FNS50715 Diploma of Superannuation RG 146 Written Assignment

FNS50715 Diploma of Superannuation RG 146 Written Assignment is a summative assessment that evaluates student learning during the course by comparing it against some standard or benchmark. The assessment resource summary includes online quizzes and written assignments. The written assignment consists of 11 questions that aim to assess the skills and knowledge of the learner around the superannuation and financial services industry. The questions require independent research outside of the subject notes. The assignment should be completed using word processing software. Handwritten assignments will not be accepted. The overall result is either 'Satisfactory' or 'Not Yet Satisfactory'.

FNS50715 –Diploma of
Superannuation
RG 146 Written Assignment – Marking
Guide

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Contents
RG 146 Superannuation: Assignment Cover Sheet................................................................3
Question 1............................................................................................................................ 10
Question 2............................................................................................................................ 15
Question 3............................................................................................................................ 16
Question 4............................................................................................................................ 17
Question 5............................................................................................................................ 18
Question 6............................................................................................................................ 20
Question 7............................................................................................................................ 21
Question 8............................................................................................................................ 23
Question 9............................................................................................................................ 26
Question 10.......................................................................................................................... 28
Question 11.......................................................................................................................... 29
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RG 146 Superannuation: Assignment Cover Sheet
Please fill in all details on this page before submission of
your assignment.
Name Michelle Clark
Email [e-mail]
Student number 174954
Deadline date 29/07/2018
Is this your first or second submission? third
Student declaration:
‘Except where I have indicated, the work I am submitting in this
assignment is my own work.’
I acknowledge the declaration:
yes
Overall Result (ASFA marker use only)
Satisfactory or Not Yet Satisfactory NYS
If your submission is Not Yet Satisfactory:
 First attempt:review the feedback on the following pages and resubmit the relevant section/s
of this assignment. Note that you are required to resubmit within 2 weeks.
 Second attempt: subject re-enrolment is required.
Important: keep a soft copy of your assignment as a backup.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Unit details:
 FNSINC401: Apply principles of professional practice to work in the financial
services industry
 FNSINC402: Develop and maintain in-depth knowledge of products and
services used by an organisation or sector
 FNSASICU503: Provide advice in superannuation (generic and specialist
knowledge components only)
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Unit summary:
 FNSINC401: This unit describes the skills and knowledge required to identify
industry professional approaches to procedures, guidelines, policies and
standards, including ethical requirements, and to model and meet
expectations of these in all aspects of work. It applies to individuals who work
in the financial services industry and underpins other specialist units used in
all sectors of the industry. Work functions in the occupational areas where
this unit may be used are subject to regulatory requirements.
 There are no recommended pre-requisite or co-requisite units for this
competency.
 FNSINC402: This unit describes the skills and knowledge required to
develop and maintain an in-depth knowledge of the financial products and
services provided by an organisation, or those an organisation uses, and how
they may be applied to client needs. It applies to individuals who work in
various financial services industry job roles and with a wide range of financial
products or services. No licensing, legislative or certification requirements
apply to this unit.
 There are no recommended pre-requisite or co-requisite units for this
competency.
 FNSASICU503:This unit describes the generic and specialist superannuation
knowledge components which form part of this competency. Together with
the skills unit (which is assessed in ASFA’s Personal Advice: Skills Program),
this unit describes the skills and knowledge required to analyse client needs
and provide advice ethically and professionally on superannuation in
compliance with industry regulations and codes of practice. It addresses the
training requirements of current ASIC and Australian financial services (AFS)
licensing at Tier 1 level. It applies to individuals who use well-developed
interpersonal skills and excellent communication and self-management skills
to perform a specialist advisory role in superannuation. Work functions in the
occupational areas where this unit may be used are subject to regulatory
requirements.
 Advisers providing only general advice are not required by ASIC to
demonstrate particular skills. For those providing general advice, ASIC
states in RG 146 that ‘we expect a licensee to ensure its representatives are
competent to provide general advice. We anticipate that a licensee’s
compliance arrangements will monitor the delivery of any general advice.
Consequently, we do not require a person to have their skills assessed by an
authorised assessor if they are only providing general advice.’
 These subject notes deliver the generic and superannuation specialist
knowledge required for provision of general advice under RG 146.
On successful completion of this subject, you will receive a Statement of
Attainment confirming your ability to provide general advice in
superannuation.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Assessment resource summary
Assessment
methods
Online quiz:Each quiz is linked to a certain number of chapters. They are to be
completed online.
Written assignment:This consists of questions that aim to assess the skills and
knowledge of the learner around the superannuation and financial services
industry. You must upload your completed assignment on the ASFA Learning Hub.
Full details and instructions for completing all assessments are available under
each assessment heading on the ASFA Learning Hub.
Online Quizzes Quiz 1: Online Quiz 1 is based on Chapters 1–4
There are fifteen (15) questions in this quiz. You must achieve
a pass mark of 80% for this quiz. This quiz can be commenced
at any time and you have an unlimited number of attempts to
achieve the pass mark.
Quiz 2: Online Quiz 2 is based on Chapters 5–7
There are fifteen (15) questions in this quiz. You must achieve
a pass mark of 80% for this quiz. This quiz can be commenced
at any time and you have an unlimited number of attempts to
achieve the pass mark.
Quiz 3: Online Quiz 3 is based on Chapters 8–10
There are fifteen (15) questions in this quiz. You must achieve
a pass mark of 80% for this quiz. This quiz can be commenced
at any time and you have an unlimited number of attempts to
achieve the pass mark.
Written
assignment Assessment 4: Written assignment
There are eleven (11) questions in this written assignment.
You must answer all the questions.
Time to be
allocated by
student for
each
assessment
Quiz 1 Approximately one (1) hour
Quiz 2 Approximately one (1) hour
Quiz 3 Approximately one (1) hour
Written
assignment
Approximately 2—3 weeks
Last modified August 2017
Next review Ongoing
About this assessment
This is a summative assessment and contributes to the overall outcome for the
unit. The goal of summative assessment is to evaluate student learning during a
course by comparing it against some standard or benchmark.
This assessment is for students undertaking study/training in the units FNSINC401,
FNSINC402 and FNSASICU503. The purpose of this assessment is to gather
evidence for the identified performance criteria/knowledge or performance
evidence.
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Assessment context
This written assignment is one (1) of four (4) assessment tasks. You must complete
this assignment on your own—refer to the section on Academic Misconduct on page
6. Some questions will require you to undertake independent research outside of
the subject notes.
In this written assignment, you must successfully answer all the questions and
submit your completed assignment via the ASFA Learning Hub. No marks or grades
are allocated for this assessment task—the outcome of your assignment will be
‘Satisfactory’ or ‘Not Yet Satisfactory’.
You are entitled to two (2) attempts for this written assignment. For more
information, refer to ‘Assignment Results and Feedback’ in the Subject Information
section of your subject notes.
This written assignment should be completed in a safe environment of your
choosing (eg. during work, at home, etc.). You will require access to the following:
 Organisational policy, procedures, legislation, regulations and codes of practice
 Financial services and superannuation product information
 Specialist financial services software and data
 Common office equipment, technology, software and consumables.
This assignment is to be completed using word processing software. Hand written
assignments will not be accepted.
Refer to the email communication you received from ASFA Learning at the
commencement of your studies regarding the timeframe for when this assignment
is required to be submitted.
Academic misconduct: Important!
You must NOT copy the work of another student. ASFA takes copying and
plagiarism very seriously. Plagiarism is the presentation of the work of others as
your own. Students must ensure the work they submit for any assessment that
forms part of this subject is their own work. When you submit any form of
assessment as part of this subject you are acknowledging that your assessment is
NOT the result of copying or plagiarism. Penalties may be imposed where there
has been a breach of these conditions.
To display your understanding of the course content, all questions must be
answered in your own words. Copying and pasting directly from the course material
is unacceptable. Likewise, copying and pasting material from the internet and other
external sources and presenting it as your own work is also unacceptable. You must
appropriately reference any material from the internet and other external sources.
Students may study as a group; however, each student is still expected to answer
the questions in their own words. Submission of identical answers to any of the
questions is not acceptable.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Do not loan your assignment to a student for any reason—if another student
plagiarises your assignment (even without your knowledge), your assignment result
may be disregarded and you may be assessed as ‘Not Yet Competent’ in the
subject concerned.
Where the Assessment Committee concludes that copying or plagiarism has
occurred, the results of the students involved in the case may be disregarded and
assessed as ‘Not Yet Competent’ in the subject concerned.
Appeals process
An assessment appeals process is followed in the event that you are not happy with
your result. This includes independent re-assessment of the papers where
measurement of success is not clear. If you think that your assessment result does
not accurately reflect your performance, you may request a re-assessment of your
paper. This must be done within 10 days of receiving results and must be
requested through an ASFA Student Advisor.
Reasonable adjustment
If you are unable to participate in training or complete any assessment due to a
disability you may request a reasonable adjustment. Reasonable adjustment is a
modification made to the learning environment, training or assessment methods
used to enable students with a disability to access and participate in training on the
same basis as those without a disability. The adjustment must be ‘reasonable’ in
that it must not impose unjustifiable hardship on the person or ASFA. If you require
additional assistance, please contact an ASFA Student Adviser.
ASFA marker use only
RESULTS
Question First submission 1st Resubmission 2nd Resubmission 3rd Resubmission
(ASFA
approval
required)
Question
1 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
2 NYS - please resubmit S
Question
3 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
4 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
5 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
6 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
7 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
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Question First submission 1st Resubmission 2nd Resubmission 3rd Resubmission
(ASFA
approval
required)
Question
8 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
9 NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
10
NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
Question
11
NYS - please resubmit NYS - please
resubmit
NYS - please
resubmit
S NYS
ASFA marker feedback
Hi Michelle
Thank you for your resubmission.
I am pleased to advise that your revised answers to questions 8(c), 10(b), 11(c) & 11(d)
have now been assessed as Satisfactory.
Unfortunately, you have still not met the requirements for the following questions and your
overall result remains as Not Yet Satisfactory:
Q1(b)
Q3
Qs 4(a), 4(b)
Q 5(a)
Qs 6(a), 6(b)
Q7(a)
Qs 8(b), 8(e)
Q9(c)
Qs 10(a)
Qs 11(b)
As per ASFA’s Fees and Refunds Policy and Procedure available on ASFA’s website, an
additional fee of $50 now applies for any further resubmissions. An ASFA Student Advisor
will contact you shortly to discuss your options for resubmission and for completing your
course.
Regards
ASFA marker ID AH
Date of assessment 25 July 2018
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
ASFA marker information only
MAKING AND RECORDING THE DECISION
 The student needs to be deemed ‘Satisfactory’ in all assessments to gain
competency.
 You are to provide feedback to the student on their performance and/or the
outcome from their assessment (whether ‘Satisfactory’ or ‘Not Yet Satisfactory’)
 If a student has been assessed as ‘Not Yet Satisfactory’ on their performance in
an assessment, they should be offered information about the appeal process
and/or a reassessment opportunity.
 Using the evidence gathered and the rules of evidence (validity, sufficiency,
currency and authenticity) determine the final outcome for the student. If you
are in doubt, gather further evidence to help guide your decision.
 Assess the students on what you observe during the assessment period, not on
their actions before or after the assessment.
 If you are marking the student ‘Not Yet Competent’, ensure you outline why you
have made this decision, and provide advice on how the student can improve
their skills/knowledge prior to reassessment; or if the re-assessment
opportunities have lapsed, provide advice on appeals and or re-enrolment.
 Record the assessment results onto the Assessment Summary/Cover Sheet,
ensuring each section is complete.
 Attach all evidence (projects/checklists/tests, etc) to this form.
 Submit the completed Assessment Summary/Cover sheet and associated
evidence for processing as per ASFA’s procedures.
RE-ASSESSMENTS
 Re-assessments are to be undertaken on a different date. This is to allow an
opportunity for the student to undergo further training as required, and to
ensure the student is assessed on their ability to demonstrate their actual skills
and knowledge—not just their ability to answer questions/perform actions based
on immediate advice of the marker.
Providing feedback
 Provide constructive feedback to the student on their performance during the
assessment period. Do not make any comments on actions undertaken prior or
after the assessment period.
 Provide the student with:
 Their assessment result.
 Clear and constructive feedback based on the assessment decision.
 The reasons underpinning your assessment decision.
 Information on ways of overcoming any identified gaps in competency
revealed by the assessment the opportunity to discuss the assessment
process and outcome information on reassessment and the appeals
processes.
 Clearly state that the learner can have an opportunity for reassessment if
appropriate or requested by the candidate.
 Information on appeal process.
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Assessment information about Questions 1 to 3
The first section of this written assignment (Questions 1 to 3) focuses on workplace
approaches and analysis of procedures, guidelines, polices and standards,
legislation, regulations, codes of conduct/ethics, customer service and
administration policies and procedures, and other related organisational issues.
The assessment of these workplace elements are required by the competencies
that underpin this assignment. Some questions will require a significant
amount of independent internet and/or workplace-based research that
will require you to apply your knowledge to your organisation (or one of
your choosing).
The format of the questions is short-answer and longer discussion/analysis. You
must answer ALL the questions in this assignment.
Question 1
This question assesses the competencies:
 FNSINC401: Apply principles of professional practice to work in the financial
services industry
 FNSASICU503: Provide advice in superannuation (generic and specialist
knowledge)
Question 1 focuses on the main sectors of the financial services industry and its
interrelationship, specifically, with the superannuation industry. It also covers the
economic environment.
a. Three sectors of the financial services industry have been outlined below
(Banking, Insurance and Financial Planning). Briefly outline the role and
responsibilities of each of these sectors. Then explain the interrelationship
of each sector with the superannuation sector.
(Interrelationship: The way in which two or more things or people are
connected and affect one another).
Present your answer in the table below.
Main sector 1 Banking
Role and
responsibilities of
the sector
The main role and the responsibilities of the banking sector involves
taking care of the savings and the deposits that have been made by the
customers and regulating the money in the market with the help of
making investments in the market. The money that is deposited by the
citizens and safeguarded and accordingly pay interest for the same.
How is the sector
interrelated with
the superannuation
sector?
The sector is associated with the superannuation sector due to the fact
that the money that is accumulatedin the superannuation account of a
