Financial Services Compliance Assessment

This document is a comprehensive assessment focused on the legal and regulatory framework within the financial services industry. It covers key elements such as evaluating legal contexts, identifying compliance requirements, developing procedures to ensure adherence, and monitoring compliance effectiveness. The assessment includes detailed instructions, example scenarios, and verification statements for practical application.

Assessment Tool Page 1 of 55
FNSACC403B: Make decisions in a legal context.
Name of Participant:............................................... Date:.....................................
Element of Competency
1. Evaluate legal context for financial services work
2. Identify compliance requirements.
3. Develop procedures to ensure compliance.
Complete the following assessment tasks and ensure that any manual printouts of
evidence are signed by yourself in the bottom right hand corner. The completed
Assessment Tasks and any evidence must be provided to your Trainer in order to be
assessed on the subject, and ultimately marked Competent.
User Guide Activities
The course activities will require you to work through both the Make Decisions in a
Legal Context (FNSACC403B) User Guide.
Activity Task 1 – UG Topic 1.1
a) Write down a list of some of the decisions you could make as part of your daily
tasks within the Financial Services Industry?
1. It is the duty of the financial manager to provides report, developing strategies,
financial organizational plans for the Financial Service Industry.
2. The Financial Managers is used to provide services in many places like banks
and other insurance companies.
3. They help in the preparation in the business activity along with the financial
reports.
4. helps in final financial reports and helps to review in reduce costs
5. Helps in taking decision and looks for the financial marketing opportunities for
expanding the strategies.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning
ASSESSMENT TOOL
Part # 321ATF10VOL
Version # 4.12.1

Assessment Tool Page 2 of 55
a) List the Acts, legislation or laws that you are aware of that may affect the way
that you make these decisions.
The legislations are The Australian Securities and Investment Commission
(ASIC), Australian Prudential Regulatory Authority (APRA), Australian
Competition and Consumer Commission (ACCC) AND Anti-Money Laundering
and Counter-Terrorism Financing Act 2008.
b) How could you ensure that you are up to date with changes to the legislation
listed in your answer above?
It is necessary to ensure about all the details of the legislations, which related
with financial services and must keep the records of the details about the new
updates. It is also need to track down about the records where the details of
update legislations need to mention.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 3 of 55
c) Explain the consequences that could be enforced if you fail to comply with
these requirements.
According to the all legislations in the Financial Industry it is necessary to ensure
about the details about it and the legislations has made for the keeping the
regulation for the people who are related with the financial industry. If the
legislations are not followed according o the Code of Conduct then they ,ay face
the consequences and it may affect in their financial occupations.
Activity Task 2 – UG Topics 1.2
a) With reference to the three tables listed in this section, who is the main
supervisor/regulator of the Australian Banking Industry?
The Australian Prudential Regulation Authority (APRA)
The Australian Securities and Investments Commission (ASIC)
The Reserve Bank of Australia (RBA);
The Australian Treasury.
The Council of Financial Regulators (CFR).
b) Access the ASIC website and access the section that covers the compliance
requirements that apply to your business within the Financial Services Industry:
http://www.asic.gov.au/asic/ASIC.ASF/byHeadline/Codes-of-practice
c) Select and print one Code of Practice relevant to your organisation.
 Read through the Code and record three key points extracted from the Code in the
space provided below.
 In addition, undertake some research and locate information in regards to the
penalties that can be imposed in the case of non-compliance against the Code.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 4 of 55
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 5 of 55
Code of Conduct: Code of Banking Practice
Key Point 1: the code provides a new commitment to small businesses consumers ten
written days notice of changes materially adverse alteration in the credit facilities.
(unless the alterations are also applicable on to the othe small businesses facilities or a
shorter period of notice is required for reducing or voiding the increase in the credit risk
of the bank.)
Key Point 2: commitment has been provided to those customers in the indigenous
remote communities which includes commitment to record information in relation to
available banking services in a manner accessible and towards assisting the customer
to meet the requirements of identification.
Key Point 3: Provisions in order to deal with those customers who are in financial
difficulties which also includes commitment towards dealing with an authorised financial
representative or counsellor on request for the purpose of providing a written response
along with reasons for making a assistance request and also to include details about
the dealing processes with financially challenged people on the bank website.
Penalties for non-compliance: where the code it not complied with it results in financial
penalties and fines as well as cancellation of licence in certain situations resulting out
of serious breaches
Activity Task 3 – UG Topic 1.3
a) Choose a Code of Practice or an Act from the list within this section of the User
guide and describe its purpose and how it affects the Financial Services
Industry.
Act/CoP : The National Consumer Credit Protection Act 2009
Website: http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Codes-of-practice
Purpose: The purpose is ensuring the benefits of equivalent, which helps to
protect from the air, soil and pollution and noises. The Business also helps to set
the protocols, guidelines, standard and protocols.
Effect on Financial Services Industry:
The act helps to protect the ambient the quality of air, marine, fresh water. The
environmental protection, which are hazardous wastes and the motor vehicle and
emissions.
b) List any other Acts you are aware of, that are applicable to the Financial
Services Industry, which were not listed here.
The Taxation Administration Act 1953 is one of the important acts, which is
applicable in the Financial Industry helps in managing the interpretation,
management and enforcement in the Australian Tax System.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 6 of 55
c) Discuss below the importance of non-financial related legislation such as
environmental or OH&S requirements.
The Occupational Health and Safety (OH&S) is one of the important legislation
which help in provide the safety for the workers and the public in their workplace
and the safe workplace environment for the employees must be provided by the
employers. Now the employees will have responsibilities according to the
employers, supervisors or team leaders and the employees. Both Commonwealth
and state bodies control health and safety in the workplace. Within these OH&S
Acts are OH&S Regulations, Standards, Codes of Practice and guidelines
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 7 of 55
Activity Task 4 – Research Activity – UG Topics 1.4 – 1.5
(a) Undertake some research on the website for Certified Practicing Accountants and
locate information in regards to the statutory requirements for CPA membership.
Requirements for membership
For the purpose of becoming a CPA member a person must hold a degree which is
recognised by CPA Australia in any discipline.
The person must have completed the CPA program, which includes the persons
experience within a time frame of six years.
Examination process
a foundation examination is conducted by the CPA for the purpose of giving those who
are not having a degree in the fields of finance are provided the opportunity to complete
a CPA program.
Other requirements
the person making an application has to provide personal details, payment of application
fees and supporting documents for being eligible to make an application
Timeframes for compliance
the exam has to be scheduled between 12 months of enrolment.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 8 of 55
(b) Apart from a statutory requirement, discuss some other advantages that
may be realised by becoming a CPA.
