Financial Services Legislation & Compliance Assessment

The assessment coversheet for Financial Services Legislation & Compliance Assessment. It includes student details, course name, assessment name, and checklist of attachments. The article discusses the impact of external forces on interest rates, AFCA, and CCR.

Assessment cover sheet
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Student details
Course name Certificate IV in Finance
Assessment name Financial Services Legislation & Compliance Assessment
Student name Xi Jiang
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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:
☒Online ☐Virtual Class ☐Face to face (Trainer’s name: )
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Assessment V3.6 © AAMC Training Group A1

Should you need to speak to someone during office hours, please contact us by:
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training only and may be outdated but still acceptable to meet the requirements of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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Assessment V3.6 © AAMC Training Group A3

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 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.
News article resources can be found at the following websites (which were correct
at the time of this publication):

https://www.afr.com/news/economy/monetary-policy/prepare-australians-
for-rate-hikes-now-mckibbin-tells-rba-20180622-h11qcy (subscription-based) http://www.abc.net.au/news/2018-07-03/very-high-chance-of-an-interest-
rate-rise-next-month/9935456
 https://www.realestate.com.au/advice/how-to-survive-an-interest-rate-hike/
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.
1. RBA can actually influence the interest rate. 2.the government can influence
interest rate. 3. Globleencnomics may affect on interest rate 4. The risk to
borrow money can be different, so it effects on interest rate.
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2. thetheeconomic and political climatecan definite influence financial services
industry. For example Government can use RBA to increase or decrease interest
rate , and that will affect on the demand of loan, the borrowers may decrease by
interest rate higher, borrower will increase when the interest rate is low. For the
whole economic reason, Government don’t want the economic grow so fast or
too slow, so it may variy the interest rate to slow down the economy or
encourage the borrowers to invest. So in the financial industry the borrowerd
will always increase or decrease, due to the ennomic change.
3. What are the two financial services sectors that are involved in influencing
interest rate movements and how do they interrelate?
Hedging and banking institutions are the two main sectors which highly contribute in influencing
interest rates. In addition to this, the interrelation between both the sector can be identified as it
strategically using financial instruments and market strategies to offset risk of any adverse price
movement. These both the sector involves power to influence currency so can be referred as
crucial sector to impact interest rates of Australia. In banking industry credit score, history,
payment frequency, etc some of the factors which are included in this sector that contribute in
affecting interest rates.
4.
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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?
AFCA is the one of the authority which is a stop shop for consumer and
small business with complaints about banking, credit, insurance,
superannuation, investment, advice, etc. in addition to this Australian
Financial Complaints Authority provides fair, independent, effective
solution for financial disputes which provides higher ability to the small
businesses so that proper practice can be conducted. There are various
benefits which can be obtained by AFCA members which involves
expertise, professional development, higher specialized knowledge and
security. These benefits highly allows the members to be prompt ind
decision making & resolving their particular issue.
LETTING YOUR CUSTOMERS KNOW
*What are the key points that you have to consider in communicating
information about AFCA?
Financial services guides, products disclosure statement and mandatory
disclosure of documents , credit guides, website information, general
complaint brochures, IDR final response letters, etc these are the some of
the crucial information which need to be involved while communicating
with customers. There should be higher emphasis on providing crucial
information to customers so that accurate and fair information can be
provided to them.
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*What does the AFCA Code Compliance and monitoring team support and
administer? (Found under Codes of Practice)
The AFCA code compliance and monitor team practice in Australia
financial service industry to achieve standards so that people operating in
this sector can trust. The main aim of this team is to support financial firm
is to strengthen relationship with clients so that proper processing can be
provided. It set of promises outlining with customer so that specific
requirements will get accomplished. AFCA pay attention on supporting
independent committees to monitor compliance in Australian financial
service industry so strengthening relationship with clients, improving
complaints handling , reducing number of customers disputes via service
delivery, etc can be conducted.
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”.)
Our internal disputes resolution process has finished. If you do not think we
have resolved your complaint to your satisfaction, you can lodge a complaint
with the Australian Financial Complaints Authority (AFCA). AFCA provides fair
and independent financial services complaint resolution that is free to
consumers.
Website: https://www.afca.org.au/
Email: [e-mail].
Telephone: [phone]
In writing to: Australian financial Complaints Authority is the
platform which can help clients to solve their
complaints about banking, credit, insurance,
investment, etc. in case of further queries customer
can freely contact the particular authority in order
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to get the proper knowledge regarding internal
processes, benefits, charges, etc that can be useful
for them. There should be some crucial steps which
need to be adhered by customer involves complaints
must be lodged within time and be within
monetary jurisdiction, proper eligibility criteria in
order to get resolve their issues.
