Broking Options for Clients with Complex Needs

This document discusses broking options for clients with complex needs. It covers topics such as borrowing risk, specific product risk, institutional risk, risk factors and return expectations of the client, and volatility of income and capital. It also provides information on different types of broking options, communication strategies for clients with hearing disabilities, and ethical considerations in the broking industry. The document includes a third-party report on disclosure requirements and the importance of compliance with legislative requirements and industry regulations. It concludes with information on complaint handling procedures and the legal agreement between clients and broking agents.

PRESENT BROKING OPTIONS TO CLIENT
WITH COMPLEX NEEDS
1

Contents
Written activity................................................................................................................................3
Third Party Report...........................................................................................................................5
REFERENCES..............................................................................................................................10
2

Written activity
1)
 Borrowing risk and gearing – this type of risk is basically indicator as financial threat
associated with organisation. If in case, organisation has too much debt, it can fall into
financial distress. A high gearing ratio show a high proportion in debt of equity. It will be
lower the gearing which is completely opposite.
 Specific product risk – this type of risk is related to the overall budget, missing key
milestone or deadline. In context of product management, it would be identified the lack
of issues in resource availability (Zabolotna and Pavliuk, 2019). Therefore, it can be
identified a lack of functionality within specific product.
 Institutional risk – the risk is related to the regulation in which does not meet expectation
level of individual people (Zabolotna and Pavliuk, 2019). It will unable to meet the policy
objectives within society or community.
 Risk factors and return expectations of the client- there are different kind or risk factors
identified such as financial loss of client, a lack of investment time frame, irregular
activities, mis-management of budget level. These kind of factors return a poor
expectation level in front of client.
 Volatility of income and capital- income volatility is one of the major risk or threat which
may directly affecting house-holds at income level. It would be reached across
demographics group. It means that identify sudden loss of income for poor people.
3

2)
 Commercial loans- Commercial Loans cover all revolving lines of credit, in context of
short-term debt, long-debt etc. The feature of commercial loan in which provide the
facilities of client when they wanted to invest in current
 Chattel leases- According to the need of client, Chattel leases refers a contract by virtue,
there is involvement of personal property and also registered as security for performance
of an obligation.
 Native title rights- it provide the right for individual to recognise a set of interests among
people. It has been practiced and continue to practice, applied a legal rights and custom
prior to sovereignty.
 Heritage issues- the client need is to improve its intellectual disability towards the
conflict, and uncontrollable situation or condition. It may increase a major problem to
protection.
 Contaminated sites or properties near noxious industries- in order to determine the
contaminated sites in the residential properties, which can lead excessive use of
pesticides. In case, if any kind of contaminate land has become essential for
environmental so that it would be converted into different session.
3)
Answer: -
 Accounting and book keeping such as paper documentation
 Financial Market research by using software based tool such as CMS.
 Insurance and superannuation
 Banking and general financial by using internet application for purpose of loan
4

On the basis of discussion, it has been identified that different kind of key products which is
mainly used by broking industry. In order to perform different tasks effectively and
efficiently
4)
Answer:- different legislation which is mainly applicable in broking industry such as Trade
practices act, corporation law and ASIC regulation or guideline
Code of practices:- mortgage brokers code of practice, banking code of practice, etc.
On the basis of analysis, it has been identified that different legislative requirement and
regulation, code of practices are directly affecting on the broking industry. This is because
when it can develop a restrict policies where companies are doing their work within
specific circumstances (Zabolotna and Pavliuk, 2019). On the other hand, broker code of
practice is applied in the industry and afterwards, it will change the policies or procedures
for purpose of business operational management.
Third Party Report
1)
Answer:
As the client is having a special need of hearing disability so it is very essential that
the disclosure to capacity will be made accordingly. Adequate use of written disclosure will
be used which will be made and prepared as per the guidelines of the organization. Since
the client is not able to hear so a disclosure regarding each and every condition including
the name and address of the adviser, its relationship with the organization’s products and
various other necessary information as complied by guidelines will be made disclosed and
presented in written mode so that the client will be informed as well as its disability will
not be affected and harmed. Thus, in short disclosure made in writing regarding the
5