CPA certified accountant are considered to have lot more expertise that a normal
accountant; the is a need for CPA accountants everywhere as they are trusted;
payments which are made to CPA certified
(c) What methods can you undertake to assist you in maintaining up to date
knowledge on the governing requirements that affect you (legislation/Acts,
location of information, etc.) - How often should you do this? (Hint – maybe look
for some historical version information?)
Legislation - methods Frequency of check
Information from Industry website Daily
Governing Body Website Monthly
Experienced book keepers Monthly
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 9 of 55
(d) Refer to the Real Life Example, Changes to Statutory Requirements for Tax
Agents in Section 1.4 of this user guide and use the information within this
section (or elsewhere if required) to complete the following:
What are the current requirements?
Bookkeepers who work on a contractual
basis have to hold a professional
indemnity insurance an must be
registered as a BAS agent.
Who does this affect? All tax practitioners registered with the
TPB.
What are the current processes? No statues currently exists in relation
to PI insurance.
What needs to be changed? All Tax Practitioners will be required to
either take out PI insurance or check
that their cover is in line with the
requirements as set out by the TPB.
What needs to be done?
The TPB will be contacting all
registered
agents to outline PI requirements.
Each
tax professional will need to refer to
this
documentation or locate it within the
TPB
website to ensure that their cover is
adequate.
Each current PI policy will need to be
checked to ensure that it meets the
requirements outlined by the TPB.
When does this have to be done
by? (Statutory Timeframes)
All agents will need to notify
the Board of
their PI insurance status by 1
July 2011.
What are the penalties for non
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 10 of 55
compliance?
an agent fails to maintain PI
cover that
meets the Board’s
requirements, the
Board may sanction the agent
for a
breach of the Code under
section 30-
10(13) of the TASA. Depending
on the
circumstances, the sanctions
available to
the Board range from cautions
to
suspension or termination of an
agent’s
registration
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 11 of 55
Activity Task 5 – UG Topics 1.6 – 1.7
(a) Describe an example of why a business in the Financial Services Industry
could potentially be involved in a court case for each type of common
law.
Negligence
If any injury or a person is identified with a negligence activity and someone
affected and faced any damages or loss due to the duty of care then it will
recognize as negligence.
Contract Law
Contract is define as a mutual agreement between two parties where it should
formalise a promise which must be legally binding. Under the contract the
agreement could made for buying a house pr car, for repay the loan.
Employment Law
The Employment law provides the consequences for the employees where an
employee must got the employment under this act. The Act also provides the
leaves, services, time allowable and on the terms of the employment this act also
provides under an employment contract which provides the legislations and
protect from every workplace bullying and sexual harassment.
Criminal Law
The Criminal Act of Australia has legislated the part, which helps to provide the
protection from the crime, which is included like assault, robbery, fraud and
harassments. This law provide the protection under the Criminal activities.
Environmental Law
The Environmental provides the legislations where it is regulated by the
governing body of Australia and helps to manage the management of the
environment. Under the Environmental Law it protects the area which iare
affected by the pollution, waste, green house gases, recycling and natural
resources.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 12 of 55
(b) Refer to the common law case examples within this section of the user guide and
discuss the following points with your group/supervisor.
Real Life Case #3 - Negligence
Outline of case – In the case of ASIC v Brighton Hall Securities Pty Ltd (in
Liquidation) the negligence has found and the compensations has been claimed.
Damages sought/awarded
According to the case study, the damage has occur due to the negligence by the
Brighton Hall Securities who carried a financial service business and ASIC has
charged against them for the negligent act and claimed $14 million as
compensations.
Issues argued
The issues has been argued by the ASIC that the negligence has occur for the
parties where they have aimed to preventing the need to commence litigation.
Now the ASIC has the rights to the Section 50 of the ASIC act where it will
applicable on the begin and carry on civil proceeding for damages for investors
where it appears and proceeds according to the public interest.
Real Life Case #4 – Unfair dismissal
Outline of case
Candyce Arathoon v Zurich Financial Services Australia Limited
Damages sought/awarded
In this case the Australian Industrial Commission has found that a person
employment Has been unjust or unreasonable. in this settlement the
discontinuance matter has been put under the conciliation process and given
statement provided against the client by the unreasonable actions.
Issues argued
In this case the Australian Industrial Commission has found that a person
employment Has been unjust or unreasonable. in this settlement the
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 13 of 55
discontinuance matter has been put under the conciliation process and given
statement provided against the client by the unreasonable actions. in such
situation the former commission comments on this case where the representative
submitted the previous statement where it also offers the prejudice offer.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 14 of 55
Activity Task 6 – UG Topic 1.8
(a) List four instances which could happen in a workplace that are subject to a
certain Act, legislation or law (e.g. provision of a privacy policy statement). Refer
to the legislation or Act and list the possible penalties for non compliance (You
may need to do some research!).
1.
Act, legislation or law: Corporation Act 2001 (Cth) – breach of officers duties
Non compliance penalty: civil penalties $200000 for individuals.
2.
Act, legislation or law: Privacy Act 1986
Non-compliance penalty: Breach of confidentiality in relation to private documents
of clients may result in fines and penalties.
3.
Fair Work Act 2009
Nor providing employment rights to the employees of the business may result in
penalties and compensation.
4.
Australian Human Rights Commission Act 1986
Where any person in ill treated within the work place- fines and penalties to
compensate the employee
(b) Refer back to the Real Life Example #1 (PI insurance) in the Researching
Legislative, Statutory and Regulatory Requirements section of this user guide
and undertake some research to find the potential penalties that could
apply.
Non-compliance of requirements in relation to professional indemnity insurance
can lead to the termination of the registration as the agents would not comply
with the registration requirements and the breach of the code of conduct.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 15 of 55
(c) Discuss how these penalties could affect you, your business, and your industry.
You
if I do not comply with the PI insurance provisions my registration may be
suspended as I would not be meeting the criteria for the registration as well as
would be breaching the code of conduct
Business
the penalties would mean that the businesses must ensure that the employees
have professional indemnity insurance or else they would be liable for employer
non registered agents.
Industry
The industry would have a good effect of the penalties as most of the agents
would incorporate a PI insurance and therefore the risk of negligence in the
industry would be reduced.
Activity Task 7 – Individual Knowledge Check- Unit 1
Use this quiz to check your knowledge of the content covered in this topic. Challenge
yourself by attempting to answer all questions initially without reference to your notes.
(a) Complete this sentence: The Australian Financial Services Industry is one of the
fastest growing sectors in the Australian economy and is the…
 United States is the second largest sector in the economy.
 China is the third largest sector in the economy.
 Germany is the fourth largest sector in the economy.
(b) Who are the two main regulators of Financial Institutions in Australia?
1) Australian Prudential Regulation Authority (APRA)___________________
2) Australian Securities & Investments Commission (ASIC)______________
(c) What are the three main types of Financial Institutions in Australia?
Provide an example of each.