Time limits may apply to complain to AFCA. You should act promptly or otherwise consult the
AFCA website to find out if and when the time limit relevant to your circumstances expires.
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Task 3 – Short Answers/Activity
Read the following article and answer the relevant questions.The broker's guide to CCR
Having a complete picture of a borrower’s financial position promises many benefits for
lenders, brokers and borrowers alike. With comprehensive credit reporting on Australia’s
doorstep, The Adviser speaks to industry participants about how brokers can prepare for and
make the most of the new regime.
The mandatory comprehensive credit reporting (CCR) regime – which requires lenders to
provide access to customer credit data, such as repayment history, credit limits and types of
credit accounts – is being lauded as a revolutionary step in the lending process that could
facilitate improvements to credit decisioning, credit availability, operational efficiency and
competition, if implemented effectively.
What is CCR?
The National Consumer Credit Protection Amendment (Mandatory Comprehensive Credit
Reporting) Bill 2018, which was introduced into parliament mid-last year, requires lenders to
report positive credit information, such as when minimum payments on a credit card,
mortgage or personal loan are being made on time.
While the bill has been put on the backburner a number of times, the financial services
industry has been making progress in adapting to the new regime. By the end of September
2018, which was the government-imposed deadline for the major banks to insert 50 per cent
of their CCR data into a data exchange system, the big four banks, along with Citibank, HSBC,
Teachers Mutual Bank, RateSetter and MoneyPlace had become participants in the regime.
The government said that 100 per cent of CCR data would need to be shared by the big four
banks by the end of September 2019, and the deadline for other lenders are 12 months after
the major banks.
It is believed that CCR will allow all participating lenders, including non-banks and fintechs,
to better assess the risk status of a loan applicant.
From risk to opportunity
As Standard & Poor’s (S&P) notes in its report, Australian Structured Finance: Credit Analysis in a Digital
Ecosystem: “Having access to data on borrowers’ financial commitments and the deployment of data science
to analyse it will enable lenders to make a more accurate assessment of expenses, resulting in more prudent
underwriting.
“It will also facilitate greater consistency in debt-serviceability assessments.”
S&P predicts that an open data model will reduce the financial services industry’s reliance on time-intensive
manual processes, because a greater amount of information will be quickly and easily obtainable.
Peter Beaumont, head of growth at ASX-listed peer-to-peer lender Wisr, notes that, traditionally, the onus has
been on the borrower to provide information on how they managed their liabilities across a recent time
frame.
“Increased transparency... will have a huge positive contribution on business productivity along two
dimensions: one is avoiding wasted time and the other is around improved customer understanding,”
he says.
“Having CCR historical payment data regarding their liabilities allows [brokers] to better assess the facts
around the clients.”
Observing that “many people... don’t tell [their broker] everything”, Anthony Azar, principal at Fenero
Bespoke Finance, says CCR will open opportunities to have deeper discussions with clients, allowing brokers
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to understand early on the risk status of the client and the likelihood of them being successful in obtaining a
loan.
“[It will] allow you to see whether the loan can be done based on the [customer’s past conduct] or whether
you need to do the loan through second-tier [lenders], rather than push that through to first-tier [lenders]
only for it to bounce back [due to] an issue you weren’t aware of,” he says.
CCR may allow some Australians with black marks on their credit report to not be disadvantaged due to past
financial hardships.
“It could be somebody whose credit profile appears quite weak but CCR history tells us for the past two years
they’ve had three credit facilities and met every payment on time. That can have a significant influence on a
lender’s preparedness to lend,” Mr Beaumont says.
Conversely, Mr Beaumont says someone with a high income and numerous assets might present as low risk,
but CCR data could show that there is a history of missed payments and overspending. The broker will be
able to understand that the client is weaker than they initially thought and may need guidance before they
take on additional liabilities.
Mhairi MacLeod, founder and principal at Astute Ability Finance Group, says brokers who work with clients to
improve their credit history, such as through better budgeting, and teach them the importance of good credit
conduct “will be laying strong foundations for a client for life”.
She believes CCR will also enable more product innovation with wide-ranging benefits for customers.
“These changes will create wide-ranging competition for consumers across all forms of finance and allow
lenders on all product lines to compete against the majors on a more even playing field,” Ms MacLeod says.
Getting ready
Meanwhile, Mr Azar also suggests CCR could enable the creation of the “first straight-through home loan
approvals without human intervention”, adding that he thinks the regime will favour the fintech segment.