important information and the consideration will made and raise knowledge among the
client.
2)
Answer:
As a special requirement of client regarding hearing disability in order to develop
rapport it is essential that the creation of financial understanding will be raise with the use
of the visuals and presentation. A use of visual by containing the explanation regarding the
financial tools and products including the positive and negative aspects will lead to have a
creation of better financial understanding. This will also be beneficial for meeting the
requirement of client because as visuals and presentation will be made visible to them so
any query or additional information required by client will be made presented on the spot
and in easy manner. Apart from that physical demonstration can also be used in order to
meet client requirement by presenting the market information and financial data.
3)
Answer:
In case of dealing with the client possessing special need including hearing
disability, it is very essential that the communication will be made as per the client need
and understanding. Since communication will lead to have creation of understanding and
knowledge and if it is not efficient and effective then it will lead to have loosing of deal.
Using of gestures, body language, visuals, facial expression, body actions and many other
techniques will be adopted in order to make the communication effective and as per the
client requirement (Miller and Poston, 2020). It can also be right to said that making of
communication in the language and mode of client requirement will lead to have better
understanding and the raising of knowledge among the client. This will also raise the
chances of cracking the deal too.
6

4)
Answer:
Avoiding jargon is very essential in order to make the communication effective. This
is because persistence of jargon will lead to have non adequate level of understanding and
delivery of message. In-effective mode of communication and non-delivery of message as
per the client requirement will lead to have the emergence of jargon. Whatever the type of
communication would be including the oral and written if it is not made clear then it will
lead to have improper and wrong understanding and interpretation of the message. This
will also block the delivery of real meaning of message. Thus, using of adequate expression,
gestures, postures, facial expression will lead to have delivery of exact meaning and
avoidance of jargon with regard to the dealing with client of special requirement of hearing
disability.
5)
Answer:
Broking options:
There are broadly two types of broking options that are traded in ASX, which are:
Call option:
As per this option the right is given to taker regarding the underlying shares but it does not
include any obligation (Guides, 2018).
The value of call option falls with a fall in stock price.
The biggest advantage of call option is to raise the gain in the stock price. This means that before
expiration too the gain raises.
Loss of paid premium is the biggest disadvantage of call option.
Loosing of value with respect to time because of the fixed time expiration regarding with call
option is the biggest risk.
7

Put option:
Here rights are given to taker but no there is no obligation regarding the sells of underlying
shares.
The value of put option raise with the falling stock prices too because they have right to sale
above the declining stock prices too.
The main advantage includes the protection from falling prices, limited liability, benefit from
higher prices too (Horambe and et.al., 2021).
The disadvantage may include the movement of price in the opposite direction of the investor
want and need.
As the buyer will be benefitted only when price will move down so it will automatically become
a risk.
Thus, as per the above disclosure of the options with respect to client the most suitable will need
to be chosen by having a comparison of every associated factors and aspects.
6)
Answer:
Explanation regarding the brokerage fee, charges and commission need to be made
in advance and clear with respect to the client. This is because in order to render the
services client need to pay a fixed percentage of commission, brokerage charges and fee to
the broker (Durston and Zaidi, 2018). However, the charges and the fee is minimal but it is
essential to be paid and it is made clear to the client well before initiating the deal.
7)
Answer:
The information and the documents that is provided to the client are as follows:
Constitutional document certified copies.
Details regarding the shareholder of the entity.
8

Business plan of upcoming 3 years.
Details regarding the senior managers and the proposed directors.
These documents will need to be provided to the client so that the doubts and the questions in the
mind of client regarding the investment will be made clear.
8)
Answer:
Disclosure of all the information along with any commercial relationship with the
organization is made compulsory as per disclosure agreement of the trade. As it is very
essential for the representative and the broking agent to disclose all the required and
necessary details regarding the relationship and every other aspect which it shares with
the organization and may affect the client’s decision need to be disclosed in advance before
initiating the deal and the investment (Zabolotna and Pavliuk, 2019). This will lead to have
better decision making by the client. It is here to be noted that if the representative will
have any relation with the organization’s product or service then it will lead to have
biasness with respect to client in terms of delivering the information and affect the client
decision. Thus, this disclosure will be made in advance so that client can take best decision
as per its well.
9)
Answer:
Ethical issue is one of the major issue concerning with the performance of deal and
need to be made consulted with other professionals too. As per this issue it is essential for
every concerned professional that the ethical consideration and laws will not be violated
and hurt. Ethical consideration in terms of maintenance of client information
confidentiality and various other concern need to be follow. In order to deal with the issue
formation and compulsory inculcation of ethical consideration need to be made and
9