citizen is transferred directly to the bank account that is linked and
therefore in this way both of them are inter-related.
Main sector 2 Insurance
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Role and
responsibilities of
the sector
The insurance sector has the role of safeguarding the life of an
individual from any kind of unprecedented events and accidents and
therefore the insurance sector provides various kinds of insurances to
their customers with the help of which the customerswould be
financially remunerated in case of accidents and unprecedented events
and therefore getting financial remunerationwould be helpful in
financially safeguarding the life of an individual.
How is the sector
interrelated with
the superannuation
sector?
This sector is inter-related to superannuation sector because of the fact
that superannuation sector provides insurance with the help of which
the customerscan get assistance from the insurance facility.
Main sector 3 Financial planning
Role and
responsibilities of
the sector
Financial planning is helpful in the development of better plans and
policies with the help of which the customers can be advised in a better
way with respect to making investments with the help of which the
customers would be able to increase their returns and in this manner
would be helpful in the development of better investment portfolio.
How is the sector
interrelated with
the superannuation
sector?
Financial planning is associated with taking care of and constructing
plans and policies with the help of which the investors can have a better
idea in accordance to better investments can be attained. Financial
planning is helpful in the development of the superannuation sector as
well and therefore it is helpful in the development of the sector as well.
Satisfactory
This shows a good understanding of the main sectors of the financial services
industry and how they interrelate with the superannuation sector. Well done.
b. Provide three (3) specificexternal forces (listed below) that impact on the
financial services industry.
(External force: Those pressures or factors outside of the organisation’s
influence ie. changes in the economic, social or political climate).
Present your answer in the table below.
External force Give a specific example to explain the impact on financial
services industry
Economic The changes in the economy has an adverse effect on the financial
services industry as it is seen that changes in the rate of inflation and
other factors can have an impact on the financial services industry.
Social The changes in the social structure and the mindset can have an
impact on the financial services industry because of the fact that
changes in the mindset and the culture of the society can compel the
industry to make changes as well.
Political The changes in the policies and laws and the stability of the political
authority and government can have an impact on the financial
services industry as it is seen thatthis could hamper the smooth
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functioning of the process.
Not Yet Satisfactory
This is a good start. However, much more detail is needed to explain the impact of
economic, social and political external forces. Specific examples are needed. Please
refer to comments in the margin for further direction and resubmit your answers in
the table below.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Q1 (b) - Resubmission required
External force Give a specific example to explain the impact on financial
services industry
Economic The changes that are taking place in the economy has been due to
various factors and it is seen that changes in the rate of inflation has
been one of the key factors. It is seen that the changes in the inflation
rate has been due to the changes that are taking place in a country
due to the changes in the government rules and regulations would lead
to rate of inflation as the changes in the rules and regulations have led
to the rise in the demand and supply in the market and therefore
inflation rate has an essential impact.
Social The social impact on the financial service industry has been due to the
changes in the social structure and the mind-set of the society and the
individuals as it is seen that changes in the tastes and preferences of
the consumers and the society leads to an impact on the financial
service industry.
Political There are several political aspects that have an impact on the financial
service industry and one of the aspects have been that political and
legislative power which for instance has an impact on the free trade
deal among Australia and other countries. This can have an impact on
the financial service industry.
Not Yet Satisfactory
Unfortunately, you have still not met requirements for this question. Your answers
lack specific detail to show a clear understanding of the impact of economic, social
and political external forces. Specific examples are needed. Please refer to
additional comments in the margin for further direction and resubmit your answers
in the table below.
Q1 (b) – 2nd Resubmission attempt
External force Give a specific example to explain the impact on financial
services industry
Economic The changes that have been taking place have been due to the change
in the inflation rate, which is taking place due to the rise in the
purchasing power of the consumers. The changes that have been
taking place within the government rules and regulations like the tax
reforms and changes in the import and export duties have been the
other issues.
Social The change in the mindset and the taste and preferences of the
consumers is the social factor and this has taken place as the mindset
of the consumers changes with the advent of time and the
development of new and innovative services and products in the
economy.
Political The political factor has been changes that have been taking place in
the legislative and political power and this can be explained with the
help of the Free Deals Act that was constructed by the Australian
Government in order to undertake free trading deals among Australia
and various other countries.
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Not Yet Satisfactory
You are getting there but your response to the last part of the question was
confused and did not meet requirements. Can you think of a significant regulation
change made by an Australian Government which has impacted the
superannuation industry? There have been plenty.
Please revise and resubmit in the space below.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Q1 (b) – 3rd Resubmission attempt
External force Give a specific example to explain the impact on financial
services industry
Political The political factor has been changes that have been taking place in
the legislative and political power and this can be explained with the
Financial Services Reforms Act 2002 that was constructed by the
Australian Government in order take care of all the financial acts and
provide standardisation within the financial services industry. With
respect to FSR, in order to operate a superannuation fund the trustee
needs to have a licence to run a fund and the individuals within the
funds require a licence to perform their job
c. Part 1: Identify and explain the three (3) ‘Triple Bottom Line Principles’(TBL).
Part 2: What is the purpose of TBL reporting?
Part 3: Give a specific example of how a super fund or the organisation you
work for might use the TBL principles in work planning?
(Note: Refer to sources within your own organisation, or undertake
research on the internet, to answer this question.)
The three principles of Triple Bottom Line are People, Planet and Profit.
In this respect, People refers to taking care of the social equity bottom line by taking care of the
society and the other aspects with the help of which people can be satisfied as well.
Planet: The mode of taking care of the planet refers to looking after the environment and thereby
taking plans and policies with the help of which the environment can be safeguarded and
accordingly improvement of the environment is possible.
Profit: The profit looks to address the economic bottom line and therefore tries to take care of the
policies and the aspects with the help of which all the elements can be taken care of and an
effective and better economy can be formed with the help of which overall development is
possible.
The purpose of TBH reporting assists in assessing their performance in a broader perspective in
order to establish a greater business value.
The process of TBH can be used for the purpose of planning process and therefore the super fund
tries to do the same by looking into the environment with the help of better and effective
planning. Plans and policies need to be constructed with respect to the society as well with the
help of which the people and the society would be satisfied and therefore effective planning is
possible. Profit is even taken into consideration and therefore in order to enhance the same it is
essential to assess the overall economy and thereby plan and construct policies with the help of
which profit and the economy of the firm can be maintained.
Satisfactory
d. Name the four (4) economic objectives of the federal government and give a
definition of each objective.
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Present your answer in the table below.
Economic objective Definition
1. Economic Growth This looks to address the fact that federal government does
not only take care of the overall output but even looks to take
care of the development of the per capita basis.
2. High and stable levels of
employment
The aim of the objective has been to enhance the stability of
employment and the manufacturing at a level that is close to
the overall potential of the country.
3.Price Stability Inflation leads to inequities and thereby leads to the
discouragement towards investment. In a consistent manner,
stable prices assists in the creation of an environment within
which the other economic goals are attained more easily
4.International Financial
equilibrium
The rise in the significance of international trade and the fund
outflow in the international capital market creates a strong
incentive in order to maintain international financial
equilibrium.
Satisfactory
e. For each economic objective you identified in part (d) above, give a brief
explanation of the impact that a contractionary phase in the business cycle
would have on that economic objective.
Present your answer in the table below.
Economic objective Impact of a contractionary phase in the business
cycle
1. Economic Growth The economic growth gets hampered and therefore
development is not possible.
2. High and stable levels of
employment
The level of employment reduces as the unemployment rate
increases leading to an impact on the economy.
3. Price Stability The stability of the price gets hampered and therefore prices
fluctuate
4. International Financial
equilibrium
The International Financial equilibrium at the time of
contractionary phase gets lowered as the equilibrium is not
existent as there is a fluctuation of price that leads to
fluctuations in the currency value. This lowers the extent of
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
international financial equilibrium.
Satisfactory
f. How is fiscal policy implemented by the federal government and Outline how
fiscal policy may be used to counteract a downturn in the economy.
Fiscal policy plays a fundamental role in the counteraction of the economic downturn as it is
seen that development of better fiscal plans and policies are helpful in the development of
economy as a whole. The government has the plan of lowering the rates of interest with the
help of which individualswould be interested in taking loans and advancements, which would
be helpful in the circulation of money and this would be helpful in the counteractingthe
economic downturn.
Satisfactory
g. How is monetary policy implemented? Give one (1) example of how the
Reserve Bank of Australia (RBA) might use monetary policy to influence
economic growth.
The monetary policies are incorporated by the government by constructing the policies and
accordingly incorporating the same in the economy of the country. The Reserve bank of
Australia makes use of the monetary policy in order to influence the economic growth by
maintaining the scenarios in the money market in order to keep the cash rate at the position
or near the functional target that is decided by the government. The cash rate is the rate that
is incurred from the overnight loans among the financial intermediaries. This has a powerful
influence on the other rates of interest and the therefore forms the base over which the
framework of the rates of interest in which the economy is constructed. The alterations in the
monetary policy addresses a change in the operatingtarget for the cash rate and therefore a
shift in the framework of the rate of interest that is prevalent in the financial system.
Satisfactory
Note: The answer box above expands automatically
h. Define ‘inflation’. Explain how inflation can be considered to have both a
positive and negative effect depending on who is the market participant.
Present your answer in the table below.
Definition of inflation Inflation is looked upon to be the rate at which the normal level of
prices for the services and the goods has been increasing and
thereby the purchasing power of the currency falls.
Give one (1) example of
who gains from inflation,
and provide a brief
explanation why.
An instance is seen that the manufacturers can charge more for
their products and thereby the prices can be increased. The
suppliers can intentionally hold the supplies from the market with
the help of which the prices can rise by a favorable margin.
Give one (1) example of
who loses from inflation,
The consumers face losses for the purpose of inflation as it is seen
that prices of the products and the services would be increased
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and provide a brief
explanation why.
which would lower their savings and the investments on the
products would increase which would have an impact on the
income.
Satisfactory
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
i. Explain how movements in the Australian dollar (AUD) affect each of the
following factors.
Factor Explanation
1. Australia’s foreign
debt
The movement of the Australian dollars decreases the Australia’s
foreign debt.
2. Imports into Australia There is a rise in the level of imports into Australia with the
movement of the Australian dollar.
3. Exports out of
Australia
Exports out of Australia becomes less competitive.
Satisfactory
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Question 2
Question 2 focuses on the operation of the financial markets and the types of
products traded in the market.
a. The concept of a ‘financial product’ is central to the operation of Chapter 7 of
the Corporations Act 2001 (Corporations Act). Undertake independent
research to answer the following questions about financial products:
 Part 1: What is the general definition of a ‘financial product’ as per the
Corporations Act?
 Part 2:The Corporations Actoutlines the specific inclusions and exclusions of
what constitutes a financial product. Research which sections of the
Corporations Act includes these inclusions and exclusions?
Note to students: Only include the sections of the Act for the second part of
this question.
Financial product is a facility with the help of which or with the help of acquisitionof which a
person undertakes financial investments, controls the financial risk and the even undertakes
non-cash payments.
The section that are includes inclusion are Section 764 A, and the section that includes
exclusions is Section 765 A.
Satisfactory
b. Complete the table below to build a summary of the traditional asset classes.
Major
asset
classes
Definition Debt or equity
asset?
Market traded in Tax treatment
Cash Cash is the currency
that is used for the
purpose of
makingtransactions
Debt Economy In the books of
account
Fixed
interest
Fixed interest is the
rate of interest over
a liability like the
loan and mortgage,
which remains the
same for the whole
team of the loan for
the section of the
term.
Debt Debt market From the loan
Propert
y
The real estate and
the properties for the
purpose of making
investments and for
Equity Real Estate The tax is treated
from the property
rate.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
the purpose of living
Shares The shares refer to
the shares that are
issued by the
companies in order
to gain fund from the
market.
Equities Share market From the income
statement
Not Yet Satisfactory
Overall this is a very good effort, but unfortunately there were some areas that
were incorrect or needed more detail. Please refer to the comments in the margin
and revise to include the missing details in the table below.
Q2 (b) - Resubmission required
Major asset
classes
Market traded in Tax treatment
Cash Cash Market Income tax treatment
Fixed
interest
Fixed Interest Traded Market Interest income tax
Property Real Estate Property income tax
Shares Share market Capital gains tax
Satisfactory
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Question 3
This question assesses the competency FNSINC401: Apply principles of professional
practice to work in the financial services industry.
Question 3 focuses on environmental/sustainability legislation and work practices in
the context of the superannuation industry.
Environmental and sustainability legislation, and techniques of sustainability
management, are issues of importance that must be addressed by all company
boards, including superannuation funds.
Conduct independent research into each of the following areas and provide
your analysis in the answer box below.
Note: You will need access to the internet for this task. Ensure that you use your
own words when answering these questions—do not copy slabs of content from
external sources. Provide a list of external sources used.
Competency Your analysis
Explain how super
funds incorporate
environmental and/or
sustainability
legislation into their
operations.
The super funds incorporate environmental and sustainabilitywithin their
operations with the help of diversity taking care of the climate change and
developing employee relation.
External sources used The sources that have been used includes the use of internet and the
changes that are taking place in the market.
Provide one
advantage that
sustainability provides
to a business.
The advantage that sustainability provides to the business is that all the
aspects have been maintainedand thereby the development of the business
is possible.
There are various
pieces of legislation
that govern how
businesses in Australia
interact with their
suppliers, customers
and other businesses.
List two (2) types of
such legislation.
The two legislations are:
Privacy Laws
Consumer Laws
Not Yet Satisfactory
Unfortunately, you have not met requirements for the first three parts of this
question (highlighted).
The first question requires you to research how environment and sustainability
practices are incorporated into fund operations. You need to comment on the
operations of a fund and consider what they might have put in place in the interest
of environmental and sustainable practices. Eg. Do all funds still issue paper-based
23