Once the CCR system is widely embraced, Mr Azar says “the first step of any deal will be to look at [client’s]
information” to get a better understanding of their true financial positions. This will determine the approach
that is taken by the broker and the client to achieve a positive outcome.
“You look at [the client’s] information and you might say, ‘You’ve got a bad record’ or ‘Here are three or four
lenders that could help and this is going to be the cost of funds and are you amenable to that interest rate?’
This is [rather than] running around in circles and doing all the work and realising it’s not bankable or it is
bankable but the interest rate is not amenable to the client,” he says.
According to Mr Beaumont, it will be important for brokers to understand every lender’s implementation
roadmap as there will be varying time frames for them to update their credit decisioning processes.
He notes that lenders, particularly fintechs, are rolling out their own products using the newly available data
for brokers and other partners to use, though brokers can also purchase the data directly from credit
bureaus.
Further, Mr Beaumont suggests that it is crucial that brokers understand how lenders will process CCR data
and what impact the data will have on their credit decisioning processes.
“As a broker… if you have a client who has a series of previously missed payments on their personal loan, as
evidenced by the CCR data, you need to ask yourself, ‘Does the lender who you’re proposing to introduce this
new loan to care about this? How are they going to react when they see the CCR data?’”
Mr Azar agrees, noting the decisions lenders make based on the same data will differ.
“There are lenders that have zero tolerance [for missed payments], some that have a dollar value tolerance,
and some that have a historic tolerance. They will have different views on, for example, what’s an acceptable
event of default. [Brokers will] need to be across all of this,”
he says.
Aggregators and lenders are already playing a role in supporting their brokers in this area of education,
according to Mr Beaumont, who says some are providing CCR training and a credit bureau access service
through their own portals.
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He says brokers should be cognisant that data quality in the initial stages of the regime will not be perfect,
but it will improve over time. As such, lenders also need to ensure, especially with negative CCR data, that it
is “correct and not a function of a poor upload from a recent contributor”.
“I would say for 2019, in the consumer space, CCR is essential knowledge that a broker must get a grip on to
do the right thing by their client.”
Ms MacLeod agrees, recommending that brokers seek relevant education and training to “ensure they are in
a position to offer clients the best possible advice”.Referenced from:https://www.theadviser.com.au/features/analysis/38778-the-broker-s-
guide-to-ccr
Task 3 Questions:
Paul has asked you to review the above article and consider the ongoing changes to
comprehensive credit reporting which is highly important information for staff and
customers. He has also asked you to ensure staff knowledge across the article in
relation to operational procedures and processes accurately reflect these changes.
He has mentioned that linking to the Equifax website and other industry related
information is a good way to remain up-to-date with ongoing changes.
Also, there are many ways to let clients know more about CCR and changes – see
sample: https://www.inovayt.com.au/what-you-need-to-know-about-the-new-
credit-reporting-laws-before-applying-for-a-home-loan/
1. There are some enhanced procedural implications with the CCR changes as to
what is required of a broker pre-CCR. What are the new changes, and the impact
to what a broker now has to consider/do?
This is the report that is concerned with comprehensive credit that might sound easy but shows
information regarding the delay payments impact on credibility. This may highly influence how
credit seeking people can get affected in getting loan in potential period. In addition to this, in
CCR the changes has occurred in the areas of lending procedure by including modifications in
credit decision making , availability, operational efficiency, competition, so that effective function
can be obtained. The changes that has been implemented involves access to customer credit data
by providing repayment history, credit limits and credit accounts is being revolutionary step
that has been implemented in credit providing process. Better data means improved efficiency so
that sound productivity by involving accurate and fair picture of credit performance. In the prior
time there were no requirements there was no aim at providing full disclosure of information to
lenders that has to result in more defaults payments. This has to impact negatively to the lenders in
financial manner so that better productivity can be attained. For brokers this information can
provide insight about individual's in debtedness and their willingness to repay and the amount
borrowed. This will positively impact the brokers so that proper l information can be derived.
2. How might you stay up to date with changes in CCR or any other regulations?
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There are various ways in which compliance with regulations in order to stay update with changes
implemented in CCR. The steps that can be taken into consideration involves monitoring
regulatory agency website them on most utilized platform so that ability to get proper knowledge.
In addition to this, subscribing blogs, agencies and joining industry associations, implementing
compliance software, etc can contribute in meeting the purpose of properly complying. These
actions can be highly useful in deriving greater sustainability in order to adhere with CCR
changes.
3. What would be a good method and time frame for updating finance brokers
(your staff) and clients regarding these changes? You may wish to place your
answer in a table similar to the one below.