adopted so that better services will be availed. This will professionally made implemented
while availing the services.
10)
Answer:
In order to obtain information from the client, a feedback form may be signed and
review will need to be collect. If the client will understand the all delivered information in
the exact sense then it will indicate the exact creation of understanding. However, a
negative feedback will indicate the creation of no or wrong information. It will also act as a
confirmation from the client because it will include their review. This process will also
enable the agent to identify the loopholes and the concerned issue so that it will be
corrected and more detailed and clear information will be provided.
11)
Answer:
Carrying out this process will lead to have better negotiation and performance of
the task. As when client will give its feedback then the concern issue regarding the prices
or the schemes will be made clear and the client need will be identified. Focus over the
client need and responding appropriately will lead to have better delivery of information
and message and as a result better negotiation and finalization of deal will take place with
the concern and agreement of both the parties. This is due to the making and presentation
of the appropriate recommendation regarding the investment options from the concerned
authority to the client.
12)
Answer:
10

The legislative requirement, industry regulations, codes of practice with regard to
brokerage sector and industry are all made in order to offer fair deal to the client. Likewise,
it is made compulsory for every concerned company to have a compliance of the concerned
rules and regulations so that the best and transparent services can be rendered. This can
also be understood as persistence of diploma in finance and mortgage broking
management and some similar degree by broking agent is made compulsory. Likewise,
creation of rapport as per client requirement, disclosure agreement compliance, holding of
licenses, presentation of information as per the special requirement of the client, showing
the representative relation with the company, disclosing business plan of upcoming years,
ethical consideration and various other are counted as legal requirement, regulations and
codes are made abidance with the broking industry and the sector which is needed to be
complied and followed by every organization concerning the same business. This will lead
to better performance of business along with creation of trust from the client towards the
company will be made possible.
13)
On the basis of discussion, broking industry can deal with the complaints of different
individual’s so that it ensure to maintain a proper communication channels. Generally, it has
been followed the different complaint handling procedures :-
 By using online media channels, in order to listen the particular complaint for client and
bring the matter with attention. In case, if any kind of complex situation occurs, it also
apologise and accept the ownership.
 Record details of complaints- broking industry keep record the detailed of complaint so
that it cannot repeat again.
 Get all facts- Check and understand all facts in order to fix the problem immediately.
 Take follow-up- contact the client and find out if, they were completely satisfied with
complaint and handled.
11

14)
In order to obtain a legal agreement between client and broken agent regarding the financial and
commercial loan services.
Under specific term & condition, both parties are signed service agreement and keep record
documentation in both parties.
Within legal agreement, it include all information such as:-
 Client Name
 Address of broker agency
 Contract duration
 Scope of work
 Clear payment schedule
15)
After successfully interact with client in accordance industry requirement and organisational
guideline. It should be included the document related elicitation activity which means that
assume opinion or view point of client. It make sure that enterprise taking detailed notes at the
time of client interaction (Zabolotna and Pavliuk, 2019).
On the other hand, broking industry and organisational guideline that will be maintain a
transparency with requirements client documentation. It fosters a sense of client to confirm the
response with agreement and getting their sign-off. It is true for meeting notes. Requirement
artefact that are creating
12

16)
Broker agent will communicate with client and provide all information about the services,
payment policies and procedures. If a client will satisfy with all documentation information
which may be provided by agent. On the basis of legal agreement, client will be giving their
confirmation.
At that time, it should include all essential or relevant documentation and contract variation like:-
Client Agreement
This agreement is established on broking industry and both parties are satisfied with legal
policies.
Services Rendered
 Industry agree to perform financial and commercial services agreement which ,may
include
 Commercial loan
 Payment and transaction
 Financial investment
Payment
Client and broker industry agree that services in described the contract and completed for 2
days. Client agrees to pay company and acceptable the services.
17)
The broking industry has been signed the documentation in regards of instructing and
purchasing. In case, If a client can purchase and investment so that it must require to follow all
legal policies and procedures (Yadav, 2021). The documentation signed by Client are known as
procurement files such as Request for information, request for proposal and request for
Quotation. Each and every document server a different purpose.
13