Type: Authorised Deposit-taking Institutions (ADIs)_________________
Example: bank, Building Societies, credit Unions_______________
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 16 of 55
Type: Non-ADI Financial Institutions__________________________________
Example: Money Market Corporation, Finance Companies and Securities____
Type: Insurers and Funds Managers__________________________________
Example: Life Insurance Companies, General Insurance Companies, Superannuation
and Approved Deposit Funds (ADFs)__________________________________
(d) Apart from the two Regulators identified at question (b), list three other key
pieces of Legislation, Act or Codes applicable to the Financial Services Industry.
1) Taxation Administration Act 1953__________________
2) Privacy Act 1988_______________________________
3) Financial Transactions Reports Act 1988 (FTR Act)____
(e) List five (5) possible ramifications should a member of the Australian Financial
Service Industry breach an Act, legislation or law.
1) The anti-money laundering and counter-terrorism financing (AML/CTF)_____
2) Occupational Health and Safety (OH&S) Legislation
3) Competition and Consumer Act 2010________________________________
4) National Environment Protection Council (NEPC)______________________
5) The Financial Services Reform Act_________________________________
Activity Task 8 – Case Study Activity
Refer to the Real Life Example #5 - Fraud Case in the Failure to Comply with Common
Law section of this user guide and answer the following questions.
(a) What common law has this bookkeeper broken?
Fraud- this is because she had intentionally used her position to direct the money
to her bank account a caused financial losses to the company and its clients
(b) What court would this case have been tried in? Why?
County Court- it has been provided through the example she had been trailed at
the county court
(c) What was her role in the workplace?
She was a bookkeeper having the responsibility to transfer payments form the
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 17 of 55
company
(d) How did she commit her fraud?
Instead of making the transfer of payments to the clients she directed the
payments to her own account.
(e) What factors did she say contributed to her decision to defraud the company?
She had a mother who gambling debts. She had lost respect for the managers of
the company. She spent the money to by hand bags and take her family on
holidays.
(f) In preparation for the next chapter of the user guide, what processes could have
been implemented in an effort to stop this offense from occurring?
Process such as strict supervisions over the activities of employees who have a
financial role in the organization have to be implemented to ensure that there is
no future occurrence of such crime.
Activity Task 9 – UG Topics 2.1 – 2.2
Discuss and record your group responses to the questions below.
(a) How and where does your organisation keep a record of their policies and
procedures, e.g. online, printed?
Correct policies and procedures are critical to the daily practices and
legal compliance of any workplace. They not only give staff members a
complete
guide to their job requirements, but also form the basis for other
documents such
as job descriptions and employment contracts.
Policy: Policy documents outline the protocols, standards and objectives of a
company or workplace. They outline expectations, beliefs and any moral
behaviours that must be followed whilst in the process of performing any duties
with the workplace.
Procedure: Procedure documents are written for staff members to follow and
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 18 of 55
they outline the steps that are required to meet the policies and general
workplace requirements of the company.
(b) Who within your organisation is responsible for updating the policies and
procedures?
Correct policies and procedures are critical to the daily practices and legal
compliance of any workplace. They not only give staff members a complete
guide to their job requirements, but also form the basis for other documents such
as job descriptions and employment contracts.
(c) How can you keep up to date with changes to policies and procedures?
1. be written in consultation with applicable persons such as department
managers, supervisors and/or consultants.
2. be easy to follow, using plain language that is relevant and easy to
understand.
3. identify the positions to which the procedure is applicable (avoid staff
member names as they can become dated).
4. describe the precise processes to be undertaken in sequence, including
and timeframes and legislative requirements.
(d) What steps could you undertake to ensure that the behaviours demonstrated
within the workplace meet the requirements set out in the documents below:
Document Behaviour
Mission Statement
Company Charter
A mission statement is a usually a short purpose
written statement that spells out the overall
goals, purposes or convictions of the company.
Every task that is undertaken should be
influenced by the company mission statement or
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 19 of 55
Document Behaviour
charter.
Code of Conduct A code of conduct depicts the behaviors that
are expected within the workplace. It outlines
such behavior requirements as:
• Honesty and integrity
• Independence
• Confidentiality
• Competence
Induction Program
Employee Handbook
Internal Procedures
OH&S and WH&S
Usually contains the organizational flowchart of
the company, code of conduct, explains what are
accepted physical working environments,
information on discrimination or harassment, how
to claim expenses, etc.
Privacy Act By law, your company must disclose its
commitment on obtaining and holding
information about customers, suppliers and
Employees.
IT Policy Lists the rules on what data and software can be
loaded onto computers. Also contains rules
about what sites are allowed to be visited on the
Internet.
Business Plans and
Strategies
Describes the company’s goals and objectives
for a period of time. It will also advise what
measurement process will be used to analyse
the goals and objectives throughout the year.
(e) Choose a topic applicable to your workplace or the financial services industry and
outline the steps that you would undertake to plan and create a procedures
document including:
Topic
Mission Statement or Company Charter
Relevant policies
Policy documents outline the protocols, standards and objectives of a
company or workplace. They outline expectations, beliefs and any moral
behaviours that must be followed whilst in the process of performing any duties
with the workplace.
Relevant legislation or Acts
Occupational Health and Safety (OH&S) Legislation
Consultation required
A mission statement is a usually a short purpose written statement that spells out
the overall goals, purposes or convictions of the company. Every task that is
undertaken should be influenced by the company mission statement or charter.
.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 20 of 55
Authorisation steps
Procedure documents are written for staff members to follow and
they outline the steps that are required to meet the policies and general
workplace requirements of the company.
Communication and implementation processes
All financial advisors are bound by these legal requirements as a measure of
protection for both themselves and their clients. Finance industry members who
give advice or act outside of these restrictions may find themselves liable for any
losses sustained by their clients, fined, or in extreme cases, prosecuted in a court
of law.
Review and maintenance processes and timeframes
Requests constant referral to the applicable policy.
• Ensures relevant referral steps are undertaken, including consulting with
Governance and Policy units.
• Outlines steps for consultation, drafting, authorization, implementation
and maintenance of documentation.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 21 of 55
(f) Using a program of your choice, for example Microsoft Word, Excel, Publisher or
PowerPoint, create a draft procedures document relevant to the topic outlined
above. If it is a large topic, just create part of it.
Once you have completed this task, save your document and include it with your
Assessment Tool when submitting your work to your Trainer/Assessor.
Activity Task 10 – UG Topic 2.3
Locate and discuss the following terms (include the Acts, legislations and laws that
relate):
(a) The No-Disadvantage Test.
The federal Workplace Relations Act 1996 now necessitate a new workplace
contract to accord with the ‘no-disadvantage test’ (NDT) prior to the agreement
can be enforceable legally. In this test the terms of the contract are compared to
that of the minimum conditions provided by law in order to determine whether any
condition is providing any disadvantage to the employee or not.
