AAMC Training Group Cover Sheet

Financial Services Legislation & Compliance
Assessment cover sheet
In order for your assessment to be marked you must complete and upload all tasks
and this cover sheet via the AAMC Training Group portal. Your assessment tasks must
be uploaded in an electronic format i.e. Word, Excel, PDF or Scan. A maximum of five (5)
attachments (maximum 20MB each) can be uploaded for this assessment. Please see the
step-by-step instructions in your Member Area on how to upload assessments.
Student details
Course name
Assessment name Financial Services Legislation & Compliance Assessment
Surname Given name
Address Postcod
e
Email
Phone Phone
(other)
Current occupation
Industry Years in
industry
When you upload your assessment you will be asked to confirm that your assessment
submission to AAMC Training is your own work and NOT the result of plagiarism or excessive
collaboration, and that all material used from any third party has been identified and
referenced appropriately. AAMC Training may conduct independent evaluation checks and
contact your supervisor to discuss your assessment.
Checklist of attachments:
☐ Task 1 – Case study questions
☐ Task 2 – Workplace project
☐ Task 3 – Short answers/Activity
☐ Task 4 – Workplace project
☐ Task 5 – Activity
☐ Task 6 – Workplace project
☐ Task 7 – Research
☐ Task 8 – Research
☐ Task 9 – Short answers
Please indicate style of course undertaken:
☐ Face to face Trainer’s name: ☐ Correspondence ☐ Online
Once your assessment has been uploaded it will be pending review with your nominated
course assessor and marked within 5-10 working days. You will receive an email advising you
have been marked as “satisfactory” or “additional information required”.
If you have queries relating specifically to your assessment please log an ‘Assessment Query’
under the HELP tab on your Members Area dashboard and a Student Support officer will
respond. Alternatively, if you have an administration query please go to ‘Admin Query’. For
example: I am having trouble with uploading my assessments and require assistance – can
you please help me with this?
Should you need to speak to someone during office hours, please contact us by:
Phone: [phone] OR Email: [e-mail]
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Financial Services Legislation & Compliance
FINANCIAL SERVICES LEGISLATION & COMPLIANCE
ASSESSMENT
CREDIT TRANSFER
You may be able to claim credit transfer for a unit/s of competency that you have previously
completed with AAMC Training or another RTO. If you have been awarded a record of result
or statement of attainment for any of the units detailed below then please go to the Credit
Transfer tab in your Learning Centre and follow the prompts.
This assessment relates to the following units of competency:
 FNSINC401 Apply principles of professional practice to work in the financial services
industry
 FNSFMK505 Comply with legislation and industry codes of practice
Please refer to AAMC Training’s full Recognition Policy for further details.
PLEASE READ THESE IMPORTANT INSTRUCTIONS BEFORE
COMMENCING YOUR ASSESSMENT:
Please note articles and resources used in questions below are for the purpose of training only
and may be outdated but still acceptable to meet the requirements of the tasks.
In addition to fully reading and understanding the contents of the learner guide,
you have been provided an FMB Assessment Toolkit. We urge you to fully read and
understand both of these resources prior to commencing the following questions and case
studies as they will assist you in successfully achieving an understanding of this module and
thus a satisfactory result. Most of the tasks are related to the FMB Assessment Toolkit.
You will also need to access some of the forms and templates in the Useful Resources section
of your Members Area.
 Your answers to each of the tasks are to be typed into this document and uploaded.
 No assessment word count has been specified for some of the questions, although you are
expected to provide good quality answers to each of the questions.
 At the time of going to print the web links in this document were current. If you find a
broken link please research yourself and advise AAMC Training of the issue.
 Although some general discussion between students covering the assessment is allowed
your responses to each of the questions must be an individual effort.
 PLEASE NOTE: AAMC Training only wants to see your own work. Please do not upload
parts of the learning guide or instructions on how to complete. When this extra
information is uploaded it presents unnecessary work for the assessors and in turn delays our
assessment responses.
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Financial Services Legislation & Compliance
Task 1 – Case Study
As part of managing your professional development and maintaining currency, you read many
industry articles. You received this following article from Industry Media and decided it might
be a good one for yourself and the other finance brokers (authorised credit representatives) of
DNZ, in order to understand the industry better.
The historic low interest rate of 1.5% which remained the same after nearly two years, is
expected to increase "at some point,” according to Philip Lowe, Governor of the Reserve Bank of
Australia (RBA). Economist Warwick McKibbin concurred stating that this has been shown by the
local economic and political climate. The increase is predicted even in global standards as an
effect of the rise of climate change policies, digital disruption, and the overall changing global
economy.
Due to low inflation, lack of growth in wages, and job insecurity - the present interest rate has
failed to catch up with the global interest rates. These in turn mean that household spending is
not enough to push the economy forward.
While the RBA is able to influence most interest rates in the economy, and in turn manipulate the
demand for borrowing, the banks are assumed to pass the cost on to borrowers. The banks
endeavour to shoulder the costs of borrowing funds within their business before passing it on to
borrowers via loan repayments.