The documentation has been required at the time of purchasing where client must read all
instruction carefully and decide to purchase. This is not only formulates but it is kind of legal
agreement between broking industry and client.
18)
In order to establish a communication to client but it must consider their complex needs and then
focus on giving post broking services.
The outline the post-broking service refers to the process that take place once a broking trade has
taken place. It enable the safe transfer of ownership and include all securities in which proceed
from buyer to seller. Within post-broking services, it include clearing, asset servicing and
reporting.
At certain place, it has immediately provide the better broking services such as investing,
purchasing real estate, commercial loan etc.
19)
In context of legislation and regulation, broking industry has been implement securities exchange
act of 1934, the feature of this legislation when it is always maintain broker dealer under specific
circumstance.
In code of stock brokers, the feature of this practice in order to maintain high standards of
integrity. It is always supports for maintain a fairness in broking industry (Mann, Daly and
Molnar, 2020). A stock-broker, shall as act with specific skill, care and diligence in conduct of
all kind of broking business.
On the basis of evidence, different legislation and regulation, code of practices are affecting the
broking industry. It is always support for improving the current business legal rights and
protection of client needs.
14

20)
Verbal communication- this type of communication is one the most obvious and understood
mode of communication. it is also consider a powerful tool in communication tool box.
Writing- It is generally archived and recorded because client has a complex need of hearing
problem. That’s why, written communication prefer to share information and identify its specific
needs (Broker, Durr and Smith, 2019). This type of communication is one of the great
opportunity for client because it can easily understand the documentation needs. Otherwise, it
may arise a problem if in case, it is not appropriate at all because of client complex needs.
Non-verbal Communication- this type of communication is related to active listening. But
according to client need, it is mainly used on Facial expression as communication aspect.
Facial expression may help to establish a communication with person in order to represent
satisfied and dis-satisfied opinion. This type of non-verbal communication plays important role
in which support for gathering large information by client. At the time of discussion with
financial advisor. So as, it is important to select the right communication approach so that it can
easily satisfy all necessary requirement of client and also meet its expectation level.
Written questions
1.
This is because it helps it will help client to understand what are their needs that can be
fulfilled with current finance available. Also, it makes it easy for client to know what
type of needs can be fulfilled easily with that. They are able to make changes in needs
accordingly.
2.
15

This can be done by matching the needs that are formed with objectives set. Moreover, it
can be done by asking client that what are their needs that can be easily fulfilled. Hence,
in this client need can be directly applied from it.
3.
Here, verbal communication skills can be demonstrated with help of e mail, text, call, etc. by
communicating with client. Besides that, non verbal skill can be demonstrated by
meeting client face to face, showing them presentation, etc. so, in this way skills can be
demonstrated.
4.
Here, I can use many methods such as by showing services on template, by showing
statistics, etc. another method that I can use is showing presentation and previous data
and info which can be useful for client. So, these are methods that I can use it.
5.
This is because it helps in clear flow of message between client and other people. Also, it is
useful as there is no confusion and misunderstanding of data and info with client.
Besides that, it helps in ensuring that client understood what is said in written and oral.
6.
In this info related to accounting flow, principles, and system, etc. must be included. Besides
that, all financial statement must be also included in this. The statement must be of
previous financial year. Thus, these all info must be disclosed along with organisation
guidelines.
16

7.
In this it must be explained to client regarding benefit and impact of each product. Besides,
broker must explain what are pros and cons of each options, risk in it, etc. in addition,
broker should also clearly discuss with client regarding assumption and possibility of
each option available.
8.
Here, broker must explain to client the way he is compensated for services. Generally,
broker are paid in 3 form (Varma, and Agarwalla, 2020). The first is commission paid by
bank for services. Secondly is loan origination fee and third is compensation from lender.
Also, source of earning and percentage applicable must be explained as well.
9.
This is important to maintain honesty and transparency with client. The relationship of the
broker and the product or service might affect the recommendations of the broker for
them and hence is important for the client to know. The client should be informed so as
to reject the offer if he finds recommendation is biased.
10.
In case of financial service, the service provider must find issue before giving any advice to
client. Also, service provider must not get nervous with info available to other people. If
issues are not being addressed by than service provider must not led client in
misleading.
11.
17