Act / legislation / code of practice / law / standard it relates to:
The federal Workplace Relations Act 1996 and Fair Work Act 2009 (Cth)
(b) Australian Fair Pay and Conditions Standard
The Australian Fair Pay and Conditions Standard provide five statutory
requirements in relation to conditions and wages. 1. casual loadings and
basic rates of pay 2. annual leave 3. maximum ordinary hours of work 4.
parental leave and related entitlements 5. personal leave (including carer's
leave and compassionate leave)
Act / legislation / code of practice / law / standard it relates to:
Introduced by the Australian Labour Law 2006 and abolished by Fair Work Act
2009 in 2010.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 22 of 55
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 23 of 55
Activity Task 11 – UG Topic 2.4
(a) Undertake some research and locate two codes of conduct documents. One
from the Financial Services Industry and one from another (or just find the
complete versions of the examples in the User Guide).
The code of conducts are:
• Honesty and integrity
• Independence
• Confidentiality
• Competence
• Other responsibilities (including not knowingly obstructing the proper
Administration of the taxation tax).
(b) Compare the two and outline any differences.
Each of the associations maintains a Code of Conduct (or Code of
Ethics or
similar) which determines standards and guidelines for the behavior of
members
and in support of these categories and principles, administrative
sanctions can be
imposed for breaches of the Code. These may include:
• Association of Chartered Certified Accountants
• Association of Taxation & Management Accountants (ATMA)
• CPA Australia
• Institute of Chartered Accountants in Australia (ICAA)
• National Institute of Accountants (NIA)
• Taxation Institute of Australia (TIA)
• Chartered Institute of Management Accountants (CIMA)
• Australian Association of Professional Bookkeepers (AAPB)
• Institute of Certified Bookkeepers (ICB)
• Association of Certified Bookkeepers Inc. (CBK)
• Association of Accounting Technicians (AAT) Australia
(c) Refer to questions (a) and (b) above then list below the Acts, legislation, or
standards which could also relate to this Code of conduct.
The Australian Prudential Regulation Authority (APRA)
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 24 of 55
Australian Securities & Investments Commission
Privacy Act 1988
Occupational Health and Safety (OH&S) Legislation
Anti-Money Laundering and Counter-Terrorism Financing Reforms
the Corporations Act 2001
The Fair work Act
The Discrimination Act
The Equity Act
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 25 of 55
(d) List five (5) main points of your code of conduct below and explain the possible
ramifications should these requirements not be met.
Code of Conduct main point Penalties for breach
e.g. conflicts of interest Disciplinary Action
Dismissal
Legal Action (for providing insider information)
Involvement in other
employment or business
While the employment in one organization the
employee must not involve with any other
business or employment. under the
Employment law that person may loose
both of the employment or pay the
penalties.
Receiving gifts, gratuities or
bribes
It is an unethical behaviour under the Code of
Conduct that receiving gift, gratitude or
bribes are against of the law. the person
might be punished under the Fair Work
Commission
Offering gifts, gratuities or bribes It is an unethical behavior under the Code of
Conduct that offering gift, gratitude or
bribes are against of the law. the person
might be punished under the Fair Work
Commission
Fair dealings with third parties When under the employment according to the
terms and policies where it is necessary to
deal with fair dealing ethics with the third
parties.
Conflicts of interest The employees are bound to avoid the financial or
other relationship where it may create
conflict with the legitimate business
interest of AUSTAR.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 26 of 55
Activity Task 12 – UG Topic 2.5
(a) Read and discuss below the following ethical dilemma.
Scenario:
Six years ago you commenced employment for a new company owned solely by
Jamie Smith. Recently the company was bought out by his cousin Simone who
now has sole ownership. The buy-out agreement allows Jamie to rent his office
space and use of the printer, fax machine and bookkeeper (you) for an extended
period provided he pays an agreed sum to Simone. As a result, you are now
employed by Simone, but complete bookkeeping for both Simone’s and Jamie’s
companies.
Now Jamie is insisting that you inform him of any financial matters concerning his
cousin’s company, such as deposits, loans, cash flow problems, etc.
You have explained that you thought such questions placed you in an awkward
position; however, he is becoming very insistent, stating that after six years you
have a loyalty to him. He also argued that as he started the company and
because the new owner “is family”, he has the right to know everything that goes
on.
(b) Are you right to have ethical concerns? Why?
__________________________________________________________________
Yes. I am right to have ethical concerns in this scenario as now I am an employee of
Simone. I own him a fiduciary duty of confidentiality in the role of his employee. The
duty of loyalty which I owed to Jamie has ended once I have stopped working for him.
As Jaime is trying to gain information in relation to Simone business which I possess
this is an ethical dilemma for me as on one hand I have Jamie for whom I had worked
for 6 years and Simone who is my present employer.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
(c) What are your obligations? What actions should you take?
__________________________________________________________________
I may obliged to work for the best interest of my employer primarily. I must not use the
information obtained through the company for the personal interest of any other person
and to the detriment of the company. In such situation of a conflict of interest it would
always be my obligation to give importance to the interest of the company which is the
interest of Simone. Thus I should restrain from providing any such information to the
Jamie in relation to the company which have been asked by him.
__________________________________________________________________
__________________________________________________________________
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 27 of 55
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
(d) Which Acts, legislations or laws should be taken into account in this situation?
__________________________________________________________________
I should take into account the provisions of the Corporation Act 2001 (Cth) specially
those which provide under section 180-183 of the legislation. It is my duty under
section 183 of the legislation to not misuse the information of the company for personal
interest or the interest of any other third party. I may also make a breach of the
provisions which have been provided through The Privacy Act 1968 (Cth) in relation to
safeguarding and not leaking confidential information if I pass the information
demanded by Jaime to him.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
(e) What penalties could be levelled directly at you, the bookkeeper, if you provide
the information that is being asked for?
__________________________________________________________________
In case I provide the information which have been asked by Jaime to him I would
breach the provisions of the legislation discussed above. In addition I would also violate
the code of conduct in relation to book keepers. Therefore i may have my licence
cancelled and in addition be asked to compensate the company for any loss which
have been caused by the activities. I may also be liable under the Criminal Code for
such activities.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 28 of 55
Activity Task 13 – UG Topic 2.6
Locate the Financial Planners Association (FPA) of Australia’s website
http://www.fpa.asn.au/. Now use the website and the Financial Planners Code of Ethics
and Rules of Professional Conduct to answer the following questions.
(a) What is the purpose of the FPA?
It is the job of the financial planner to obtain information in regards to
the needs
Of the client and in turn, offer products and services to meet those
needs. In most cases, information about a client and their requirements
is gathered via an interview process.
