Identify Client Needs for Broking Services

This study material covers various aspects of identifying client needs for broking services. It includes information on external dispute resolution schemes, differences between private sale and auction for property purchase, mortgage franchisee system, age eligibility for home loans, reverse mortgages, and more.

FNSFMB402 IDENTIFY
CLIENT NEEDS FOR
BROKING SERVICES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

ACTIVITY- 1
Three external dispute resolution scheme as approved by ASIC are:-
1) Financial Ombudsman Service Limited- They are approved for settling the disputes between
the customers and the financial services businesses. They can require companies to provide
compensation.
2) Credit and Investments Ombudsman- It resolves the disputes through informal negotiations,
conducting a conciliation conference or conducting the investigations and making the decisions.
3) Superannuation Complaints Tribunal- They shall be resolving the complaints that are related
to the superannuation products that are hold by the clients in the financial services company.
ACTIVITY- 2
The major difference between the purchase of a property through private sale or through
the auction is regarding the affixing of the price at which the property is to be sold to the buyer.
In case of private sale the owner shall be fixing a price which shall further be negotiated by the
agents and shall finalise the best price with the buyers. On the other hand in auction various
prospective buyers bid on a particular property and the one with the highest bod shall be buying
the same.
ACTIVITY- 3
The mortgage franchisee system is commonly operated in Australia, under this the new
broker businesses can come up under the name of the well-established brand against this an
amount of fees and subscription over a period (Record keeping obligations, 2020). This set up
can either be in the form of a small shop or the establishment with the many employees.
ACTIVITY- 4
Age is one of the important determinant of qualifying for the home loans as this is
verified by the banks and the lenders before the approval. The person who is above 40 years of
age shall have lesser chances of receiving the loans. This is because there are only 20 years left
for the retirement and generally the tenure of the loan is approximately for 20 or more years. So
the younger people have higher chances of qualifying for the home loans.
ACTIVITY- 5
Reverse mortgage is another type of home loan where the loans are received against the
owned house property of the individuals. This amount can be availed from the age of 60 years
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and increases with the increasing age of the individuals. It can be received in lump-sum, streams
or in credit line and can be used to meet the costs of retirement (Reverse Mortgages – How do
they work? What are the risks? 2021). It can also be assessed that the amount of interest and
principle are not to be paid until the person is living in the house. The major risks are that it is
costlier than the normal home loans, interest cost exceeds post the compounding etc.
ACTIVITY- 6
The reasonable level of the enquiries for knowing the client matters and provided
information are necessary to ensure secure lending and broking services. The reasonable steps
shall be varying in case of each of the clients as if during the interrogation there is something
suspecting or it shall have an impact on the credit then further investigations must be made.
ACTIVITY- 7
The AFS licensees are required to maintain the records post the personal advices are
given to the client as the proof of the best in interest duty is provided to the clients. These records
are to be maintained for seven years post the services are provided to the client. It can be related
to the advices provided and the reason for providing the advices.
ACTIVITY- 8
According to the Privacy Act the reasonable steps must be taken to store the personal
information of the client to protect it from the misuse, unauthorized access, interference, loss,
modifications, disclosure etc. If the information is no longer required then it needs to be
destroyed and de-identified.
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REFERENCES
Books and Journals
Record keeping obligations. 2020. [Online] Available through:
<https://fpa.com.au/policy/policy-issues/record-keeping-obligations/>
Reverse Mortgages – How do they work? What are the risks? 2021. [Online] Available through:
<https://www.batemanbattersby.com.au/reverse-mortgages-how-do-they-work-what-are-the-
risks/>
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