The broker must explain client about pros and cons of each product. Also, what are risk
associated with it. Besides, customer can ask various question to client as well. Thus,
broker must answer all question of client until the client is not satisfied with responses
provided.
12. O
Listen to client properly
Ask question to confirm client has understood
Providing all info to client accurate and precise.
All queries and concern of client is responded properly
Should explain client in polite and easy manner
Can take help of another person if required
Must provide extra info if available
13.
In this different options must be evaluated and assessed and then provide range of solution
to client. Also, broker must ensure that different options must met the expectation of
client. Moreover, risk and benefit of each option must be provided as well. This can be
recommended to client (Vardhan, and Lakshmi, 2020).
14.
The limit set by regulatory and organisation guidelines to be followed in giving services to
clients. Besides that, service provider is allowed to offer services on basis of their
training, experience, etc. also, service provider must adhere to qualification and training
given to them.
18

15.
The procedure is defined as
Find out reason for complaint
How complaint can be handle and options for that
Explain complaint resolution process
Document details of complaint completely
Keep inform client about complaint progress
Provide contact no to client in case of any other complaint
16.
It must be obtained in written form. In case the client with special needs, there must be
other person with them for assistance. The service provider should discus all the steps
that need to be taken once the client agrees to proceed. The process should be provided
to the client in writing.
17.
There are various documents which is required that is as follows:
Application of client
Copy of disclaimers
All disclosure in simple language
Written advice given to client
So, all these document must be taken in hard and soft copy as well along with original
paper.
19

18.
This is necessary because it shows that client has agreed on taking of services. Besides that,
client is giving permission to service provider to act in specified manner on their behalf.
So, client share responsibility of act of broker on his or her behalf (Durga, and Lakshmi,
2020).
19.
There are various post broking services that is included in it. They are defined as
Update and change in client situation or needs
Change in latest event
Current financial service given to client
Maintaining of investment of client
After sales services given to client
20.
a. Visual or hearing impairment- in this audio record can be used which contain all
info. It will enable client to understand it.
b. English as a second language- here, client can be given info in his or her own
mother language. Also, an interpreter can be provided as well for it.
c. Cultural differences- in this broker can speak to one or other gender. Besides, all
cultural ethics and values can be followed by broker.
20

21

REFERENCES
Book and Journals
Broker, T., Durr, D. and Smith, L.M., 2019. Analysis of the global energy industry, climate
change and financial matters: the need for effective corporate governance. International
Journal of Corporate Governance. 10(3-4). pp.185-208.
Durga, M.G.N. and Lakshmi, M.S.B., 2020 A STUDY ON PORTFOLIO MANAGEMENT AT
SECURITIES BROKING COMPANY.
Durston, G.J. and Zaidi, M., 2018. The Little Book of Insider Dealing. Waterside Press.
Guides, T.S., 2018. Call Option vs Put Option–Introduction to Options Trading.
Horambe, and et.al., 2021. Algorithmic Approach to Options Trading.
Mann, M., Daly, A. and Molnar, A., 2020. Regulatory arbitrage and transnational surveillance:
Australia's extraterritorial assistance to access encrypted communications. Internet Policy
Review. 9(3). pp.1-20.
Miller, C. and Poston, M., 2020. Types of Nonverbal Communication. Exploring
Communication in the Real World.
Vardhan, M.C.V. and Lakshmi, M.B., 2020 A STUDY ON SYSTEMATIC RISK WITH
REFERENCE TO SELECTED BANKS AT STOCK BROKING COMPANY.
Varma, J.R. and Agarwalla, S.K., 2020. Prime Broking Default at the National Stock
Exchange. Indian Institute of Management Ahmedabad.
Yadav, Y., 2021. The Failed Regulation of US Treasury Markets. Columbia Law Review. 121(4).
Zabolotna, N.Y. and Pavliuk, N.M., 2019. Privacy and Professional Secret as the Key Categories
in a Non-Disclosure Agreement. JE Eur. L., p.97.
22