
of how each factor impacts or
influences one or more of the
client objectives
• sound analysis of the influence
of central bank and government
policy on each of the factors
• evidence of external research
with appropriate references
• adequate description of each
factor
• reasonable understanding
shown of how the factors
impact or influence the client
objectives
• some analysis of the influence
of government policy on each
of the factors
• some evidence of external
research
• incorrect or little description of
factors
• poor understanding shown of how
the factors impact or influence
the client objectives
• little analysis of the influence of
government policy on each of the
factors
• little or no evidence of external
research
For office use only
# 1 2a(i) 2a(ii) 2a(iii) 2b(i) 2b(ii) 2b(iii) 2c(i) 2c(ii) TOTAL
Max 20 1 1 1 1 1 2 1 2 30
Awarded
**
Expressio
n is faulty
**

Insert your answers to Question 1 below this line
Labour Market Conditions
 The current labour market conditions in Australia depict the overall growth but
there is a fall in the real estate services in the market. There is a boom in the
rate of employment in the economy, but a drop in particular to the real estate
labours (Australian Government, 2019).
 The influential outcome of this analysis is the labours there are moving jobless,
but the rates are high. As an impact, the available market conditions make the
positive impact to hire the labour for the construction services. The person may
also find the problem in searching of labours in the available market scenario.
 The monetary policy is here important to cover up the deviation in the economic
market. The more money in the market with the people will motivate to work
improving the market conditions. The Monterey issues can be raised with the
efforts of the government and non-government organisations.
Interest Rate Environment
 The existing interest rate environment in Australian market showcases the cash
rate unchanged at 1% as to maintain the economic growth and cash balances in
the market. This year the central bank has reduced the interest rates for loans,
due to the subdued inflation rate resulted the ease in monetary flow (RBA,
2019).
 The current interest rate is in favour of Jane concerning the ease in the flow of
cash in the market. The Jane now can expand on various factors used up in the
construction of the property. The benefit of risk distribution is also availed in the
current economic market of Australia.
For office use only
# 1 2a(i) 2a(ii) 2a(iii) 2b(i) 2b(ii) 2b(iii) 2c(i) 2c(ii) TOTAL
Max 20 1 1 1 1 1 2 1 2 30
Awarded
**
Expressio
n is faulty
**