FNSFMB402 - Broking Services: Addressing Client Needs - Case Study

This FNSFMB402 case study examines a complaint handled by XYZ Financial Services Pty Ltd, focusing on identifying client needs for broking services. The assessment reviews the Mr. & Mrs. Jones case, analyzing the franchisee's and lender's communication effectiveness, financial position analysis, and disclosure policies. It explores how the franchisee and lender could have improved rapport with clients through clear communication about interest rate fixing, ensuring clients were informed about the application process and its implications. The case study reveals a lack of proper financial analysis by the franchisee, highlighting the importance of documenting the client's financial position. Furthermore, it suggests changes to the lender's disclosure policy to ensure clients can make informed decisions, such as clearly stating that fixed rates depend on market conditions at the time of processing the request. The study emphasizes the need for transparency and comprehensive disclosure of information regarding interest rates, collateral requirements, and customer obligations to foster trust and align lender and borrower goals.

F NS40 8 15 C e r t ifi ca t e IV i n F IN AN CE & MO R TG AGE B R O K ING
FNSF M B40 2 Ide nti fy cli e nt n ee d s f or br ok ing s er v ice s
As se ssm e n t 2 - P e rform an ce

Assessment information
You work as a trainee Complaints Officer with XYZ Financial Services Pty Ltd (XYZ).
As part of your training your supervisor has asked you to review a complaint and the subsequent
actions arising from it.
Instructions to complete this assessment
In order to complete this assessment, you are required to complete the following sections
consecutively. Details and specific instructions are provided within each section and on the
form/templates provided.
S e c t ion 1 – Re view Cas e S tu dy
Requirements
Download and review the Mr & Mrs Jones Case Study, located in the Assessment Resources folder.
Sec t io n 2 – A ss ess Com pl a int h andl i ng pr oc e ss
Now complete each of the following steps:
1. How could the franchisee and the lender have used effective communication skills to build rapport
with clients Mr & Mrs Jones during the complaints process?
The process of fixing the interest rate should be clearly explained by the franchisee to the lender and in
return, they must confirm the client that they have sent their application to the lender and the action has
been initiated as per the request (Cunnew and Scammell, 2017). The confirmation should include that the
lender has done what is requested along with the new amount for repayment and fixed interest rate that
would be applied now onwards. Also, within the complaint handling process, there must a summary of
the event in written by the franchisee indicating Mr. & Mrs Jones the numerous options available for
them. Along with this, the lender must be provided with the obligations they have towards the customers.
In order to build rapport with the clients such as Mr. & Mrs. Jones, the franchisee by stating to the
client that due to the inconvenience faced, the lender is interested in providing with the competitive fixed

interest rate for a reasonable period that could result in compensating for the additional interest charged
upon them from the date of application till the request has been actually processed.

2. Did the franchisee analyse the clients’ financial position according to accepted organisational and
industry requirements? Explain your answer.
There is no analysis or assessment undertaken by the franchisee regarding the client's financial position as
required under accepted organizational and industry requirements. It is the duty of the franchisee to
inquire upon the financial position of the client along with documenting the same prior to accepting and
executing the application for fixing the home loan. Also, all the information pertaining to the financial
position and changes therein must be sent to the client by the franchisee to ensure that both the lender and
the borrower are on the same terms and goals. This would be helpful in aligning the goals of the lender
and the borrower both.
3. How could the lender change its company policy, with regards to disclosure, so that clients can rely
on informed decisions?

It is necessarily required from the lender to disclose all the information clearly to the customers that is
needed by customers to acknowledge their obligations (Hutchison and Allen, 2021). Disclosures are
required to be made on the brochures attached with the product offer document and websites of the
lender's company, interest rate flyers regarding the interest rates applicable or availed, collateral
required for different home loan products.
For instance, Within the interest rate flyers, the lender could suggest their customers that they can avail
fixed rate for their borrowed amount along with specifying that the rate the customer will get is the rate
prevailing in the market on the day when the request will be processed.

REFERENCES
Hutchison, A. and Allen, D., 2021. Unsecured lending and the indigenous economy in Australia and
South Africa. Journal of Law and Society, 48(1), pp.84-105.
Cunnew, R. and Scammell, A., 2017. The financial services sourcebook: A guide to sources of
information on banking, insurance and other financial services. Routledge.