Who How By when
Fina
nce
brok
er
Conductin
g internal
meeting
Once the
change has
been specified
by the official
authority. It
need to be
consult with
the finance
brokers so that
proper
implications
may be applied.
Clien
t
Email can be sent to all the
clients
Once
information has
been obtained
regarding
changes, it
becomes
essential to
provide
notification just
after the finance
broker has
understand so
that all queries
and confusion
can be
eliminated.
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Task 4 – Workplace project
Due to increased workloads, Paul has hired new broker, Shona, on a subcontract
basis andshe will undergo 24 months of mentoring. Shona was formerly a loan
processor in her previous role and already holds an FNS40815 Certificate IV in
Finance and Mortgage Broking qualification.
1. As an initial measure to implement a successful monitoring of the authorisation
process, discuss with Shona the procedures a responsible manager has to
undergo to authorise her as an Authorised Credit Representative (ACR) with
ASIC. This process forms part of the agency agreement required under ASIC
between Licensee’s and their authorised representatives. Using the table below,
complete the process of authorisation
https://asic.gov.au/for-finance-professionals/credit-licensees/credit-
representatives/
a. Undertake background checks on that representative.
b. Ensure that they are adequately trained to engage in credit activities.
c. Ensure that they have current external dispute resolution (EDR) scheme
membership before the authorisation is given.
d. Provide written consent to the appointment.
e. Ensure they have adequate systems and procedures in place to monitor and
supervise their representatives (see Monitoring and Supervising
representatives).
1. PROCESS IMPLICATION
Background
checks The background check comprises referee reports, police investigation and
giving emphasis on providing details regarding banned, disqualified person.
In addition to this, report of authorized credit representatives. To cope up
with ASIC protocol for requesting of [prospective representative.
Training
requirements The representative should have a least a certificate IV in financial
services. There should be undertaking of 20 hours of continuing
professional development plan each year. There should be able to engage
in credit activities to assess that representative are at least trained to
industrial standards.
Membership to
an EDR scheme This has no impact on the authorization procedure of representative but if
its is ceases to be member than it has impact on it.
Written consent Licensee should pay attention having written consent to enable a body
corporate credit representative. There should be written notice to any person
they are having sub authorize. The both the mentioned parties should retain a
copy regarding consent.
Monitoring and
supervising It is one of the crucial responsibility that should be properly exerted to
comply with credit legislation. The supervising criteria comprises giving
credit licensees information about the representative so that industrial risk
can be reduced. It can be interpreted that better practice can be conducted
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by examining true statements of credit representative.
2. Shona has asked you the difference between registering under an ABN versus an
ACN.In your own words describe what they are and how they differ. Information
may be found on Wikipedia, www.business.gov.au or similar resource.
ABN is basically Australia Business Number that is 11 digit number which has no cost
associated for applying one or by paper. ACN is the Australian Company Number which is 9
digit number which cost 495 at the time of publishing. ABN is the number which has been
published by Australian Taxation office that helps in tracking business activity and taxes. ACN
helps in knowing business structure.
3. Shona would also like some advice from you regarding when she should register
for GST.Explain the process for registering for GST, including who needs to
register and when. Information may be found at www.ato.gov.auor www.business.gov.au
In order to register for GST first go to its portal , generate TRN by completing OTP validation,
once the TRN is registered login with it and submit business and promoter information. When
the business has GST turnover of $ 75000 then firm should register. The owner must register the
business in the specified case for GST.
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Task 5 – Activity
As the Responsible Manager you role is to determine and plan work to be completed
by the finance brokers and team. As part your discussion with Paul, you have both
decided that the Finance Brokers (ACR’s) need to undertake some further training
to increase personal skills, make a more cohesive team and ensure service
improvement. The training will contribute towards their professional development
hours required for association membership and to meet ASIC requirements. This
training should take place as soon as possible and needs to be completed within the
next three months. To kick off the training (and lead by example) you have decided
to commence with planning some training for yourself.
1. Identify three personal competency goals you would like to achieve in your role
that would enhance your organisation’s image. Explain how you can go about
developing the skills needed to achieve your goals and your ideal timeframe for
completion. You may wish to use the responsible manager profile in the FMB
Assessment Toolkit or choose your own goals.
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Performance Objective Required Skills
Current Skills
Time frame to
complete
To become a good
communicator
The major skill required
to become a good
communicator is to
improve the listening
skills. The reason
underlying this fact is
that when the listening
will be good then this
will improve the
communication skills
Another skill is making
notes of everything
discussed with others.
This practice will assist
in remembering different
aspect as when notes will
be made then nothing
will be forgotten.
