Identify and Develop Broking Options for Clients with Complex Needs

Identify and develop broking options for
clients with complex needs
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Table of Contents
Written activity............................................................................................................................3
Third party report.........................................................................................................................3
Research task...............................................................................................................................4
REFERENCES..............................................................................................................................11
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Written activity
Relevant Legislation, Regulations and Codes of Practice.
The insurance industry is governed by Mortgage & Finance Association of Australia
(MFAA). The ASIC provides regulatory guidelines to be followed.
Corporations Act 2001 state that a single licensing regime for financial sales, advice and
dealings and a specific procedure for financial exchanges.
The broker must be authorized under the Australian Financial services (AFS) license.
Key Products Available In the Broking Industry
The products are:
Mortgage Brokers- they help the borrowers in selecting and then applying for mortgage finance
for residential as well as investment in real estate (Agrawal and Mittal, 2019).
Insurance Brokerage- These help the clients in selecting the insurance plans that fulfil their
needs.
Stock Brokerage- They provide services related to investment in the stock markets. Here, a
portfolio is offered to client on basis of their needs.
Commercial loan brokerage- The brokers help the business in acquiring commercial loans to
meet the needs of their business.
Relevant Risk Issues
Borrowing risk and gearing – it refers to taking debt to invest in capital assets as compared to
the equity. It is the measure of the financial leverage of the company. So, high gear has high
risk.
Specific product risk- it is related to specific product. In this the product selected by client may
fail in financial market.
Institutional risk- It is associated with a particular organisation. The business may not be able
to achieve its goals and objectives. (Akshay Kumar and Archana, 2019)
Volatility of income and capital- The risk that the future income and capital might change.
As future is uncertain so level of change is also uncertain.
Third party report
1. List of complex needs and features
They are n
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2. client risk issues and tolerance
Risk issues are delay in legal procedure.
Insufficient amount to pay for broking
Illegal registration of land
3. Impact of risk on client
The organisation will have to bear huge financial loss
It will impact on its brand image
Any legal change in procedure of broking will increase cost of asset.
4. Determine opportunities and constraints
Opportunities are
Change of broker.
Rise in investment
Constraints are
High chances of risk with rise in investment
5. Research loan structure
The loan structure is as follows :
Interest rate
Loan to value
Monthly payment
6. Complex financial issues
The complex issues are :
In terms of legislation is fees and charges of brokerage which needs to be paid
In terms of tax is the rate at which tax is to be paid
In insurance is amount paid for it.
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