FNS50715 – Diploma of Superannuation (RG 146 assignment)
statements? What might they do instead? What other sustainable practices might
funds have in place?
Please refer to feedback in the margins for further direction and revise your
answers in the space below.
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Written Assignment – Marking Guide
Q3 - Resubmission required
Competency Your analysis
Explain how super
funds incorporate
environmental and/or
sustainability
legislation into their
operations.
The super funds incorporate environmental legislation into their operations and
this is done by creating plans and policies with the help of which awareness
regarding the environmental aspect and how to improve the environment can
be maintained.
External sources used The sources that have been used is inclusive of the internet in order to have an
idea about all the aspects. The source is used is given as follows:
https://www.aonhewitt.com.au/Home/Hot-topics/Impact-of-environmental-
social-factors-on-super
Provide one
advantage that
sustainability provides
to a business.
The advantage provided by sustainability is inclusive of the reduction in the
cost related to the operational activities, enhancement in the efficiency level of
organizational activities and the development of the processes.
Not Yet Satisfactory
You are almost there but have still not met requirements for the first part of this
question (highlighted).
Make sure you use the source listed to research how environment and
sustainability practices are incorporated into fund operations. It clearly explains
several environmental and sustainable practices that have been incorporated at
AON.
Please refer to feedback in the margins for further direction and revise your answer
in the space below.
Q3 – 2nd Resubmission attempt
Competency Your analysis
Explain how super
funds incorporate
environmental and/or
sustainability
legislation into their
operations.
Super funds have to incorporate sustainability and environmental legislation
within their activities and it is seen that they are committed to implement social,
environmental and governance (ESG) issues within their investment decision
making with the help of which they can ensure that they are making use of
finite sources.
Not Yet Satisfactory
Unfortunately, you have not addressed any of the points or suggestions given in
the feedback and therefore you have still not met requirements for this question.
Please refer to previous feedback given and revise your answer in the space below.
Q3 – 3rd Resubmission attempt
25

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Competency Your analysis
Explain how super
funds incorporate
environmental and/or
sustainability
legislation into their
operations.
The super funds incorporate environmental or sustainability legislation within
their operation with the help of individual commitment and responsibility in the
policy and any related environmental targets and objectives. Environmental
legislation is incorporated even with the help of energy and water conservation
plans and policies within their business activities and this would be helpful in
the attainment of the corporate business results.
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Question 4
This question allows you to identify some of the policies and procedures relevant to
a superannuation fund’s day to day operations in relation to administration and
customer service.
a. Complete the following table to explain the features of a superannuation
fund’s customer engagement activities.
Provide three (3) examples of
documents or other material which a
superannuation fund is required by
legislation to provide to members and
pensioners.
The three examples are:
1. A copy of the Information Sheet
2. Disclosures of the credit ratings
3. Credit Quote
Provide two (2) examples of material
which a superannuation fund is
permitted to provide to members when
they exit the fund either by rolling over
their benefit or cashing in their benefit?
1. Document of the insurance cover
2. Value of the accounts and the benefits in the
account
Where could a member find details of
the fund’s privacy statement and
dispute resolution system
Superannuation Complaints Tribunal
The fund’s administrators fail to
distribute the periodical statement to
members within the legislated
timeframe.
What would be the impact on the trustee
and the fund’s administration firm?
There would be an adverse effect on the trustee and the
fund’s administration firm as there would be discrepancies
and the trustees would face problem in the process of
making decisions.
The Corporations Act now requires
trustees to label the fund’s investment
choices in a standard way and include
this information in the fund’s PDS.
What is this legislation standard and
what does this standardisation enable
members to do?
The product dashboard provides the members with the
vital information of:
the return target
the returns for previous financial years
a comparison between the return target and the returns
for previous financial years
the level of investment risk, and
Statement of fees and other costs.
Not Yet Satisfactory
Unfortunately, your answersto all questions in this table have not met requirements
and will need to be revised. Please refer to comments in the margin to understand
what further information is required and resubmit your answers in the space below.
Q4 (a) - Resubmission required
Provide three (3) examples of
documents or other material which a
superannuation fund is required by
legislation to provide to members and
pensioners.
The three documents are:
 Information about the funds
 Newsletters in accordance to the superannuation
fund
 Member forms and guides in relation to the
27

FNS50715 – Diploma of Superannuation (RG 146 assignment)
superannuation funds.
Provide two (2) examples of material
which a superannuation fund is
permitted to provide to members when
they exit the fund either by rolling over
their benefit or cashing in their benefit?
The materials which a superannuation is permitted to
provide the members are:
 The contact detail of the fund
 The amount of death benefit before they left the
fund
Where could a member find details of
the fund’s privacy statement and
dispute resolution system
Privacy management plan
The fund’s administrators fail to
distribute the periodical statement to
members within the legislated
timeframe.
What would be the impact on the trustee
and the fund’s administration firm?
The impact it would have on the administration firm and
the trustees have been that the members can file a suit
against the company and incase of any loss the member
will not be held liable but the company has to bear the
risk.
The Corporations Act now requires
trustees to label the fund’s investment
choices in a standard way and include
this information in the fund’s PDS.
What is this legislation standard and
what does this standardisation enable
members to do?
The standard is known to be PDSregulation and this have
assisted and enabled the fund to provide online
information that would replicate the needs of the members
and their stages of life.
Not Yet Satisfactory
Unfortunately,you have still not met requirements and most questions need to be
revised. Please refer to additional comments in the margin to understand what
further information is required and resubmit your answers in the space below.
Q4 (a) – 2nd Resubmission attempt
Provide three (3) examples of
documents or other material which a
superannuation fund is required by
legislation to provide to members and
pensioners.
The documents are:
The Disclosure Information
The charging of the fees and the attributing costs among
the various classes of beneficiaries
The funding and solvency requirements for
superannuation funds
Where could a member find details of
the fund’s privacy statement and
dispute resolution system
AFS Licensee’s website
The fund’s administrators fail to
distribute the periodical statement to
members within the legislated
timeframe.
What would be the impact on the trustee
and the fund’s administration firm?
It is seen that there has been a breach here and therefore
penalties would be implied on the administrator of the
company. The penalty would be implied by the ASIC.
The Corporations Act now requires
trustees to label the fund’s investment
choices in a standard way and include
this information in the fund’s PDS.
What is this legislation standard and
The legislation standard that is applicable is Australian
Financial Services License and this enables the members
to sell, deal in or advise on financial products
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what does this standardisation enable
members to do?
Not Yet Satisfactory
Unfortunately, your answers have still not met requirements. Please refer to
previous feedback and resubmit in the space below.
29