(b) List the key areas the FPA Code of Ethics and Rules of Professional Practice
covers?
the FPA Code of Ethics and Rules of Professional Practice covers Customer
objectives and financial goals, The client’s acceptance and tolerance of
investment risk, Interview questions and client detail gathering sheets
• Checklist of information to ask for
• Advice disclaimers
• Information storage and use requirements and restrictions
• Lists of information to give to client.
t
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 29 of 55
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 30 of 55
(c) Referring back to the topic 2.6 Interview Templates, describe a possible
instance when a Financial Planner might not act appropriately when using the
interview checklist. Suggest which code of conduct would not be adhered to as
well.
Involvement in other employment or business
While the employment in one organization the employee must not involve with
any other business or employment. under the Employment law that person may
lose both of the employment or pay the penalties.
(d) If the customer felt a complaint was required broadly describe the disciplinary
process that would be followed by the FPA.
the FPA Code of Ethics and Rules of Professional Practice covers Customer
objectives and financial goals, The client’s acceptance and tolerance of
investment risk, Interview questions and client detail gathering sheets
• Checklist of information to ask for
• Advice disclaimers
• Information storage and use requirements and restrictions
• Lists of information to give to client.
(e) Does this website produce a list of Members who are terminated or suspended?
Select your choice.
Yes
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 31 of 55
Activity Task 14 – Research Activity – UG Topic 2.7
g
(a) Locate the SoA for at least three Australian Financial Services companies.
Zurich Financial Services Australia Ltd, Westfield Corporation and Macquarie
Group
(b) List three differences and three similarities.
Differences
1.
Zurich is related to insurance, Westfield is related to retail and Macquarie is
related to banking financial services.
2.
Zurich provides the terms and conditions in relation to how insurance is provided,
Westfield provides the terms and conditions in relation to how the services
provides its services to the retail sector , Macquarie provides the terms and
conditions in relation to how its banking services operate
3.
The risk associated with Zurich is not high if proper disclosure is made, the risk
associated is high and the company has an exclusion clause for such risks,
Macquarie also has an exclusion clause for the risk
Similarities
1.
All three companies provide details about the fees and charges in relation to their
products
2.
All SoA consists about the risk associated with the services
3.
All SoA have detail about the terms and condition of use
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 32 of 55
(c) Access www.tpb.gov.au and select Exposure Draft from the Board menu.
(d) Scroll down the list, select 2010 Exposure Drafts and then click on the link to
Exposure Draft - Letter of Engagement.
(e) Read the document and note down the statutory requirements in terms of the use
of letters of engagement within the following areas.
Is it compulsory to use a letter of engagement?
No it is not compulsory to use a letter of engagement but it is recommended that
that letter is used.
Why should you use a letter of engagement?
The letter is a way of checking that compliance with all necessary regulations is
made while the clients are dealt with. The letter will make the client know how the
business with the company is going to work out and what their rights are. The
content of the letter is different from businesses to businesses.
(f) Refer back to the Real Life Example #1 – BAS Agent and Public Indemnity
Insurance Requirements in the Researching Legislative, Statutory and
Regulatory Requirements section of this user guide in relation to PI insurance.
This can be located on the www.tpb.gov.au site and then from the main menu bar
locate Board, then find their explanatory papers tab.
Undertake some research into PI insurance and see if you can find any
information in regards to “run off” cover that a BAS Agent should consider. Print
the section which outlines about the “run-off” cover.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 33 of 55
Activity Task 15 – UG Topics 2.8 - 2.9
(a) Using a program of your choice, for example Microsoft Word, Excel, Publisher
or PowerPoint, create a table or checklist titled “Audit Checklist” that could be
used by your workplace to keep up to date with compliance news such as:
 Acts, legislation and Statutory requirements that govern the workplace.
 Workplace documentation to be checked.
 Processes to be undertaken to complete audit.
Make sure you address the following as a minimum:
 Date
 Site / information source viewed
 Updates identified
 Statutory timeframes
 Processes undertaken (including timetables for change processes)
 Outcomes
 Expected next follow-up date
Audit Checklist
Date
Site http://www.asic.gov.au/asic/ASIC.ASF/byHeadline/Codes-
of-practice
Updates Nil
Statutory
Timeframes
 The legislations are The Australian Securities and
Investment Commission (ASIC)
 Australian Prudential Regulatory Authority (APRA)
 Australian Competition and Consumer
Commission (ACCC)
 Anti-Money Laundering and Counter-Terrorism
Financing Act 2008.
Processes Processed under the Australian Government
Outcomes To control the Financial Industry
Next Follow-up Date After the updated version, the date will announce.
(b) Complete your “Audit Checklist”, save your work and include it with your
Assessment Tool when submitting your work to your Trainer/Assessor.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 34 of 55
Activity Task 16 – UG Topic 2.10
(a) Discuss and identify two activities undertaken by a financial services operator
that may need input, advice or assistance from other professionals.
Identify the networks able to provide the advice or assistance about the activities.
Explain why it might be appropriate to use the other networks to get assistance
with the activities.
Example:
Activity: Preparing tax return
Referral network: Accountant
Reason: Bookkeepers may not have the requisite knowledge and experience to comply
with the legislation allowing them to prepare tax returns.
Activity: legal Compliance
Referral network: Lawyer
Reason: financial businesses may not have the requisite knowledge and
experience to comply with the legislation allowing them to comply with various
legislations applicable on their businesses.
Activity: Software upgrades and advances
Referral network: Software consultants
Reason: financial businesses may not have the requisite knowledge and
experience about technological knowhows.
(b) Access the ATO website @ www.ato.gov.au.
(c) Locate and complete the application to subscribe to ‘The BAS Agent – free
e-newsletter’.
(d) Print and attach as evidence a copy of the email you send.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 35 of 55
Activity Task 17 – UG Topic 2.10
(a) Conduct research to identify two commercially available software tools
designed to assist in carrying out financial services activities.
Bpm’online Financial Services
Blueprint OneWorld
(b) Explain how these products could assist with the adherence to the
regulatory requirements of the industry.
Bpm’online Financial Services is a CRM which is powerful and have been
designed for retail and corporate financial institutions and banks. A complete set
of tool is provided by the software for financial institutions for allowing compliance
with law and assistance in sale of financial products.
Blueprint OneWorld: the software helps financial organizations to centralize its
corporate information and make the processes involved simple so as to comply
with the required legislations. The organization therefore not only ensures
compliance through the use of such software but is also provided the control over
its corporate data. The software helps the organization to ensure timely
compliance in relation to statutory findings along with corporate record keeping.
The software work in an independent manner or if required alongside the present
compliance system. The software monitor, manage and identify, requirements
enabling it to integrate compliance seamlessly
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 36 of 55
Part A: Written (Question and Answer)
(a) Explain the functions of the following regulatory bodies.