The current skill which is
present is good
knowledge of non- verbal
communication skill
which is helpful and also
good knowledge of
assertive and active voice
as well.
First 12 months
To improve interpersonal
skill
To develop skill of
creating positive working
environment. The reason
underlying this fact is
that when positive
culture will be created
then this will assist in
improving and attaining
business objectives.
Another skill required is
the confidence as when
there will be confidence
then any work can be
accomplished in good
and effective manner.
The skills which are
currently present is the
effective relationship
management. This is
good skill as I am
efficient enough in
maintaining good
relation with others.
First 6 months
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To become an effective
leader.
The major skill required
to become a good leader
is of listening effectively
because is leader will not
listen properly then they
will not be in position to
solve the things.
Another skill required is
to have a good
motivation skill in order
to stimulate others to
work in proper manner.
The skill which I possess
is of critical thinking and
because of this I am able
to take proper decisions.
Another skill which I
already possess is the
problem solving skill and
this assist in conflict
management.
First 8 months
2. Referring to ASIC RG206, what are the minimum continuing professional
standards for responsible managers?Include in your answer:
 the required number of hours
 how often your professional development should be completed, and
 what these activities shouldconsist of.
https://download.asic.gov.au/media/4112044/rg206-published-15-december-
2016.pdf
As per the ASIC RG 206, the minimum numbers of hours required for continuing
professional standards for responsible manager is 20 hours per year. Along with this for
professional development the manager must have undertaken either at least 20 hours of CPD per
year or must go a regular ‘knowledge update review’. Furthermore, the various activities included
are as follows-
Publication of journal articles
Preparation time for presenting at different professional conferences and seminars
Completion of online tutorial and quizzes and many other activities
3. Based on the “Credit Representative Profiles” in the FMB Assessment Toolkit,
and using the table below, complete a training needs analysis for each
individual.
Individual Performance Objective Required Skills Current Skills
Shona The objective is to improve the
prospecting skills to work in
more effective manner.
The skills required to learn
this are focus, consistency,
cold calling and many
others.
Basic understanding of the
loan products, understand of
loan policy and structure
Ron To improve the effective
conflict resolution and senior
equity release
The necessary skill to be
learnt for effective problem
solving is to enhance critical
thinking and analytical skill,
The skills currently present
is expert in working on
software, adaptability,
flexibility.
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initiative and resilience.
Rashana To improve time management The skill required for
developing organizing skill
are time management, goal
setting, delegation, self-
motivation and others.
The skills already present
are effective
communication, working
under pressure, analytical
thinking and others.
Lena To increase English language
skills
For this necessary skill need
to be possessed are effective
written communication,
verbal and non- verbal
communication, listening
skill, body language,
making notes and many
others.
The skills already present
are confidence, assertive and
active voice, proofreading
notes and others.
4. Using the “AAMC Training Course List” from the FMB Assessment
Toolkit,determine which training will need to be completed by each ACR,
whether it will be individually completed or as part of a team, and where the
training will take place.
Individual Course Method of study Time frame to
complete
Resources
Required
Offsite or in
office
Shona Complex lending
structure
Listening,
interacting with
others
2 hours PC. Ipad, notepad
and others
Offsite
Ron Effective conflict
resolution
Reading industry
articles and
journals
2 hours PC Ipad In office
Rashana Effective time
management
Attending
seminar and
networking event
and training
workshop
1 hour Notepad, pen,
highlighter,
In office
Lena English language
skills
Undertaking
articles and
attending
workshops
4 hours Notepad, pen,
PC, Ipad
highlighter
In office
5. How could you ensure that your contribution serves as a role model to others
and in turn, enhance the organisation’s image? Refer to Module1, Section 6.
For ensuring that the contribution is serving as a role model to others the major thing to be
undertaken is to take continuous feedback from the other people. This is particularly because of
the reason that when the feedback will be taken then others will provide actual information about
the learning and how will the learning has been implemented.
6. Briefly explain how you would actively encourage individuals to participate in,
take responsibility for and effectively communicate in team activities. Refer to
Module 1, Section 5 of the learner guide.
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18 © AAMC Training Group Assessment V3.6

For actively encouraging individuals to participate in and to take responsibility team the major
thing necessary is to effectively communicate with the other people. The reason behind this fact is
that when the communication will been good and clear then others will understand in better and
effective manner. hence they will apply all the things in the intended manner.
7. Shona is having issues learning the company’s CRM system and has a loan ready
to submit. Referring to the FMB Assessment Toolkit, answer the following
questions:
a. What learning should Shona complete in order to adapt to the Agggroup CRM
system and when can she complete this?