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Q4 (a) – 3rd Resubmission attempt
Provide three (3) examples of
documents or other material which a
superannuation fund is required by
legislation to provide to members and
pensioners.
The documents are:
The Disclosure Information
The charging of the fees and the attributing costs among
the various classes of beneficiaries
The funding and solvency requirements for
superannuation funds
Where could a member find details of
the fund’s privacy statement and
dispute resolution system
AFS Licensee’s website
The fund’s administrators fail to
distribute the periodical statement to
members within the legislated
timeframe.
What would be the impact on the trustee
and the fund’s administration firm?
It is seen that there has been a breach here and therefore
administrative penalties would be implied on the
administrator of the company. The penalty would be
implied by the ASIC and these penalties are 20 penalty
units for the operating standards, 10 penalty units for
accounts and statements.
The Corporations Act now requires
trustees to label the fund’s investment
choices in a standard way and include
this information in the fund’s PDS.
What is this legislation standard and
what does this standardisation enable
members to do?
The legislation standard that is applicable is Australian
Financial Services License and this enables the members
to sell, deal in or advise on financial products
b. An employee of any business needs to carry out her or his professional duties
and obligations with the highest principles of integrity, ethics and honesty
amongst other things when dealing with customers externally and internally.
Provide three specific (3) examples of how you maintain these standards in your
role:
Note: you may need to do some external research outside of your subject notes
to answer this question.
Example 1: These standards are maintained with the help of frequent
training programs with the help of which interactions with
the customers are made in an effective manner.
Example 2: Taking feedback from the client and accordingly taking
measures and steps.
Example 3: Complying with the industrial benchmarks.
Not Yet Satisfactory
Unfortunately, your responses are too general and do not show how you maintain
integrity, ethical and honesty standards in your role when dealing with customers.
Clearer evidence of how you apply these principles is needed. Refer to comments
in the margin for further direction.
Please revise to give 3 specific examples to show how you meet these
requirements and resubmit in the space below.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Q4 (b) - Resubmission required
Example 1: Employee training in accordance to ethics, honesty and
better communication activities with the customers.
Example 2: Collecting feedback from the customers in order to gain
knowledge whether the services they receive have been
ethical and honest
Example 3: Meeting the compliance rules and regulations of the
business that is looking forward to the maintenance of
ethics, integrity and honesty.
Not Yet Satisfactory
Unfortunately, your responses are still too general and do not show how you
maintain integrity, ethical and honesty standards in your role when dealing with
customers.You have essentially just reworded your first two answers without
adding any specific detail. Refer to previous and additional comments in the margin
for further direction.
Please revise to give three (3) specific examples to show how you meet these
requirements and resubmit in the space below.
Q4 (b) – 2nd Resubmission attempt
Example 1: Professional Standards of
Financial Advisers Act 2017
Example 2: Financial Adviser Standards
and Ethics Authority
Example 3: ASIC
Not Yet Satisfactory
Unfortunately, your examples do not meet requirements. Please refer to previous
feedback and resubmit in the space below.
Q4 (b) – 3rd Resubmission attempt
Example 1: Being punctual and thereby
adhering to all the demands and the
desires of the customers and thereby
satisfying them.
Example 2: Working with a positive
attitude and being polite and pleasant
and take on complex tasks with a
cheerful attitude.
Example 3: Providing integration in the
management practices with the help of
good customer service which would be
helpful in satisfying the customers.
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Question 5
This question assesses the competency FNSINC402: Develop and maintain in-depth
knowledge of products and services used by an organisation or sector.
a. Using the superannuation fund, you work for, or another superannuation fund
of your choice, complete the following tasks:
1. Select three (3) products the superannuation fund offers to its members. One
of those products must be a MySuper product.
2. Document the purpose and characteristics of each product.
3. Document the compliance requirements for each product and how the
member must be presented with the necessary information and
documentation. (Hint: Look at the type of documents it must make available
to new and existing members, etc.)
4. Document the client/member characteristics that best suit each product. For
instance, are some products geared to those nearing retirement?
5. Does the fund have a different marketing approach to promoting its MySuper
product in comparison to its other products? If so, explain how it differs.
Name of fund:
AustralianSuper
Select three (3) products the superannuation fund offers to its members. One of those
products must be a MySuper product.
A product in this instance could mean either an accumulation fund, a pension
product (or TTR) or an insurance product etc…
1. Hotplus Personal Superannuation Plan
2. Cbus Personal Super
3. AustSafe Super Personal Super
Document the purpose and characteristics of each product:
The first product offers effective returns and the fees structure is low.
The second product is a growth personal super which offers effective returns and
the risk level is high and the return is higher as well.
It is a balanced product and the product has higher returns with lower risk and the
product has been performing in an effective manner.
Document the compliance requirements for each product and how the member must be
presented with the necessary information and documentation. (Hint: Look at the type of
documents it must make available to new and existing members, etc.)
1. The product disclosure statement is provided with the help of which all the necessary
33

FNS50715 – Diploma of Superannuation (RG 146 assignment)
informationhas been provided
2. Credit quote is givenwith the help of which all the fees related to aspects are
mentioned.
3. The rules and the regulations are provided and accordingly the tools that are used are
compliant with the help of which proper understanding and knowledge would be
known to the investor.
Document the client/member characteristics that best suit each product. For instance, are
some products geared to those nearing retirement?
1. This product has gearing for the purpose of retirement.
2. The return from the product is ideal and provides better income.
3. The risk is low and insurance coverage is even available.
Does the fund you have chosen, have a different marketing approach to promoting its
MySuper product in comparison to its other products? If so, explain how it differs.
The products that have been taken into consideration has similar marketing
approach as the products are sold in the same economy but the process of
advertisements for the products are different.
Not Yet Satisfactory
It is important that you select one super fund to answer this question and then
select 3 products offered by this fund to answer the remaining questions.
All parts of this table need to be revised. Please refer to feedback in the margin for
further direction and resubmit all answers in the table below.
Q5 (a) - Resubmission required
Name of fund:
AustralianSuper
Select three (3) products the superannuation fund offers to its members. One of those
products must be a MySuper product.
A product in this instance could mean either an accumulation fund, a pension
product (or TTR) or an insurance product etc…
1. Company Funds
2. Retail Funds
3. MYSuper Funds
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Document the purpose and characteristics of each product:
1. The purpose of this fund is to provide an extensive idea about the funds about the
company and the feature has been that it provides adequate funding to the companies
with the help of which they can make use to improve their operational activities.
2. Retail Funds provides investment in the retail sector. The key feature of the fund has
been that investments are made in the retail sector with the help of which returns can
be attained.
3. MySuper Fund provides low cost products to their customers and the feature of the
product is that effective returns are attained with the help of low investments.
Document the compliance requirements for each product and how the member must be
presented with the necessary information and documentation. (Hint: Look at the type of
documents it must make available to new and existing members, etc.)
1. The product disclosure statement
2. Providing a booklet regarding the choice of the superannuation funds
3. Providing website and telephone assistance to answer the enquiries about the choice
of the superannuation funds.
Document the client/member characteristics that best suit each product. For instance, are
some products geared to those nearing retirement?
1. Increases return with the help of Company Funds
2. Moderate returns with the help of Retail Funds
3. Retirement assistance with the help of MySuper
Does the fund you have chosen, have a different marketing approach to promoting its
MySuper product in comparison to its other products? If so, explain how it differs.
They have a different marketing approach as they provide additional interests to the
customers who are purchasing the product.
Not Yet Satisfactory
You have still not met requirements. The starting point is to identify three (3)
products offered by Australian Super and give specific answers for each product. All
parts of this table need to be revised. Please refer to both previous and additional
feedback in the margin for further direction and resubmit in the table below.
Q5 (a) – 2nd Resubmission attempt
Name of fund:
Australian Super
Select three (3) products the superannuation fund offers to its members. One of those
35

FNS50715 – Diploma of Superannuation (RG 146 assignment)
products must be a MySuper product.
A product in this instance could mean either an accumulation fund, a pension
product (or TTR) or an insurance product etc…
1. Pre-Mixed Australian Super
2. DIY Australian Super
3. My Super
Document the purpose and characteristics of each product:
1. Pre-Mixed Australian Super : These options invest in different combinations of assets
like shares, property and cash. These are low risked fund.
2. DIY Australian Super: This option lets one choose which asset classes they want to
invest in, and how much one wants to invest in each. This option consists of single
asset classes that one can choose from to create their own investment mix. This are
medium rate risked.
3. My Super: This option gives the greatest control. The investment is done in various
range of listed securities and the extent of risk and return is high.
Document the compliance requirements for each product and how the member must be
presented with the necessary information and documentation. (Hint: Look at the type of
documents it must make available to new and existing members, etc.)
1. The product disclosure statement
2. Portfolio Holdings Disclosure
3. Product Dashboard
Document the client/member characteristics that best suit each product. For instance, are
some products geared to those nearing retirement?
1. To beat CPI by more than 4% pa over the medium to longer term.
2. To beat the S&P/ASX 300 Accumulation Index over the medium to long term.
3. To make investments in shares that would increase their extent of income and shares.
Does the fund you have chosen, have a different marketing approach to promoting its
MySuper product in comparison to its other products? If so, explain how it differs.
The selected fund has a different marketing approach due to the fact that the MySuper is
flexible in nature and therefore the investors can change their investment product within their
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portfolio as and when required.
Not Yet Satisfactory
You are getting there. However, some of your responses are still a bit confused and
show a lack of understanding of the differences in these three (3) products. Please
refer to feedback in the margins to revise and resubmit answers to the two
questions in the table below.
Q5 (a) – 3rd Resubmission attempt
Document the purpose and characteristics of each product:
1. Pre-Mixed Australian Super: These options invest in different combinations of assets like
shares, property and cash. The purpose of pre-mixed offering has been to provide the
customers with an investment portfolio that would offer effective returns even making a
selection of the products individually.
2. DIY Australian Super: This option lets one choose which asset classes they want to
invest in, and how much one wants to invest in each. This option consists of single
asset classes that one can choose from to create their own investment mix. This is
medium rate risked.
3. My Super: The purpose of My Super has been to provide secured investment that
would be helpful in keeping a secured future life and sustainable amount of income
from the investments.
Document the client/member characteristics that best suit each product. For instance, are
some products geared to those nearing retirement?
1. One who are looking for moderate earnings with low level of risk
2. One who is looking to select their assets on their own and is looking for returns
according to their choice
3. Planning for retirement.
b. List two (2) other funds which could be considered competitors to your chosen
fund. Give a brief justification why you believe them to be competitors to your
fund.
The two other funds are:
AMP Superannuation Savings Trust
Commonwealth Essential Super
These two products have the ability to provide similar returns with the help of which the risk
would be lower and the level of returns would be high.
Satisfactory
37