Australian Prudential Regulation Authority
The Australian Prudential Regulation
Authority (APRA) is the prudential
regulator of the Australian Financial
Services Industry which has introduced
first on 1 July 1998 in
the wake of the Financial System Inquiry
(Wallis Inquiry (1997). it works on the
various parts of the financial industry like
banks, credit unions, building societies,
general insurance and reinsurance
companies, life insurance, friendly
societies, and most members of
the superannuation industry. the aim of
the Australian Prudential Regulation
Authority (APRA) is introduced,
represents and enforcement of the
prudential standards and practices which
helps to formation of the stable, efficient
and competitive financial system along
with the financial promises.
Australian Securities & Investments Commission
The Australian Securities & Investments Commission
(ASIC) enforces and regulates company and financial
services laws to protect consumers, investors and
creditors. ASIC works with other financial and law
enforcement agencies in Australia and internationally,
and deals with compliance in the areas of financial
services, including: • Conduct and disclosure • The
competence, knowledge and skills of responsible
managers • The training and competence of
representatives and authorised representatives •
Compliance, managing conflicts of interest and risk
management • The adequacy of financial, technological
and human resources • Dispute resolution and
compensation arrangements.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 37 of 55
Australian Competition & Consumer Commission
The Australian Competition & Consumer Commission
(ACCC) promotes competition and fair trade in the
market place to benefit consumers, business and the
community. It also regulates national infrastructure
industries. The ACCC’s primary responsibility is to
ensure that individuals and businesses comply with the
Commonwealth's competition, fair-trading and
consumer protection laws.
Australian Taxation Office
The Australian Taxation Office (ATO) administers tax
legislation and is responsible for all self-managed
superannuation funds. The role of the Australian
Taxation Office (Tax Office) is to manage and shape
taxation, excise and superannuation systems that fund
services for Australians, giving effect to social and
economic policy. Through these systems the Tax Office
is the Australian Government's principal revenue
management agency.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 38 of 55
The Federal Court of Australia
The Federal Court of Australia is an Australian superior
court of record which has jurisdiction to deal with most
civil disputes governed by federal law (with the
exception of family law matters), along with some
summary (less serious) criminal matters. Cases are
heard at first instance by single Judges.
Supreme Court of Australia
The Supreme Court of Victoria is
the superior court for the State
of Victoria, Australia. It is a superior court
of common law and equity, with
unlimited jurisdiction within the state.
The Supreme Court has two divisions -
the Trial Division and the Court of Appeal.
The Trial Division sits with one judge, and
usually acts as a court of original
jurisdiction for serious criminal matters
such as murder, attempted murder,
corporate offences and certain conspiracy
charges, and civil matters
The Court of Appeal hears appeals from
the County Court and the Trial Division, as
well as appeals on points of law from the
Victorian Civil and Administrative Tribunal
against the order of the President or Vice-
President.
(b) Explain the purpose of the following Acts, Laws and Legislations:
Privacy Act
Privacy Act 1988 regulates information
privacy and how personal information is
handled. Personal information is
information that could or does identify an
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 39 of 55
individual. Name and address details •
Medical records • Bank account details •
Credit card details • Photos • Videos •
Workplace details • Opinions/survey
results. The Privacy Act covers the
following regarding personal information
Its accuracy • How securely it is kept • A
person’s general right to access
information about themselves. The Act
also covers more specific matters, such
as • The use of a person’s tax file number
• How credit worthiness information is
handled by credit reporting agencies and
credit providers.
Taxation Act
By virtue of s 55 of the Australian
Constitution, the Commonwealth
Parliament must ensure that the laws
imposing taxes deal only with the
imposition of taxes and deal with one
subject of tax only. As a result, there are
multiple statutes at the Commonwealth
level, each imposing and regulating one
subject of tax - for example, income tax,
excise duties, customs duties, goods and
services tax, fringe benefits tax, luxury car
tax, wine equalisation tax and other
indirect taxes.
Financial Transactions Reports Act
The Financial Transactions Reports Act
1988 (FTR Act) is regulated by The
Australian Transactions Reports and
Analysis Centre (AUSTRAC) and
designed within the framework of
Australian Tax Laws to help detect tax
evasion and other serious criminal activity,
including: • Offences against Australian
law • Money laundering from drug
trafficking and organised crime • Terrorism
financing. To achieve these aims, the FTR
Act places obligations on cash dealers
and solicitors to provide AUSTRAC with
certain reportds. Learning Cash dealers,
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 40 of 55
as defined in the FTR Act, include: •
Banks, building societies and credit
unions, referred to as 'financial institutions'
• Financial corporation’s • Insurance
companies and insurance intermediaries •
Securities dealers and futures brokers •
Cash carriers • Managers and trustees of
unit trusts • Firms that deal in travellers
cheques, money orders and the like •
Persons who collect, hold, exchange or
remit currency on behalf of other persons
• Currency and bullion dealers • Casinos
and gambling houses • Totalisator agency
boards
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 41 of 55
Competition and Consumer Act
the Trade Practices Act, the Competition
and Consumer Act 2010 helps to protect
the promotion of competition and fair
trading and provisions for the consumers
which also ensures the unfair financial
dealings, breaches of warranty.
Consumer Credit Act
The National Consumer Credit Protection
Act 2009 helps to legislate and control the
sales, management and processes
involving home loans, personal loans,
credit cards, consumer leases, pre
arranged overdrafts and line of credit
accounts.
Stamp Duties Act
Stamp Duties Act 1923 has been
legislated one type of tax system used in
legal documents, cheques, receipts,
military commissions, marriage licences
and land transaction.
National Greenhouse Reports Act
The National Greenhouse and Energy
Reporting (NGER) scheme, established
by the National Greenhouse and Energy
Reporting Act 2007 (NGER Act) which
has been legislated for providing report
and disseminating company information
greenhouse gas emissions, energy
production.
Code of Banking Practice
The Australian Bankers' Association
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 42 of 55
(ABA) Code of Banking Practice has
regulates the standards of good banking
practice while making the dealing with
small or individual business customers
and their guarantors.
(c) Explain the following terms.
Common Law
The common law has applicable in the
case law or precedent; by judges, courts,
and tribunals and it ensure to perform the
general appellate jurisdiction.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 43 of 55
Negligence
If any injury or a person is identified with a
negligence activity and someone affected
and faced any damages or loss due to the
duty of care then it will recognize as
negligence.
Contract Law
Contract is define as a mutual agreement
between two parties where it should
formalise a promise, which must be legally
binding. Under the contract the agreement
could made for buying a house pr car, for
repay the loan.
(d) List four (4) sources of information for obtaining up to date information in regards
to the regulations of the Australian Financial Services Industry. (Give an
example of each)
1. Financial Services Guide (FSG)
2. Statement of Advice (SoA)
3. Product Disclosure Statement (PDS)
4. ANZ Banking Group
(e) Explain why it is important to ensure that you maintain up to date knowledge in
regards to the regulations of the Australian Financial Services Industry.