The aggroup CRM system the major learning Shona needs to have is proper learning of t sophisticated software and
access to diverse panel of lenders. She can complete this by having aggroup detail for days 6 hours.
b. Name the particular person/s in DNZ Financial Services, who should be able
to provide support to Shona regarding the software.
The person who can a system show now regarding the software in dnz financial service Ron Meehan as he is the
expert on using aggroup software.
8. Paul has asked you to provide some feedback to the team regarding the training
outcomes. The team performed the tasks well and you would like to make sure
you value and show encouragement towards their performance.How would
recognise and reward individual and team efforts?
For providing the feedback to the team relating to the training outcome the major thing which needs to be
implemented is to recognize each and every individual present in the team for their effective learning. Even though the
person has not made many efforts towards the learning but then also it is the duty of the manager to provide good
reviews so that they do not get discouraged.
9. Paul has advised that the company are now using AAMC Training’s LMS to record
CPD hours. Using the AAMC Training CPD area (this is an option in your AAMC
member area under Professional Development Record CPD/CE) or by creating
your own PD Statement (based on the AAMC Training example below)record a
minimum of 20 hours of professional development activitiesthat you may
complete as a finance broker. Refer to the professional development section of
the FMB Assessment Toolkit(under company professional development activities
or AAMC Training courses). You may also choose some of your own activities.
Assessment V3.6 © AAMC Training Group A19

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20 © AAMC Training Group Assessment V3.6

Course Provider Hours
Complex lending structure FBAA conference 8
Effective conflict resolution Internal compliance training
program
4
Seniors equity release Lender update 11
Effective time management Internal compliance training
program
3
English language skills Internal compliance training
program
5
31
Task 6 – Workplace Project
1. Paul would also like the team to attend a “First Home Buyer” event in hope to
gain some new business. Your role is to determine what tasks would be
allocated to whom within the business to get set up and have enough people on
your stand throughout the day. The following answers are ‘free thinking’
questions and thus the learner guide or assessment may not contain the
answers.
Not everyone needs to be involved but, you would like to ensure all the brokers
get the opportunity to attend the event. Consider the variables and write down
the tasks/ requirements into the planning table below in order of priority. Your
task should be based on looking at the skills of all staff in the office (as detailed
in the FMB Assessment Toolkit).
The event is happening at the Melbourne Convention Centre in two months’ time
and you have been advised that any items for the stand must arrive two days
beforehand.
 Organise for marketing materials, prizes and banners for stand
 Setting up the stand
 Packing up the stand after the event
 Maximum of two staff to attend the event (at any one time) and be on the
stand per session 9amto 12pm and 1pm to 5pm. You should consider having
different personality types to ensure that sales are being made consistently.
 Organise the courier to pick up the marketing materials for delivery to the
venue
Task Action Who must
action
Date/time to be
completed
 Organise for
marketing
materials,
prizes and
banners for
stand
To list all the awards required and
then order the list and other
marketing resources as well
For this one staff
will be enough
3 days
 Setting up the For this action required is to make
a list of people who are coming and
Both the staff 6- 8 days
Assessment V3.6 © AAMC Training Group A21

stand then according to that stand space
will be prepared
 Packing up the
stand after the
event
After the event all the packup of
props and material will take place
One staff 2 hours
 Organise the
courier to pick
up the
marketing
materials for
delivery to the
venue
List all the areas from where
marketing material need to be
delivered and then order it so that it
can reach to the venue
One staff 5 days
2. All of your team members did really well in achieving some good interest at the
event.
To prove that you value their efforts and to offer encouragement for future
tasks, you have decided to provide rewards. Explain ways in which you could
reward individual and team efforts.
For providing the rewards to individual and team efforts with the major focus will be laid on financial bonus to all the
employees and team members were performed well. This is pertaining to the part that it will attract a majority of the
people and also felicitation will take place over stage to encourage the working of the people.
3. You really want your team to get as many new prospects from the event as
possible. What is a process or idea you may be able to use to encourage the
team to participate?
For encouraging using the idea the major focus will be to simplify the idea in smallest ages.
This is very essential because it will assist others to understand the idea in more better and simpler
manner. And as a result of this majority of people will remember the idea.
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22 © AAMC Training Group Assessment V3.6

Task 7 - Research
1. As part your own professional development, serving as a positive role model and
teaching others, you have decided to review the MFAA Code of Practice. This will
ensure a thorough understanding and future training standards.Explain the
general standards of the code.