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Assessment information about Questions 6 to 11
The second part of this written assignment, Questions 6 to 11 will focus specifically
on specialist superannuation knowledge, and cover the competency FNSASICU503:
Provide advice in superannuation (specialist knowledge). The format of the
questions are short-answer and calculation-based.
Question 6
This question assesses the competency FNSASICU503: Provide advice in
superannuation (specialist knowledge)
Goddrick is a member of the Seniors Super Fund. He has made a complaint to the
trustees of the fund in relation to the decision not to award his claim for a TPD
benefit. As a consequence, he makes a complaint to the fund, arguing that he
should be awarded the benefits of the claim as he thinks he meets the definition of
TPD in the policy.
a. Briefly outline the procedure Seniors Super Fund should have in place for
handling this complaint from Goddrick.
The process that would be taken consideration is contacting the super fund and the financial
adviser about the complaint and thereafter contact the external dispute resolution scheme.
The superannuation complaints tribunal and the financial ombudsman service are even
provided with the help of which all the issues that are pertinent can be resolved.
Not Yet Satisfactory
This question requires you to outline the procedure (steps) that the fund
should have in place for handling this complaint (i.e. from when it is first
received to what steps to follow for resolving and responding to the
complaint). To get you started the first step might be ‘Register the
complaint’.
Please revise and resubmit your answer in the box below.
Q6 (a) - Resubmission required
The procedure that would be followed is given as follows:
 check the definition of disability in both the fund’s trust deed or
governing
 rules, and the contract with the insurer
 give the member all information to assist them to provide
evidence relevantto their claim
 advise the member that the claims process is lengthy and may
take sometime
 provide the member a reasonable period of time to provide
evidence relevant totheir claim
 verify that the member is actually insured
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 gather job information and date last worked from the employer
 provide the insurer (if there is one) with all relevant information
(includingthe completed claim forms and medical reports)
 arrange for any further medical assessment of the claimant which
the trusteeor insurer may require
Not Yet Satisfactory
These are not procedures for handling a complaint. Please refer to
previous feedback and resubmit in the space below.
Note: The answer box above expands automatically
Q6 (a) – 2nd Resubmission attempt
The process involves:
Determining the complaint in the accordance to the Superannuation
Complaints Tribunal and thereafter manage and deal with the
establishment of the arrangements in order to manage the complaints
and inquiries. This would be helpful in managing the issues put forth by
Goddrick.
Not Yet Satisfactory
This is still not the procedures for handling a complaint. Please refer to
previous feedback and resubmit in the space below.
Note: The answer box above expands automatically
Q6 (a) – 3rd Resubmission attempt
The process that is taken into consideration in these circumstances is
asking the client to provide certain documents with the help of which
the issue can be resolved. The client is asked to provide:
 a copy of the superannuation provider's letter notifying of its
decision to reject/deny your disability claim
 a copy of the letter of complaint to the superannuation provider
about this decision
 a copy of the superannuation provider's letter of response to the
complaint
 if the complaint is about the amount of benefit payable' for
example, whether an insured component of the benefit is
payable or that a higher level of insured benefit is payable, an
explanation as to why Godrick believes he is entitled to the
insured component of the benefit and/or a higher level of benefit
and what have you based this belief on
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Note: The answer box above expands automatically
b. Goddrick is not satisfied with the response he receives from the Seniors Super
fund and wants to take his complaint to the Superannuation Complaints
Tribunal (SCT).
In your own words, describe whether the SCT can handle the complaint and
the reasons why?
Which complaints can the SCT deal with and which ones can’t they deal with?
The Tribunal handles the complaints associated to the decisions and conduct of trustees,
insurers, and other decision-makers in accordance to regulated superannuation funds,
sanctioned by deposit funds, annuities, life policy funds and retirement savings accounts.They
cannot deal with the matters that are superannuation related.
Not Yet Satisfactory
Unfortunately, your response does not show a clear understanding of the
functions of the SCT. There are two parts to this question:
1. Can the SCT handle this complaint? You need to give reasons to
support your answer
2. What complaints can and can’t be dealt with by the SCT? Refer to the
SCT website to help you with this
Please revise and resubmit in the space below.
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Written Assignment – Marking Guide
Q6 (b) - Resubmission required
The Superannuation Complaints Tribunal manages the complaints
associated to the decisions and the operations of the trustees, insurers
and other related decision makers in accordance to the regulated
superannuation funds, life policies, retirement savings account and
sanctioned annuities and deposit funds.
However, they do not have the jurisdiction to manage with all the
superannuation related matters.
Not Yet Satisfactory
You have not answered the question asked. Please refer to previous
feedback and resubmit in the space below.
Note: The answer box above expands automatically
Q6 (b) – 2nd Resubmission attempt
In accordance to the situation that has been provided it can be said
that Superannuation Complaints Tribunal can handle this compliant as
it is related to the benefits from TPD.
It is seen that Superannuation Complaints Tribunal is not able to
handle certain superannuation related matters that are inclusive of
political and army personnel.
Not Yet Satisfactory
Unfortunately, you have not shown a clear enough understanding of
the types of complaints that can and can’t be handled by the SCT. This
can be found on the SCT website. Please revise and resubmit in the
space below.
Note: The answer box above expands automatically
Q6 (b) – 3rd Resubmission attempt
Superannuation Complaints Tribunal has the ability to manage and
handle these kind of complaints as the Tribunal was established in
order take care of any kind of issues and problems that can arise in
between the customers and the companies offering superannuation
products. By looking at the type of complaints the Tribunal can resolve
it is seen that they have the right to manage issues for the refusal to
approve a claim for a disability benefit.
The complaints that can be handled by the Tribunal are with respect to
these aspects:
 trustees of regulated superannuation funds (other than self-
managed superannuation funds (SMSFs)) and approved deposit
funds (ADFs)
41

FNS50715 – Diploma of Superannuation (RG 146 assignment)
 life companies as providers of immediate and deferred annuities
(annuity policies) providers of retirement savings accounts (RSA providers)
The Tribunal cannot deal complaints about: A life insurance product that is not an annuity or superannuation
product such as life insurance. An annuity issued by a body which is not a life company, such as
a friendly society A financial adviser who cannot be shown to be acting as an agent
of a superannuation provider. The trustee of any superannuation fund, life company or RSA
provider about matters that are the subject of court
proceedings. An employer, for example about the failure to pay contributions
Note: The answer box above expands automatically
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Written Assignment – Marking Guide
c. If the SCT took on Goddrick’s complaint identify and briefly describe the SCT’s
four (4) possible determination outcomes to Goddrick’s request.
SCT’s determination outcomes and description
1. Publication with the help of which all the publications are done with the help of which the
transparency is maintained.
2. Determination summaries: Thissummaries all the information that are related to the new
issues or anything related to the specific interest with the help of which all the relevancecan
be maintained.
3. Quick Search: This assists in quick search for any kind of information with the help of which
all information is available.
4.Advanced Search: This is done with the help of typing any words and exact phrase so that
better results can be attained.
Not Yet Satisfactory
Unfortunately, you have not correctly identified what the 4 types of determination
are that the SCT can make. Refer to your notes to check on these. Alternatively,
refer to the SCT website and look under ‘Complaint Process’ then ‘The
Determination’. Please resubmit your answer in the box below.
Q6 (c) - Resubmission required
SCT’s determination outcomes and description
1.The function of the Tribunal is not to undertake a decision as if the Tribunal is the decision-
maker or the trustee. The Tribunal makes a determination about whether the operation of the
decision complained about is or was unfair or unreasonable in the circumstances.
2. The Tribunal would even concentrate on the outcome of the decision in the practical
activities. In case the tribunal thinks that the activities of the decision is reasonable and fair
the Tribunal can confirm the decision and decision would stand.
3. The Tribunal may even remove the unfairness by setting aside the decisions or altering it
with a new decision.
4.In case the Tribunal thinks that the decisions are not functioning in a proper manner at this
point of time the Tribunal can exercise their powers with the intention of removing it.
Satisfactory
43

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Question 7
This question assesses the competency FNSASICU503: Provide advice in
superannuation (specialist knowledge)
a. In your own words, answer the following questions.
Are eligible members
able to claim a tax
deduction for
personal
contributions made to
a superannuation
fund from 1 July
2017?
Yes
If yes are these
contributions subject
to the concessional
contributions caps?
Yes
Are all funds required
to accept such
contributions?
Explain your
reasoning.
The acceptance of the contributions is dependent on the age of the
investor and accordingly the age would determine whether to accept
the contribution or not.
How does the
member claim the
tax deduction?
The member claim tax deductions with the help of income tax
deductions.
Not Yet Satisfactory
The first parts of the table are correct. However, your answer to the third question
is incorrect. You need to explain whether all funds are required to accept personal
contributions for the purposes of claiming a tax deduction. You should assume a
TFN has been provided and give your reasons why they can/can’t be accepted by
all funds.
Your last answer also needs to be revised. You need to explain the process for how
the member goes about claiming a tax deduction. What information needs to be
provided to the fund?
Please revise and resubmit your answers in the space below.
Q7 (a) - Resubmission required
Are all funds required
to accept such
contributions?
Explain your
reasoning.
All funds cannot accept contributions because the absence of TFN does
not accept the contribution of the member. Like for example mandated
contributions cannot be accepted after the age of 75 years.
How does the One can claim for tax deductions if one is the member of the Australian
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Written Assignment – Marking Guide
member claim the
tax deduction?
Super and the contributions are in the super account.
If one is planning to segment all the part of the contributions with their
spouse and therefore needs to provide notice of intent to claim a
deduction initially.
Not Yet Satisfactory
Your answer to the first part of this question has still not met requirements. Please
refer to previous feedback and resubmit in the space below.
Q7 (a) – 2nd Resubmission attempt
Are all funds required
to accept such
contributions?
Explain your
reasoning.
The funds that does not have a valid TFN cannot accept any kind of
contributions and therefore a rate of 32% is levied over the standard
rate of 15%.
Not Yet Satisfactory
Your answer remains as incorrect. Please refer to previous feedback and resubmit
in the space below.
Q7 (a) – 3rd Resubmission attempt
Are all funds required
to accept such
contributions?
Explain your
reasoning.
Yes due to the fact that acceptance of contribution determines the
extent of tax that is levied and even reduces the amount of tax that is to
be paid.
b. Ingrid is 44 years old and is a member of her employer’s default fund. Ingrid’s
employer has made $6,500 worth of SG contributions on her behalf
throughout the year. Assuming that no TFN has been provided to the fund,
how will this contribution be taxed? Assume the SG contributions were made
in the 2017/18 financial year.
The contribution would be taxed with the help of income tax deductions.
Not Yet Satisfactory
The fund does not hold Ingrid’s TFN. Refer to your notes to make sure you
understand how these contributions will therefore be taxed in this situation.
Please resubmit your answer in the box below.
Q7 (b) - Resubmission required
In the scenario if the fund does not have a valid TFN for the member
NO TFN quoted contributions tax is withheld at the rate of 32%. This is
over the 15% that has been paid already on the assessable employer
45

FNS50715 – Diploma of Superannuation (RG 146 assignment)
contributions.
The fund must even remit the additional tax to the ATO
The funds would be issued with an invalid TFN notice.
Satisfactory
Note: The answer box above expands automatically
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c. Explain what the co-contribution income threshold test is.
Income threshold test is done that in order to receive co-contribution the total income requires
to be less than higher the income threshold for the financial year.
Not Yet Satisfactory
You are on the right track. However, some more specific detail about
calculating the ‘member’s income’ is needed to demonstrate a clear
understanding of the co-contribution threshold test. Please refer to
comments in the margin to expand on your answer and resubmit in the box
below.
Q7 (c) - Resubmission required
Income threshold test is done that in order to receive co-contribution the total income
requires to be less than higher the income threshold for the financial year.
The purpose of it has been to test the total income, which is the sum of the assessable
income for the accounting year, the reportable fringe benefits for the accounting year and
the overall reportable employer super contributions for the accounting year.
Satisfactory
Note: The answer box above expands automatically
d. Veronica has an assessable income of $48,500 and makes a personal
contribution of $1,000 to her super fund in 2017/18. What is the maximum
government co-contribution amount Veronica would be entitled to? Show all
workings.
18% of $1000= $180.
Not Yet Satisfactory
Your approach to this calculation is incorrect. There is a formula for
calculating the co-contribution amount which needs to be used here. Please
refer to your notes to check on this. You will need to redo this calculation
(showing all workings) and resubmit your answer in the box below.
Q7 (d) - Resubmission required
$500-[48500-36813]*0.3333
$110.82
Step 2:
$1000*0.5
47