It will help us to keep the track about the
new regulation and the importance of the
application.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 44 of 55
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 45 of 55
(f) List four (4) potential penalties/ramifications that may be applied should the Acts,
Legislations or Laws Australian Financial Services Industry be breached.
Include an Act, Legislation or Law that may carry each of these potential
penalties
1. Taxation Administration Act 1953 – the
Australian Tax Office (ATO) can
undertake actions against those who
deliberately or fraudulently evade the
payment of tax.
2. Privacy Act 1988- breach of the act
may provide economy penalty.
3. Financial Transactions Reports Act
1988 (FTR Act) - Australian Tax Laws
to help detect tax evasion and other
serious criminal activity.
4. Competition and Consumer Act 2010-
deals with Deceptive or false advertising
and Unfair financial dealings
(g) List and explain five (5) ways that you can ensure that regulatory requirements
are adhered to in the daily processes of a company within the Australian
Financial Services Industry.
1. protects from every hazards
2. protects from unfair trading and
dismissal
3. unfair legislations
4. fair business
5. consumer relation
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 46 of 55
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 47 of 55
(h) Explain the purpose of a workplace audit in maintaining workplace regulatory
compliance.
Workplace audits can be used to
determine whether staff members are
acting within company policy and within
regulatory requirements. Either internal
staff members such as HR or policy
managers or external companies that
specialize in audit processes can carry
them out.
(i) Explain the importance of meeting the stipulated timeframes for meeting statutory
requirements as set out by applicable governing bodies.
If the staff members of the workplace are
governed by statutory requirements order
to be able to perform their tasks, then
these requirements must update statutory
requirements and looks for the audit
requirements within the timeframe.
(j) Outline some of the possible ramifications should these statutory timelines not be
met.
The legislations has introduced for the
application in the Australian Financial
Industry to process for the better
opportunities. Therefore, it is necessary to
apply the appropriate legislations in every
matter.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 48 of 55
Part B: Practical Exercise/Evidence
Part B
1. Create an information pack to be given to the bookkeepers including:
List of applicable Regulatory Bodies and brief outline of their functions
Regulatory Bodies
The Australian Prudential Regulation Authority (APRA)
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the
Australian Financial Services Industry which has introduced first on 1 July 1998 in
the wake of the Financial System Inquiry (Wallis Inquiry (1997). it works on the various
parts of the financial industry like banks, credit unions, building societies, general
insurance and reinsurance companies, life insurance, friendly societies, and most
members of
the superannuation industry. the aim of the Australian Prudential Regulation Authority
(APRA) is introduced, represents and enforcement of the prudential standards and
practices which helps to formation of the stable, efficient and competitive financial
system along with the financial promises.
The Australian Securities and Investments Commission (ASIC)
The Australian Securities & Investments Commission (ASIC) enforces and regulates
company and financial services laws to protect consumers, investors and creditors.
ASIC works with other financial and law enforcement agencies in Australia and
internationally, and deals with compliance in the areas of financial services, including: •
Conduct and disclosure • The competence, knowledge and skills of responsible
managers • The training and competence of representatives and authorized
representatives • Compliance, managing conflicts of interest and risk management •
The adequacy of financial, technological and human resources • Dispute resolution and
compensation arrangements.
Australian Competition & Consumer Commission
The Australian Competition & Consumer Commission (ACCC) promotes competition
and fair trade in the market place to benefit consumers, business and the community. It
also regulates national infrastructure industries. The ACCC’s primary responsibility is to
ensure that individuals and businesses comply with the Commonwealth's competition,
fair-trading and consumer protection laws.
Australian Taxation Office
The Australian Taxation Office (ATO) administers tax legislation and is responsible for
all self-managed superannuation funds. The role of the Australian Taxation Office (Tax
Office) is to manage and shape taxation, excise and superannuation systems that fund
services for Australians, giving effect to social and economic policy. Through these
systems the Tax Office is the Australian Government's principal revenue management
agency.
Legislation
List of applicable Acts and Legislations including brief description, links to relevant web
sites and list of possible penalties if breached
Privacy Act
Privacy Act 1988 regulates information privacy and how personal information is
handled. Personal information is information that could or does identify an individual.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 49 of 55
Name and address details • Medical records • Bank account details • Credit card
details • Photos • Videos • Workplace details • Opinions/survey results. The Privacy Act
covers the following regarding personal information Its accuracy • How securely it is
kept • A person’s general right to access information about themselves. The Act also
covers more specific matters, such as • The use of a person’s tax file number • How
credit worthiness information is handled by credit reporting agencies and credit
providers.
Taxation Act
By virtue of s 55 of the Australian Constitution, the Commonwealth Parliament must
ensure that the laws imposing taxes deal only with the imposition of taxes and deal with
one subject of tax only. As a result, there are multiple statutes at the Commonwealth
level, each imposing and regulating one subject of tax - for example, income tax,
excise duties, customs duties, goods and services tax, fringe benefits tax, luxury car
tax, wine equalisation tax and other indirect taxes.
Financial Transactions Reports Act
The Financial Transactions Reports Act 1988 (FTR Act) is regulated by The Australian
Transactions Reports and Analysis Centre (AUSTRAC) and designed within the
framework of Australian Tax Laws to help detect tax evasion and other serious criminal
activity, including: • Offences against Australian law • Money laundering from drug
trafficking and organised crime • Terrorism financing. To achieve these aims, the FTR
Act places obligations on cash dealers and solicitors to provide AUSTRAC with certain
reportds. Learning Cash dealers, as defined in the FTR Act, include: • Banks, building
societies and credit unions, referred to as 'financial institutions' • Financial corporation’s
• Insurance companies and insurance intermediaries • Securities dealers and futures
brokers • Cash carriers • Managers and trustees of unit trusts • Firms that deal in
travellers cheques, money orders and the like • Persons who collect, hold, exchange or
remit currency on behalf of other persons • Currency and bullion dealers • Casinos and
gambling houses • Totalisator agency boards
Competition and Consumer Act
The Trade Practices Act, the Competition and Consumer Act 2010 helps to protect the
promotion of competition and fair trading and provisions for the consumers which also
ensures the unfair financial dealings, breaches of warranty.
The legislations are available at http://www.austlii.edu.au/au/legis/cth/
Brief description of common law implications to the bookkeeping industry
including structure of Australian Court system
Common Law
The common law has applicable in the case law or precedent; by judges, courts, and
tribunals and it ensure to perform the general appellate jurisdiction.
Negligence
If any injury or a person is identified with a negligence activity and someone affected
and faced any damages or loss due to the duty of care then it will recognize as
negligence.