Code of practice of MMF a a is to promote and establishment professional standards among the member and the
consumers within the industry. In addition to this and other general standard is to promote commitment by the
members in order to comply with all the laws and regulations relating to the mortgage and finance industry. Along
with this it also promote ethical and fair business practices with promotion of maintenance high public standings.
2. As part of maintaining and ensuring compliance,you have decided to check and
categoriseall statutory records accordingly. Under each of the headings below,
list at least three types of registers that you believe fit the relevant
category.Refer to the FMB Assessment Toolkitand/or Module 1, Section 8 of the
learner guide to assist with your answer.
Recording Registers Records and Certificates Policies and procedures
Training register Licenses and membership Business continuity plan
Remuneration register Financial viability review Sustainability
Risk management register Records of internal and external audit Risk action plan
Conflict of interest register Human resource policy HR records
3. You are auditing one of the teams’ Product Disclosure Proposals and need to
discuss it with them before they hand it to the client. You’ve noticed(ongoing)
commission is shown as an annual figure instead of monthly. The loan was for
$320,000.
Estimate of commission to
be received by us. This
commission is payable to us
for assisting you to obtain
finance.
.65% of the amount of the principal finance amount shortly after the finance is
provided. We estimate this to be $208000
.15% per annum of your outstanding loan amount owing payable monthly. We
estimate the largest monthly payment to be $112000
These amounts are inclusive of GST.
Assessment V3.6 © AAMC Training Group A23

Fees and commissions
Fees payable to us for
the provision of
broking service
We do not charge any fees for our service. We get paid commission
from the lender. [OR – remove as appropriate]
Our service fee is $ (including GST) or % of the finance
amount,for arranging finance on your behalf. The fee is payable on
approval of your loan/s. [You cannot charge a fee before you provide
credit assistance]
Fees payable to third
parties
There are no fees or charges paid by us to third parties. [OR –
remove as appropriate]
Total fees and charges paid by us to third parties are $
(including GST). The fees and charges are paid to for
arranging . [for example ‘paid to XYZ Company for arranging
valuation’]
The fee is payable when required by the third party.
Estimate of commission
to be received by us.
This commission is
payable to us for
assisting you to obtain
finance.
.65% of the amount of the principal finance amount shortly after the
finance is provided. We estimate this to be $2,080.
.15% per annum of your outstanding loan amount owing payable
monthly. We estimate the largest monthly payment to be $480.
These amounts are inclusive of GST.
Commission will be
paid by:
The commission will be paid by the lender documented above to the
licensee. The licensee will then pay some or all of the commission to
the credit representative.
Other benefits
From time to time we receive benefits in the form of conferences and
training sessions provided by the licensee, financiers, or others. The
value of these benefits cannot be ascertained.
Estimate of total fees
and charges payable
to the financier in
relation to applying for
the finance.
These fees are payable
by you.
Application/Establishment fees $500
Valuation fees $350
Legal/Documentation/Settlement fees $800
Lenders mortgage insurance premium $
Other $
Total $
These figures are estimates only and the final figures will be shown
in your credit contract or lease. Some or all of these fees may be
paid from the finance proceeds.
These fees are payable only once.
We are not aware of any other fees or charges payable to anyone
else in relation to the application for finance, but the financier may
impose some additional requirements.
[IF ANY FEES ARE DEFINITELY TO BE PAID FROM THE CREDIT
OBTAINED, SPECIFY A REASONABLE ESTIMATE OF THE AMOUNT OF
CREDIT LEFT AFTER PAYING THOSE AMOUNTS AND ANY FEES TO THE
BROKER.]
Referral fee
The credit representative has paid or will pay a referral fee of $
to for referring you to us.
In addition, we receive referrals from a broad range of sources. For
example, we may pay fees to call centre companies, real estate
agents, accountants, or lawyers for referring you to us. These
referral fees are generally small amounts and accord with usual
business practice. These are not fees payable by you.
Using the table below correct the commission amounts.
Estimate of
commission to be
received by us. This
commission is payable
to us for assisting you
to obtain finance.
.65% of the amount of the principal finance amount shortly
after the finance is provided. We estimate this to be $
.15% per annum of your outstanding loan amount owing
payable monthly. We estimate the largest monthly payment to
be $
These amounts are inclusive of GST.
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24 © AAMC Training Group Assessment V3.6

Task 8 – Research
The “2017 Sustainability Report” of the National Australia Bank details the bank's strategies on
Corporate Responsibility and its performance over the said year. It contains the organisation’s
own version of sustainability principles how they have responded to environmental, social,
governance and economic responsibility.