FNS50715 – Diploma of Superannuation (RG 146 assignment)
$500
The co-contribution amount is $110.82
Satisfactory
Note: The answer box above expands automatically
e. Sebastian contributes $2,500 to a complying superannuation fund for his
spouse who earns no income. Calculate the amount of tax offset that
Sebastian is entitled to. Show all workings.
The maximum offset account is $540.
Not Yet Satisfactory
Remember that there are two steps in the formula for calculating the tax
offset. You need to take this into account for working out Sebastian’s
entitlement in this scenario. Refer to the explanation and example in your
notes to work this out correctly.
Please revise (showing all workings) and resubmit your answer in the box
below.
Q7 (e) - Resubmission required
18% of $2500
=$450
Satisfactory
Note: The answer box above expands automatically
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Question 8
This question assesses the competency FNSASICU503 Provide advice in
superannuation (specialist knowledge)
a. The trustee of Save More Super Fund decides to outsource their
administration to Simplicity Ltd. The trustee has not notified the Australian
Prudential Regulation Authority that they have appointed Simplicity Ltd as
their outsourced service provider because they do not believe this
communication is necessary.
Has there been a breach
by the trustees?
Yes
Who is responsible for the
breach? (the trustee or
the administrator)
Trustee
Is it a requirement by the
Trustees to notify APRA?
Yes
Satisfactory
b. Elyse is 41 years old and has been recently diagnosed with lung cancer. She
would like to access her superannuation benefit to help pay for her medical
treatment and expenses. Elyse was advised by her doctors that she was
unlikely to live beyond two years. Elyse would also like to use a portion of her
superannuation benefit to go on a cruise with her daughter.
Name two (2) conditions of release where Elyse may be able to claim some or
all of her superannuation benefit. Outline any specific requirements under
these conditions.
Condition of release Specific requirements under the conditions
1.Severe terminal medical
conditions
As she is suffering from lung cancer and she is unlikely live
beyond 2 years.
2. Compassionate grounds As Elyse would not be living over 2 years and in order to
fulfil her desire to go on a cruise with her daughter and
therefore compassionate grounds would be used.
Not Yet Satisfactory
You have correctly identified terminal medical condition and compassionate
grounds as conditions of release available to Elyse. However, your descriptions of
the specific requirements that must be met for each of these need more work.
Refer to comments in the margin and your subject notes to revise.Please resubmit
in the box below.
Q8 (b) - Resubmission required
49

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Condition of release Specific requirements under the conditions
1.Severe terminal medical
conditions
Provide specific evidence regarding the terminal illness and
the evidence is done by providing the test reports and the
documentation of the doctors.
2. Compassionate grounds The threshold will be increasingly high for such instances
and the threshold amount has to be given in order to access
the fund.
Not Yet Satisfactory
Your answers have still not met requirements. Please refer to previous feedback to
see what still needs to be addressed and resubmit in the space below.
Q8 (b) – 2nd Resubmission attempt
Condition of release Specific requirements under the conditions
1.Severe terminal medical
conditions
The condition and the stage of terminal illness need to be
addressed and evidence about the same has to be
submitted. The documents need to be addressed by
Department of Health Services.
2. Compassionate grounds This is possible is permitted by the Department of Human
Services
Not Yet Satisfactory
Unfortunately, your outline of specific requirements for each condition of release
has still not met requirements. This is covered in your subject notes. Please revise
and resubmit in the space below.
Q8 (b) – 3rd Resubmission attempt
Condition of release Specific requirements under the conditions
1.Terminal medical
conditions
 Two registered medical practitioners have certified,
jointly or separately, that Elyse suffer from an
illness, or have an injury, that is likely to result in
death within a period (certification period) that ends
no more than 24 months after the date of the
certification
 At least one of the registered medical practitioners
is a specialist practicing in an area related to the
illness or injury
 The certification period for each of the certificates
has not ended.
2. Compassionate grounds  Paying for medical treatment for the illness
 Making a payment on a loan to prevent from losing
their home
 Modifying the home or vehicle for the special needs
or a dependant because of a severe disability
 Paying for expenses associated with a death, funeral
or burial of a dependant.
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c. Christopher is planning on retiring on 20 November 2017. At this time, he will
be 58 years of age. His superannuation benefit is worth $700,000 which
consists of a tax-free component of $80,000. Christopher’s fund is a taxed
superannuation fund.
Calculate the amount of tax Christopher would need to pay if he decides to take
his whole benefit as a lump sum. Show all workings.
(Note: include the 2% Medicare levy in your calculations.)
9.50% of the account balance= $620,000
=$58900-2% of $620,000
=$12400
$58900-12400
=$46500
Not Yet Satisfactory
Unfortunately, your approach to this calculation is incorrect. Take another look at
the examples in your subject notes for the correct steps and methodology.
Please revise and resubmit your answer (showing all workings) in the box below.
Q8 (c) - Resubmission required
The person has attained the preservation age of 55 years as he is born
in the year 1959.
$700,000-$200,000
$500,000*0.15
$75000*2% medical levy
$75000*0.02
$1500
$75000-$1500
$73,500
Not Yet Satisfactory
Unfortunately, your approach to this calculation is not quite there. Take
another look at the examples in your subject notes for the correct
steps and methodology.
Please revise and resubmit your answer (showing all workings) in the
box below.
Note: The answer box above expands automatically
Q8 (c) – 2nd Resubmission attempt
51

FNS50715 – Diploma of Superannuation (RG 146 assignment)
No tax on the tax free component= $80000
Taxable component (taxed benefit)
First $200,000 @ nil tax
Remaining $420,000*17% (15% plus 2% medical levy)
=$71,400
Christopher will have to pay a total of $71,400 tax on her benefit of
$700,000
Satisfactory
Note: The answer box above expands automatically
d. Doug will turn 67 years of age on 10 April 2017 and has decided to retire on
his birthday. He will be entitled to a lump sum benefit of $300,000. He has
decided to open an account-based income stream with monthly payments
commencing on 10 April 2017, and will withdraw the minimum payment for
that year.
Note: the income stream commences on the 10th April 2017.
What will Doug’s pension payment be in his first year? (i.e. to 30 June 2017).
Show all workings, including how you calculated the number of days. Note:
refer to chapter 6 for the formula and life expectancy tables to assist when
calculating your answer.
82 days
5% of $300,000
=$15,000
$15,000 x 82/365
=$3370
Satisfactory
Note: The answer box above expands automatically
e. Sansa is a 69 year old single retiree. She lives in a two bedroom town house
worth $520,000, with household contents valued at $25,000. She has a rental
property valued at $250,000 of which she receives $18,500 net rent for the
year. She drives a Toyota Corolla valued at $14,000. Her savings include
$21,500 in her bank account and $15,000 in a term deposit. She has a share
portfolio valued at $24,500.
Sansa also has an account-based income stream which she purchased in
August 2017 for $300,000. As part of her income stream, she receives an
annual income of $15,000.
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 Identify the assets that would be deemed as a financial asset under the
income test. Calculate the total value of those assets.
 Using the deeming rates, calculate Sansa’s deemed income. Show all
workings.
Financial asset=
Toyota Corolla =$14000
Rental rent= $18500
Share portfolio= $24,500
=$288,500 x 1.75%
=$5048.75
$288,500-$5048.75
$283451.25 x 3.25%
=$9212
$9212+$5048.75
=$14260.75
Not Yet Satisfactory
Unfortunately, you have not identified the deemed assets correctly. Refer to
the list of deemed inclusions and exclusions in your subject notes to see
where you went wrong. You should also note the date at which the income
stream was purchased and the rules applicable for this period. The threshold
used in the second part of your calculation is also incorrect. Refer to your
subject notes for the correct thresholds.
Please redo both parts of this question and resubmit your answers (showing
all workings) in the box below.
Q8 (e) - Resubmission required
Financial asset
Share portfolio=24500 Actual return= 4.5%*24500= 1102.5
Rent income= 18500
Bank Account=21500 Actual Return= 3.5%*21500= 752.5
Term Deposit= 15000 Actual Return= 6.5%*15000=975
Annual Income Stream= 15000
Total Financial assets= 24500+21500+15000
=$61000
1.75%*50200=$878.50
3.25%*(61000-50200)
=$351
53

FNS50715 – Diploma of Superannuation (RG 146 assignment)
878.50+351
=$1229.50
1102.5+752.5+975
=$2830
The amount that is attained is lower than the investment returns from
the debentures and banks.
Not Yet Satisfactory
Unfortunately, you have missed including one more item that is a
deemed asset. Refer to the list of deemed inclusions and exclusions in
your subject notes to see where you went wrong. You should also note
the date at which the income stream was purchased and the rules
applicable for this period. Pleaserevise (showing all workings) and
resubmit your answers in the box below.
Note: The answer box above expands automatically
Q8 (e) – 2nd Resubmission attempt
Financial asset
Share portfolio=24500 Actual return= 4.5%*24500= 1102.5
Rent income= 18500
Bank Account=21500 Actual Return= 3.5%*21500= 752.5
Term Deposit= 15000 Actual Return= 6.5%*15000=975
Annual Income Stream= 15000
Total Financial assets= 24500+21500+15000+15,000
=$76000
1.75%*50200=$878.50
3.25%*(76000-50200)
=$838.5
878.50+838.50
=$1717
1102.5+752.5+975
=$2830
The amount that is attained is lower than the investment returns from
the debentures and banks.
Not Yet Satisfactory
You are nearly there but have included the income stream payments
as a deemed asset instead of the purchase price of the income stream.
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Please revise and resubmit all parts of this question in the space
below.
Note: The answer box above expands automatically
Q8 (e) – 3rd Resubmission attempt
Financial asset
Share portfolio=24500 Actual return= 4.5%*24500= 1102.5
Rent income= 18500
Bank Account=21500 Actual Return= 3.5%*21500= 752.5
Term Deposit= 15000 Actual Return= 6.5%*15000=975
Annual Income Stream= 300000
Total Financial assets= 24500+21500+15000+300000
=$361,000
1.75%*50200=$878.50
3.25%*(361,000-50200)
=$10,101
878.50+10,101
=$10979.50
1102.5+752.5+975
=$2830
The amount that is attained is lower than the investment returns from
the debentures and banks.
Note: The answer box above expands automatically
f. Samuel is a 67 year old single retiree. He lives in a two bedroom town house
worth $540,000, with household contents valued at $35,000. He has a rental
property valued at $275,000 of which he receives $12,000 net rent for the
year. He drives a Mazda valued at $20,000. His savings include $27,000 in his
bank account and $35,000 in a term deposit. He has a share portfolio valued
at $10,000.
Samuel also has an account-based income stream which he purchased in
November 2014 for $250,000. As part of his income stream, he receives an
annual income of $15,000.
55

