Financial Services Legislation & Compliance Assessment

Financial Services Legislation & Compliance
Assessment cover sheet
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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
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submission to AAMC Training is your own work and NOT the result of plagiarism or excessive
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referenced appropriately. AAMC Training may conduct independent evaluation checks and
contact your supervisor to discuss your assessment.
Checklist of attachments:
☐ Task 1 – Short answers/Activities
☐ Task 2 – Research questions
☐ Task 3 – Case study questions
Please indicate style of course undertaken:
☐ Face to face Trainer’s name:
☐ Correspondence ☐ Online
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assessment and re-upload your amended case study or written tasks.
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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.
IMPORTANT INSTRUCTIONS
 Your answers to each of the tasks are to be typed into this document and uploaded.
 No assessment word count has been specified 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 break.
 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.
Task 1 – Short Answer Questions
Some of the following questions may require you to research your answers from the internet.
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Financial Services Legislation & Compliance
1. THE ROLE OF ASIC AND ASX AS REGULATORS
a. What role does ASIC play in the Corporate and Financial Services sectors?
The ASIC has an important role to play in terms of the corporate and financial services
which is offered. The role which is performed by ASIC is listed below in details:
 The improvement, maintenance and overall performance of the financial system
is one of the main responsibilities of ASIC.
 The board performs the role of promoting the the confidence of trhe investors
and consumers who are in the financial system.
 The law and regulatory requirements are the responsibility of ASIC and the
procedural requirement is also minimum.
 The board also the responsibility of administering the law and enforce the same
and effectively store and process the informations available.
 The board makes sure that the information which are available regarding different
companies are available to the public as soon as possible.
 Take any action for the purpose of enforcing any law or even giveb effect to law
b. In fulfilling this role, ASIC administers various Acts of Parliament. List five:
1 Life Insurance Act 1995
2 Medical Indemnity (Prudential Supervision and Product
Standards) Act 2003.
3 Australian Securities and Investments Commission Act 2001
4 National Consumer Credit Protection Act 2009
5 Corporations Act 200190
c. Briefly explain the Memorandum of Understanding between ASIC and the ASX.
The administration of the corporation Act falls under the purview of ASIC while on the
other hand ASX is an operator in licensed market and the same is licensed in
australian market. The MOU is formulated in order to ensure that there is cooperation,
sharing of information and mutual assistance between ASIC and ASX. The
administration is on the ASIC while maintaining the performance of the financial
system and also promoting confidence among theb users is on ASX.
2. DISPUTE RESOLUTION
In your own words, briefly explain the IDR and EDR dispute resolution processes for
consumer credit and how this may impact on your business as a broker. You may wish to
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Financial Services Legislation & Compliance
refer a credit guide to assist with your answer. There is one available under Useful Forms,
Documents & Templates in the AAMC Training member’s area..
IDRS
The role of IDRS is to resove the issues of disputes which arises internally
with financial service provider. They are associated with matters of internal
disputes and settles things internally
EDRS
The disputes which arises externally with the financial service providers
can approach the court with the help of EDRS. In case EDRS, assistance of
the court can be taken
3. TYPES OF INFORMATION
Review the section “Identifying the client’s relevant circumstances” in Regulatory Guide
175. This explains the relevant information requirements that financial advisers should
seek before providing advice to clients. In relation to an “investment component’’, list
at least four points that the client’s relevant circumstances may include.
1 The existent product of the client needs to be considered.
2 The potential benefits that may be lost
3 The cost of recommend actions
4 Any othe consequence which is faced by the client due to the switch
4. PRIVACY
a. List the 13 Australian Privacy Principles:
1 Effective management of personal information and bringing about transparency
in information management.
2 The option of using an anonymous name or pseudoname for any transaction is
available to the individual
3 The collection of unsolicited information which would include providing
information for the same.
4 Managing the unsolicited personal information effectively
5 Providing notification for collection of personal information
6 Use or disclosure of personal information
7 Adoption, use or disclosure of government related identifiers
8 Adoption of Direct marketing practices
9 Cross-Border disclosure of personal information
10 Acess to personal infiormation
11 Quality of Personal Information
12 Correction of Personal information
13 Scuring the personal information.
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