As the RBA and banks determine the cash rate and interest rates, they do not solely govern the
behaviour of the financial services industry.
While this is so, there is the call to prepare for the rate hikes. It is best for borrowers to sort out
their finances ahead of time and be mindful of the industry’s climate, so that they are aware of
interest rate movements. If it is possible, park spare cash in an offset account or use it for paying
down the loan.
Case Study questions:
1. You have asked the finance brokers (ACR’s) in the DNZ business to consider the article
above which will also help them to better explain to their clients and referrers about
external impacts that may affect borrowing. Referring to the article above and the AAMC
Training learner guide, identify a minimum of three external forces that could influence
the move in interest rates and that also dictate the economic and political climate in
relation to the financial services industry.
Interest rates are charged when bank allows loan to a business. The interest paid by a
business forms part of finance costs of business and the same needs to be controlled. The
factors which influence interest rates of a business are listed below in details:
 Supply and Demand Factors: Interest rate levels are a factor of the supply and
demand of credit. Any increase in demand for money or credit will raise interest rate
and similarly decrease in demand would decrease the interest rate. The supply factoirs
also imopacts the interest rates in a direct manner. These factors need to be considerd
as such factors influences interest rates.
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Financial Services Legislation & Compliance
 Inflation: Inflation will also affect interest rate levels. The higher the inflation rate, the
more interest rates are likely to rise. Inflation is an important factor which can impact
the operations of the business. Infaltion rate would also tend to increase the finance
costs of a business. The inflationary pressure also impacts the demand and supply
factors of a credit and availability of labours of the business.
 Governmental Interventions: The government regulates the entire funding rates of
a economy and are qalso responsible for controlling the inflationary pressures in the
market The governmental interventions impacts the interest rates either increasing the
same or reducing the same in rthe market depending on the nature of business
operations.
2. What are the two financial services sectors that are involved in influencing interest rate
movements and how do they interrelate?
The two financial sectors which are involved in influencing the interest rate which is applicable
in a country are the Reserve bank of Australia and other financial institutions. The central
bank can regulate the interest rates which is allowed by different banks while the other other
financial institutions impacts the demand and supply of credit which takes place in a business
organization.
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Financial Services Legislation & Compliance
Task 2 – Workplace Project
1. Paul has asked you to write a staff memo to update everyone on the recent changes and
impact of the Australian Financial Complaints Authority (AFCA) on organisational policy,
guidelines and procedures.
Using the template below and considering the key points, write the office memo in less
than 500 of your own words*.
Refer to the AFCA website https://www.afca.org.au/members to locate relevant information
found under Members.
*MUST BE IN YOUR OWN WORDS
Dear colleagues,
ABOUT AFCA
*Who are AFCA and what are the benefits of AFCA membership?
The members of AFCA are Australian financial services licensees, Australian credit
licensees, authorised credit representatives and superannuation trustees and this to be
registered under their financial services licence conditions, in accordance with ASIC
Regulatory Guide RG 165.
The membership of AFCA helps a professional indifferent aspects such as provides
immense exposure to corporate world, helps in professional development of the
employees, assists in gaining experience so that quality level of services can be be
provided to the clients.
LETTING YOUR CUSTOMERS KNOW
*What are the key points that you have to consider in communicating information
about AFCA?
The key points which are considered for communicating information regarding AFCA are
listed below in point form:
 Members who are registered or associated with AFCA can use its
name, contact details, and logo primarily for the purposes of advising
customers of their right to contact AFCA. The AFCA provides guidelines
for the usage of iots logos and the same needs to be reffered before
using the same so that a certain level of efficiency is maintained in the
operational process of the business.
 Members are requested to refer to us as Australian Financial
Complaints Authority in the first instance. It is also to be notred that the
guidelines which are set should also be adhered to while conducting
any kibnd ofg operations in the financial markets. In addition to this,
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addressing of any compliants needs to be done according to the nature
of service provided.
 Members should ensure communications advising customers about
AFCA and provide all the details which are necessary so that a level of
transparency is maintained. The membes also needs to deal with all the
situations which arises as per the framework which is lready
established.
*What does the AFCA Code Compliance and monitoring team support and administer?
(Found under Codes of Practice)
The Code Compliance and Monitoring Team (Code Team) is a separately operated and
funded business unit of the Australian Financial Complaints Authority. The code and
compliance team of AFCA administers and supports the following:
 Code of Banking Practice
 General Insurance Code of Practice
 Insurance Brokers Code of Practice
 Customer Owned Banking Code of Practice
 Life Insurance Code of Practice
2. Paul Williams has asked you to update the DNZ Credit Guide with the correct wording
about AFCA. What information should be available to consumers on both the website and
in the credit guide? Reference: “Letting your customers know about AFCA”.
The management of DNZ needs to take appropriate steps for ensuring that the credit
guide incorporates all the necessary informations which is required for appropriate
management of the resources of the business and therefore guidelines of AFCA needs to
be followed in this respect. Th clients needs to kbnow about their rights and previledges so
that transparency is maintained in the operational process of the business.
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