FNS50715 – Diploma of Superannuation (RG 146 assignment)
• Identify the assets that would be deemed as a financial asset under the
income test. Calculate the total value of those assets.
•Using the deeming rates, calculate Samuel’s deemed income. Show all
workings.
Financial asset=
Mazda=$20000
Rental Property= $275000
Share portfolio= $10000
=$295000x 1.75%
=$5162.5
$295000-$5162.5
$289837.5 x 3.25%
=$9419.7
$9419.7+$5162.5
=$14582.2
Not Yet Satisfactory
Unfortunately, you have not identified the deemed assets correctly. Refer to
the list of deemed inclusions and exclusions in your subject notes to see
where you went wrong. You should also note the date at which the income
stream was purchased and the rules applicable for this period. The threshold
used in the second part of your calculation is also incorrect. Refer to your
subject notes for the correct thresholds.
Please redo both parts of this question and resubmit your answers (showing
all workings) in the box below.
Q8 (f) - Resubmission required
Financial asset
Share portfolio=10000 Actual return= 4.5%*10000= 450
Rent income= 12000
Bank Account=27000 Actual Return= 3.5%*27000= 945
Term Deposit= 35000 Actual Return= 6.5%*35000=2275
Total Financial assets= 10000+27000+35000
=$72000
1.75%*50200=$878.50
3.25%*(72000-50200)
=$21800
878.50+708.5
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=$1587
2275+450+945
=$3670
The amount that is attained is lower than the investment returns from
the debentures and banks.
Satisfactory
Note: The answer box above expands automatically
57

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Question 9
This question assesses the competency FNSASICU503 Provide advice in
superannuation (specialist knowledge)
a. The trust deed sets out the basis for the operation of a superannuation fund,
as well as the duties and responsibilities of the trustee. According to the SIS
Act, there are certain trustee duties that are deemed to be included in the
trust deed of every regulated fund (i.e. there is no need to incorporate them
specifically as they are considered to be included).
Identify four (4) trustee duties which are deemed to be included in the trust
deed in accordance with SIS legislation.
Note:Students who list trustee duties that are not deemed to be included in
the trust deed will be marked ‘Not Yet Satisfactory’ for this question.
Trustee duty 1: to act honestly in all matters concerning the fund
Trustee duty 2: to allow a beneficiary access to any prescribed information or document
Trustee duty 3: to formulate and give effect to an investment strategy
Trustee duty 4: to keep the assets of the fund separate from its own assets
Satisfactory
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b. The Trustee of Nirvana Corporate Super Fund, which is a non-public offer
accumulation fund, has invested some of the assets held in trust for the
members of the fund in a resort development being undertaken by a company
associated with some of the individual directors of the Trustee of Nirvana
Super. The individual directors of the trustee are also members of the fund.
The Trustee invests 15% of its assets in the resort. Is the Trustee in breach of
the SIS in-house assets limits? Should the directors have declared a conflict of
interest before this decision was taken?
There has been a breach in the SIS in house asset limits and therefore the directors have the right to
declare conflict of interest in case the directors have not been informed of the investments to be
taken place on a prior notice.
Satisfactory
Note: The answer box above expands automatically
c. When setting a fund’s investment objectives and investment strategy,
trustees need to consider a number of things, including the fund’s
membership.
 Outline the two (2) investment strategies for a MySuper option
 What is the legislative requirement funds must meet when setting the
investment strategy for a MySuper fund option?
The two investment strategies are:
Balanced and Growth
The legislative requirement funds must meet when sitting the investment strategy has been to
determine the costs and the fees and the employers has to pay as the default contribution to the
authorized fund. A target is even set for the purpose of investment with the help of which the options
can be created and the investment strategy can be planned accordingly.
Not Yet Satisfactory
There are very specific guidelines for the type of option or investment strategy
that a fund can offer as their MySuper option. You need to identify and give and
outline of these.
An explanation of the legislative requirements in relation to rate of return and risk for a
MySuper option is also needed.
Please refer to your notes to revise this topic and resubmit your answers in the
space below.
Q9 (c) - Resubmission required
The two investment strategies are:
Single diversified investment strategy
Lifecycle investment strategy
59

FNS50715 – Diploma of Superannuation (RG 146 assignment)
The legislative requirement the funds must meet while setting the
investment strategy is that the products will have to face higher
performance requirement so that the fund would have adequate scale.
Not Yet Satisfactory
You have correctly identified the investment strategies for MySuper but
also need to give an outline of these. An explanation of the legislative
requirements in relation to rate of return and risk for a MySuper option
is also still needed.
Please refer to your notes to revise this topic and resubmit your
answers in the space below.
Note: The answer box above expands automatically
Q9 (c) – 2nd Resubmission attempt
Single Diversified Investment Strategy: This is how most MySuper
options work. If nothing is done with the money it will be put in a
standard mix of investments and the risk-reward approach will stay the
same for the whole life.
Life Cycle Investment Strategy: This is a Super Fund that offers a
lifecycle option will move the money from growth investments when
one is young to more conservative investments when one grows older.
The legislative requirement constitutes of the fact that MySuper would
be able to able to meet the objectives of risk and returns of the
investor in order to provide them with the most effective level of
returns and the lowest amount of risk.
Not Yet Satisfactory
You have not addressed what the second part of this question asks for.
Please refer to previous feedback and resubmit in the box below.
Note: The answer box above expands automatically
Q9 (c) – 3rd Resubmission attempt
Single Diversified Investment Strategy: This is how most MySuper
options work. If nothing is done with the money it will be put in a
standard mix of investments and the risk-reward approach will stay the
same for the whole life.
Life Cycle Investment Strategy: This is a Super Fund that offers a
lifecycle option will move the money from growth investments when
one is young to more conservative investments when one grows older.
The legislative requirement that has to be followed is the one put forth
by ASIC which has provided to oversee the funds need to be met by
the funds.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Question 10 Part (a) assesses the competency FNSASICU503: Provide advice in
superannuation (specialist knowledge) Part (b) assesses a component from FNSINC402: Develop and maintain in-depth
knowledge of products and services used by an organisation or sector
a. You are the Training Manager for ‘We Manage It’, a service provider who looks
after the administration of a number of high profile superannuation funds. You
have a group of new Customer Service employees to train, and have prepared
the following table of questions as ‘ice-breakers’ for the upcoming induction
program. Prepare your responses to each question so that you are not caught
out on the day.
Name all the different types of
superannuation vehicles that can
accept superannuation monies.
MySuper.
Industry Super Funds.
Retail Super Funds.
Corporate Funds.
Public Sector Funds.
Self-Managed Super Funds (SMSFs)
Tell me one (1) defining
characteristic of each
superannuation vehicle.
Each of the vehicles that have been addressed are
associated with an individual sector and therefore better
portfolio can be maintained.
What are the two (2) main
superannuation fund designs?
Tell me the key difference between
the two.
Defined Benefit and Accumulated Superannuation Funds
Defined benefit funds are less common than
accumulation funds as a defined benefit would be
attained which would be fixed. Accumulation fund refers
to the sustainable growth of the fund.
What are the two (2) main types of
contributions that can be received
by a superannuation fund?
Tell me the key difference between
the two.
Concessional and non-concessional contribution
Concessional contributions can be claimed as a
deduction of personal tax which is taxed at 15% instead
of your marginal rate which is subject to not exceeding
an annual contribution cap.
Non-concessional contributions are contributions that
are not tax deductible. Non-concessional contributions
are also subject to annual contribution caps.
Identify the two (2) main options
that a superannuation fund has to
manage the administration of its
funds.
Attractive policy option and the operations of the fund.
This question relates to the two (2) options a fund has
for managing the fund’s administration function. What
are these?
Not Yet Satisfactory
Unfortunately, your answers to several of the questions (highlighted) did not meet
requirements and will need to be revised.
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Please refer to comments in the margins and table to understand what further
information is required and resubmit your answers in the space below.
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
Q10 (a) - Resubmission required
Name all the different types of
superannuation vehicles that can
accept superannuation monies.
The funds are:
Corporate Funds
Industry Funds
Public sector funds
Retail Funds
Self managed Superannuation Funds
Small APRA Funds
Retirement savings Fund
Approved deposit funds and deferred annuities
Eligible rollover funds
Tell me one (1) defining
characteristic of each
superannuation vehicle.
Corporate funds: These funds are sponsored by one or
more associated employers to provide superannuation to
their employees.
Industry Funds: These are multi employer funds generally
constructed jointly by precise industrial union bodies and
organizations in one or more industries in order to give out
lower expenses and portable superannuation to the
employees.
Public Sector Funds: Public sector funds are created by
state or federal Government legislation to cover the
employees of one or more employers in the public sector.
Retail Funds: Retail funds are public offer funds, and are
open to all who are eligible to contribute to
superannuation.
Self managed Superannuation Funds: SMSFs are
commonly used by small business owners and their
families, and high net worth individuals.
Small APRA Funds: Small funds that are not able or
willing to satisfy the SMSF conditions remain under the
supervision of APRA
Retirement savings Fund: These are capital guaranteed
accounts set up to receive superannuation monies
Approved deposit funds and deferred annuities: An ADF is
a type of rollover fund which may only accept
superannuation lump sums. DAs are rollover funds which
accept rollover superannuation lump sums provided the
investor is under age 65years.
Eligible rollover funds : An eligible rollover fund (ERF) is a
superannuation fund, or approved deposit fund, which is
eligible to receive benefits automatically rolled over from
other funds.
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What are the two (2) main
superannuation fund designs?
Tell me the key difference between
the two.
The two fund designs are:
Accumulation funds
Defined benefit funds
The key differences are:
In accumulation funds, the bank style benefits so they are
easier to understand.
Defined based benefits are difficult to understand and
calculate
Identify the two (2) main options
that a superannuation fund has to
manage the administration of its
funds.
The two options that superannuation fund has to manage
are:
Be aware of the impact of the market downturns on the
superannuation funds
Ascertain the risks related to the superannuation funds.
This question relates to the two (2) options a fund has
for managing the fund’s administration function. What
are these?
Not Yet Satisfactory
Overall you have done a good job but unfortunately your answer to the last
question still did not meet requirements and will need to be revised. Please refer to
the comments in the table (above) and resubmit your revised answer in the space
below.
Q10 (a) – 2nd Resubmission attempt
What options are available to a superannuation fund
to manage its administration and management costs?
The options that are available are:
Financial reporting of the superannuation
Unclaimed super money
Not Yet Satisfactory
Unfortunately,you have still not met requirements for this question. Please refer to
previous feedback and resubmit in the space below.
Q10 (a) – 3rd Resubmission attempt
What options are available to a superannuation fund
to manage its administration and management costs?
The two options are:
Construction of the investment strategy: To
formulate, review regularly and give effect to an
investment strategy for the whole of the entity, and
for each investment option offered by the trustee in
the entity
Diversification of the investment: To ensure the
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
investment options offered to each beneficiary
allow adequate diversification.
b. After the induction program, a number of employees ask you how they can
maintain their knowledge of the products and services offered by the funds
they administer. As the Training Manager, what procedures would you put in
place to ensure that employees are keeping up-to-date with their product,
service and competitor knowledge?
As the training manager, one has to provide all the updated information about the services
and the products to the employees in order to have updated knowledge and even assess their
work and performance on a frequent basis in order to improve their level of operations.
Not Yet Satisfactory
This is a good start, but more specific detail is needed to meet requirements.
Remember that this request has been made of the training manager.
Therefore, from a training perspective, what might the training plan/materials
look like? What else could the training manager put in place to assist with
keeping up to date? Think about the training available at your own
organisation. That should help you to identify some formal and structured
alternatives.
Please revise and resubmit in the space below.
Q10 (b) - Resubmission required
As the training manager the process that would be advised to the employees are:
Establish the relationship with the client by explaining all the processes and the roles.
Recognise the objectives, demands and the financial scenario of the clients with the help
of precise business, personal and financial details
Assess the risk profile, objectives of the client and their financial scenario
Develop suitable plans and solutions
Provide suitable strategies and solutions to the clients
Negotiate the financial plans, policies and transactions with the client
Co-ordinate the incorporation of the agreed plan
Conclude and maintain essential documentation
Provide services that would be ongoing.
Not Yet Satisfactory
Unfortunately, you have not answered the question asked. This is not a
financial advice question. Please refer to previous feedback and
resubmit in the space below.
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Q10 (b) – 2nd Resubmission attempt
The procedures that would be put in place in order to provide better
knowledge about the products and services would comprise of frequent
assessment of the employees with respect to their knowledge about
the products and services they are offering. Training would even be
given in accordance to the new products that are being introduced in
the market. Evaluation test will even be done in order to discover that
the employees are up to date with the changes that are taking place in
the market and accordingly understand what changes are taking place
accordingly in the products and services.
Satisfactory
Note: The answer box above expands automatically
67