1. Access the above link to the 2017 Sustainability Report, specifically the table
found on pages 9-12. Choose one material theme from each of the three major
criteria for measuring profitability - social, environmental, and economic.
Social Economic Environmental
Improving the customer experience Financial inclusion and resilience Biodiversity loss and ecosystem
degradation
2. In your own words, using the table below complete each of the areas:
a) The impact/s on the different participants in the financial services industry.
(Stakeholder view and relevance to NAB)
b) The practices, strategies, and policies that are incorporated in that material
theme. (How we’re responding)
c) The outcomes have been reported from the incorporation of those material
themes. (Performance)
Three major
criteria for
measuring
profitability
NAB’s version of
SUSTAINABILITY
PRINCIPLES
(Material Theme)
Impact on industry
(Stakeholder View
and Relevance to
NAB)
NAB’s Activities
(How We’re
Responding)
NAB’s Corporate
Sustainability Outcomes
(Performance)
Economic
Financial inclusion
and resilience
Most important as
without this no work
can be accomplished
Improving consumer
experience so that sales
increases
Outcome is increase in
profit
Environmental
Biodiversity loss and
ecosystem degradation
Important to
stakeholder as it
improves
environmental
condition
Taking CSR measures Maintenance of good
environmental condition
Social
Improving the
customer experience
Stakeholder view is
good as without
consumer company
cannot become
successful
Providing good quality
services to consumer
Increase in number of
consumer
3. You and chosen members of your team have been tasked to create your own
corporate sustainability framework,incorporating and supporting triple bottom
line principals. Highlight at least one goal,under each of these headings that you
would like to achieve for the business.
Assessment V3.6 © AAMC Training Group A25

Astute Ability Finance Group's Corporate Responsibility approach found in this
website: http://astuteability.com.au/corporate-responsibility/ is an example
that you may use as a reference.
Areas of the business Sustainability goal
Your customers The sustainability goal for customer is to convert the perception of consumer into
a reality in order to get successful.
Your staff For staff sustainability goals for the staff is to provide a good working
environment so that they work in effective manner.
The community Moreover the sustainability goal for the community is to provide good quality
services so that there is effective likelihood for the company.
The environment The sustainability goal for the environment is to protect environment.
Sustainability goal Economic outcome/s
The sustainability goal for customer is to convert
the perception of consumer into a reality in order to
get successful.
Increase in number of consumer
For staff sustainability goals for the staff is to
provide a good working environment so that they
work in effective manner.
Satisfaction of employees
Moreover the sustainability goal for the community
is to provide good quality services so that there is
effective likelihood for the company.
Increase in goodwill of company
The sustainability goal for the environment is to
protect environment.
Better and overall economic and environment
development
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26 © AAMC Training Group Assessment V3.6

Task 9 – Short Answers
1. List at least three of the main sectors of the financial services industry that may
impact your role as a finance broker.
Funds management
Hedge funds
Private banking
2. In your own words, brieflyexplain the memorandum of understanding between
ASIC and APRA.
Refer to ASIC link to assist you with the answer: https://asic.gov.au/about-
asic/what-we-do/our-role/other-regulators-and-organisations/the-asic-apra-
relationship/
Australian securities and investment commission as ASIC is responsible for promoting a
transparent and efficient cancel system. On the other hand the Australian prudential regulation
authority is a financial system which regulates the potential of the country. The ap is responsible
for the regulatory oversight of the financial entities in order to protect the interest of depositors.
The ASIC and APRA strong and have a collaborative working relationship between both of them.
Dialogue and is being facilitated by a formal engagement structure.
SCENARIO – RESPONSIBLE LENDING CONDUCT OBLIGATIONS
Paul Janes has a tiling business and has earnt $90,000 for the most recent financial
year. His wife Melanie works at Coles Supermarket on a part time basis and she has
been promised the position of Store Manager, likely to earn $20,000 more than
what she is currently earning. The couple are in their mid 40’s and have a son living
at home. They have a current home loan of $250,000. They are seeking a personal
loan from you for an overseas trip of $50,000. The couple have approximately three
credit cards.
3. What are two or more qualifying questions you should ask the clients in the
above scenario to clarify their financial situation?
What changes do you expect in the future in your finances that you wish to plan for?
What would you like to accomplish through financial planning?
4. Why is it important to make reasonable enquiries about a client?
it is very essential to make reasonable enquiries about the client because in case the client is not
providing appropriate information then there a possibility that fraud can occur and it is very
essential to make enquiries relating to the clients condition.
5. Why is it important to take steps to verify a customer’s information?
Assessment V3.6 © AAMC Training Group A27