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Question 11
This question assesses the competencies:
 FNSASICU503 Provide advice in superannuation (specialist knowledge)
 FNSINC401 Apply principles of professional practice to work in the financial
services industry
a. Complete the table below to build a summary of the main regulators in the
superannuation industry.
APRA ASIC ATO AUSTRAC
What does each
acronym stand for?
Australian
Prudential
Regulation
Authority
Australian
Securities and
Investments
Commission
Australian
Taxation Office
Australian
Transaction
Reports and
Analysis Centre
What part of the
industry do they
regulate?
Australian financial
services industry
Australia's
corporate
regulator
Australian
government
statutory agency
Australian
government
financial
intelligence
agency
Name the key
legislation each
regulator is
responsible for
enforcing.
Legislation Act
2003
Legislative
Instruments
Taxation
legislation
taking care of
money laundering
and other aspects
A one (1) sentence
summary of the key
requirement of the
legislation you
identified above
The Legislation Act
2003 authorizes
First Parliamentary
Counsel to make
editorial and
presentational
alterations to a
compiled law in
preparing a
compilation of the
law for registration
Provides a
corporate
regulatory work
takes care of the
tax related issues
and concerns
Established to
monitor financial
transactions to
identify money
laundering,
organized crime,
tax evasion,
welfare fraud and
terrorism.
Licenses issued public APRA Works Financial Advisers
Registers
n/a n/a
List the regular
reports/documents
that super funds
need to submit to
this regulator
Monthly statistics n/a Income
statement
All transaction
related documents
Not Yet Satisfactory
You have made a good start, but most areas of the table needed more detail.
Please take note of the comments above. You should then add additional details in
the sections of the table shown below.
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Q11 (a) - Resubmission required
APRA ASIC ATO AUSTRAC
What part of the
industry do they
regulate?
Financial service
Sector
Consumer protection
and market integrity
matters
Revenue
collection agency
Anti-money
laundering and
counter terrorism
financing
regulator
Name the key
legislation each
regulator is
responsible for
enforcing.
Superannuation
Industry
(Supervision) Act
1993
APRA Prudential
Standards
Superannuation
Supervisory Levy
Corporations Act
2001(Corporations
Act)
Superannuation
Complaints Tribunal:
Data standards
Single touch
payroll
Financial Action
Taskforce:
A one (1) sentence
summary of the
key requirement of
the legislation you
identified above
Superannuation
Industry
(Supervision) Act
1993: The general
aim of the
Superannuation
Industry
(Supervision) Act
1993 (SIS Act or
‘SIS’ for short)is to
create an
environment in
which
superannuation
savings are
managed in the
interests of the
members to
whom they belong
and kept secure
until the
members’
retirement from
the workforce
APRA Prudential
Standard: The
governance and
integrity elements
within the
Stronger Super
reforms have
increased the
duties for trustees
and trustee
directors.
Superannuation
Supervisory Levy:
PRA’s costs and
Corporations Act
2001(Corporations
Act): ASIC is
principally
responsible for the
enforcement of the
Corporations Act
which regulates the
conduct and
disclosure
obligations of
financial services
providers, including
superannuation
trustees that hold an
Australian Financial
Services (AFS)
Licence.
Superannuation
Complaints
Tribunal:The
Superannuation
Complaints Tribunal
(SCT) was
established under
the
Superannuation(Reso
lution of Complaints)
Act 1993 to deal with
member complaints
about decisions of
trusteesof regulated
superannuation
funds.
Data standards:
To support Super
Stream, the ATO
was given
powers to
determine and
implement data
standards
Single touch
payroll : It
includes the
government’s
proposed single
touch payroll
(STP) reforms for
reporting of
payroll and
superannuation
information to
the Australian
Taxation Office
(ATO)
Financial Action
Taskforce:The
Financial Action
Taskforce (FATF)
is an inter-
governmental
body that looks at
internationaleffort
s to combat
terrorism
financing and
money laundering
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FNS50715 – Diploma of Superannuation (RG 146 assignment)
the cost of
additional
consumer
protection
functions in the
financial system
are funded
through levies on
those industries
that are
prudentially
regulated by
APRA.
Licenses issued Registrable
Superannuation
Entity (RSE)
license
Licensing: Training of
financial product
advisers
n/a n/a
List the regular
reports/documents
that super funds
need to submit to
this regulator
The performance
of the fund report
n/a Income tax and
financial
statements
Notifying
authorities of
suspicious
matters,
thresholdtransacti
ons and
international
funds transfer
instructions
Satisfactory
b. Complete the table below on the following legislation and regulator
guidelines/standards that are relevant to the superannuation industry.
ASIC Regulatory
Guide 146
Superannuatio
n Prudential
Standards
Superannuation
Guarantee
(Administration)
Act 1992
Retirement Savings
Account Act 1997
Who
administers it?
ASIC Australian
Prudential
Regulation
Authority
APRA Federal Register of
Legislation
What is its
aim?
taking care of the
financial risks and
providing advice
and training
The standards
set out
operational
requirements
for different
aspects of
superannuation
provision
safeguarding the
intentions of the
investors
Taking care of the
savings related to
the retirement of an
individual
Not Yet Satisfactory
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You have correctly identified who administers RG146 and the Prudential Standards,
but unfortunately the remaining answers in the table are incorrect or need more
specific detail. Please revise and resubmit in the space below.
Q11 (b) - Resubmission required
ASIC Regulatory
Guide 146
Superannuatio
n Prudential
Standards
Superannuation
Guarantee
(Administration)
Act 1992
Retirement Savings
Account Act 1997
Who
administers it?
ASIC Australian
Prudential
Regulation
Authority
ATO Superannuation
Industry
What is its
aim?
ASIC’s major
concern is to
ensure that
consumers receive
adequate
information to
make informed
decisions about
financial products
and services
Provide APRA
with the tools it
needs to
improve its
oversight of
Superannuation
.
The aim is to
provide
requirements for
offering eligible
employees to
choose a
complying
superannuation
fund to receive
employer
contributions
Aims to act as an
alternative vehicle
for the acceptance
of individual’s
superannuation
monies
Not Yet Satisfactory
You are almost there but a couple of your responses have still not met
requirements. Please revise and resubmit in the space below.
Q11 (b) – 2nd Resubmission attempt
Retirement Savings
Account Act 1997
Who administers it? APRA
ASIC Regulatory Guide
146
Superannuation Guarantee
(Administration) Act 1992
What is its aim? The main aim is to look
after the “mum and the dad
investors”, which refers to
looking after the interests
of the big investors.
The aim involves to ensure
that most employees
receive superannuation
support from their employer
Not Yet Satisfactory
You are almost there but have not correctly identified the aim of RG146. Please
refer to your subject notes to revise and resubmit in the space below.
71

FNS50715 – Diploma of Superannuation (RG 146 assignment)
Q11 (b) – 3rd Resubmission attempt
ASIC Regulatory Guide 146
What is its aim? To meet the training requirements under the
RG 146 put forth by ASIC.
c. Research on the internet the piece of legislation below and explain the
relevance of the Act’.
Legislation The Privacy Act 1988 (Privacy Act)
What is the
objective of this
Act?
Regulating how personal information is managed and controlled
Not Yet Satisfactory
More detail is needed here. The objective of the Privacy Act 1988 (Privacy Act) is
clearly stated within the legislation. Please refer to the Act to identify the stated
objective of this legislation and resubmit your answer in the box below.
Q11 (c) - Resubmission required
Legislation The Privacy Act 1988 (Privacy Act)
What is the
objective of this
Act?
The Privacy Act defines personal information whether true or not, and
whetherrecorded in a material form or not, about an identified individual,
or an individual who isidentifiable reasonably.
Not Yet Satisfactory
Unfortunately you have still not met requirements for this question. Please refer to
previous feedback and resubmit in the space below.
Q11 (c) – 2nd Resubmission attempt
Legislation The Privacy Act 1988 (Privacy Act)
What is the
objective of this
Act?
The objective of this act has been to ensure that privacy of the personal
information of the investors are managed and maintained.
Satisfactory
d. A member calls their fund to update their address details. While they are
talking, the customer service representative mentions that there have been
new investment options recently launched by the fund and that perhaps the
member would like to speak to one of their advisers about their investment
options.
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The member, concerned, asks whether she should be doing something about
changing her investment option. The representative replies that she is in a
great investment option, so not to worry but it’s something to think about.
What are the possible consequences of this conversation for the customer
service representative and the fund?
The possible consequence is that the member may seek a third party advice in order to
discover whether the current investment option is suitable or not and if there are any issues
the member can seek assistance and change their investment option.
Not Yet Satisfactory
You need to think about this a bit more. Are there any issues with the
conversation between the customer service rep (CSR) and the member?
Think about the rules regarding giving personal advice. You then need to
comment on the consequences of this for the CSR and the fund. If you think
about this from a compliance and financial perspective you should easily be
able to identify possible consequences.
Please resubmit your answer to this question in the box below.
Q11 (d) - Resubmission required
The customer service representative cannot provide personal advice in relation to the
investment of the client. A financial advisor or a trustee can provide scaled advice over
the superannuation till they have authorisation on the AFSL ASIC’s regulatory guide RG
244 does not permit the same.
Not Yet Satisfactory
Unfortunately, you have still not identified possible consequences of
this conversation. Please refer to previous feedback and resubmit in
the box below.
Q11 (d) – 2nd Resubmission attempt
The consequences of the conversation is that penalties can be charged
by the regulatory authority as the customer service representative
cannot provide personal advice in relation to the investment of the
client. A financial advisor or a trustee can provide scaled advice over
the superannuation till they have authorisation on the AFSL ASIC’s
regulatory guide RG 244 does not permit the same.
Satisfactory
Note: The answer box above expands automatically
73

FNS50715 – Diploma of Superannuation (RG 146 assignment)
e. One of FoFA’s aims was to improve the quality of financial advice given to
retail clients. Explain how the ban on conflicted remuneration structures helps
achieve this aim.
The ban on the conflicted remunerationstructure leads to the development of an equivalent
structure that motivates all the advisers to provide effective services with the help of which
better and effective advices can be provided to the clients and the advisers would feel that
they have not been overlooked.
Not Yet Satisfactory
You appear to have misunderstood what this question is asking. FOFA
introduced a ban on conflicted remuneration structures. What does this mean
and what changes happened as a result? How has this ban improved the
quality of financial advice for retail clients?
Please revise and resubmit your answer in the box below.
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Q11 (e) - Resubmission required
The ban on the conflicted remuneration structure has helped in the enhancement of the
confidence of the investors. This has even helped in the development of the confidence
and trust of the retail investors as the financial advisers would be working for the best
interests of the clients rather than their own.
Satisfactory
Note: The answer box above expands automatically
End of assignment
75