Contract Law
Contract is define as a mutual agreement between two parties where it should
formalise a promise, which must be legally binding. Under the contract the agreement
could made for buying a house pr car, for repay the loan.
Code of Conduct
The purpose is ensuring the benefits of equivalent, which helps to protect from
the air, soil and pollution and noises. The Business also helps to set the
protocols, guidelines, standard and protocols.
The document can be accessed at
http://www.asic.gov.au/asic/ASIC.ASF/byHeadline/Codes-of-practice
Client Checklist
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 50 of 55
Section A:
Determining the Scope of the Engagement 1.
❏ Define the Scope of the Engagement: Rule
1.1, and Practice Standard 100-1
❏ Have I determined and documented the client’s understanding and intent in
working with me? ❏ Have I determined and documented the extent and breadth
of the services I am providing? (See the Personal Financial Planning Subject
Areas in the Terminology Section of the Standards) ❏ Have I determined and
documented the level of data gathering I plan to do?
Note: After analyzing and evaluating the client’s data in Step 2 of Sections B
and C, you may need to redefine the scope of your engagement. 2. ❏ Entering
into a Client Agreement: Rules 1.2 and 1.3 and Practice Standard 100-1 Based
on Answers above, is this client a financial planning client?
❏ Yes. Have I entered into a written agreement (see sample Form FPDA on
www.cfp.net) and documented that I have made the required written disclosures
(see sample Form FPD on www.cfp.net)? (See Rules 1.2, 1.3 and 2.2) Proceed
to Section B.
❏ No. Have I documented that I have orally-made disclosures? (See Rule 2.2)
Proceed to Section C. Section B: Financial Planning Engagement Checklist
Note: A CFP® professional shall act in utmost good faith, in a manner he or she
reasonably believes to be in the best interest of the client.
1. ❏ Gathering Client Data: Rule 3.3 and Practice Standards 200-1 and 200-2 ❏
Have I determined and documented the client’s goals and objectives?
❏ Have I documented my discussion with the client of any unrealistic goals and
objectives? ❏ Have I documented the client data I gathered and any gaps in
the data? 2. ❏ Analyzing and evaluating the client’s data: Rules 2.1 and 4.5
and Practice Standard 300-1 ❏ Have I documented my analysis and evaluation
of the client’s data? ❏ Have I documented the personal and economic
assumptions I used in developing Note: my recommendations? After analyzing
and evaluating the client’s data, you may need to return to Step 1 in Section A
and redefine the scope of your engagement. 3.
❏ Developing and presenting recommendations: Rules 2.1 and 4.5 and
Practice Standards 400-1, 400-2 and 400-3 ❏ Have I considered maintaining
the client’s current course of action?
❏ Have I considered and documented appropriate alternatives to the client’s
current course of action?
❏ Have I documented a cost/benefit analysis of the various products? ❏ Have
I documented how the alternatives are designed to meet the client’s goals and
objectives? ❏ Have I documented how my proposed recommendations are
designed to meet the client’s goals and objectives?
❏ Have I documented my discussion with the client regarding the client’s
current situation and the rationale for my recommendations? Note: You may
need to update your disclosures depending on the products and services you
are recommending.
4. ❏ Implementing the Recommendations: Rules 2.1 and 4.5 and Practice
Standards 500-1 and 500-2
❏ Have I documented the client’s acceptance or rejection of my
recommendations?
❏ Have I determined and documented my responsibility regarding
implementation?
❏ Have I disclosed and documented conflicts of interest, sources of
compensation and material relationships that have not been previously
disclosed?
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 51 of 55
❏ Have I selected appropriate products designed to meet the client’s goals and
objectives?
5. ❏ Monitoring: Practice Standard 600-1
❏ Have I discussed and documented my role in monitoring the performance of
my recommendations? Section C: Non-Financial Planning Engagement
Checklist Note: This section represents the minimum standards required of
CFP® professionals in all financial engagements. As a best practice, CFP®
professionals are encouraged to use the Financial Planning Engagement
checklist in Section B in all client engagements.
1. ❏ Gathering Client Data: Rule 3.3
❏ Have I obtained all the information necessary to fulfill my obligation to
client? If not, have I informed the client of any and all material deficiencies?
Note: Depending on the comprehensiveness of your data gathering, you
may need to return to Section A to reevaluate whether you are providing
financial planning services or material elements of financial planning
services.
2. ❏ Developing and presenting recommendations: Rules 1.4, 2.2 and 4.5
❏ Do my recommendations place the interests of my client ahead of my
own?
❏ Have I disclosed conflicts of interest, sources of compensation and
information that may be material to the client regarding our relationship that
have not been previously disclosed?
❏ Have I only made recommendations that are suitable for the client?
Note: Depending on the depth and breadth of your recommendations, you
may need to return to Section A to reevaluate whether you are providing
financial planning services or material elements of financial planning
services.
3. ❏ Implementing the Recommendations: Rules 1.4, 2.2 and 4.5
❏ Does the recommendation that I am implementing on behalf of the client
place the interests of my client ahead of my own?
❏ Have I disclosed conflicts of interest, sources of compensation and
information that may be material to the client regarding our relationship that
have not been previously disclosed?
❏ Have I implemented only recommendations that are suitable for the
client?
2. Create a compliance pack for each bookkeeper including.
Statutory requirements
It is the duty of all bookkeepers to abide by the code of conduct
http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Codes-of-practicee
The statutory requirements for bookkeepers are outlined in the website below
http://www.bookkeepershub.com.au/wp-content/uploads/2014/10/Bookkeepers-
Toolkit-Policy-Procedures-Legislative-stuff.pdf
Checklist of Bookkeeper
Date
Site http://www.asic.gov.au/asic/ASIC.ASF/byHeadline/Codes-
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 52 of 55
of-practice
Updates Nil
Statutory
Timeframes
 The legislations are The Australian Securities and
Investment Commission (ASIC)
 Australian Prudential Regulatory Authority (APRA)
 Australian Competition and Consumer
Commission (ACCC)
 Anti-Money Laundering and Counter-Terrorism
Financing Act 2008.
Processes Processed under the Australian Government
Outcomes To ensure bookkeepers compliance
Next Follow-up
Date
After the updated version, the date will announce.
Time Frame
The review of compliance by the bookkeepers would be done on a monthly
basis and the achievements are to be evaluated in a period of six months.
3 Write a brief report to your manager covering the following areas:
For the purpose of enhancing the situation of the company the various steps
which have been take are creation of documents for making the compliance process
clear and transparent. The document which have been created include a compliance
pack, code of conduct, compliance check list and legislative requirements. The
bookkeepers would be provided training in relation to comply with all statutory
requirements. A review committee would be established to ensure that the functions
are discharged appropriately. The cost for creating a committee and monthly training
program would be around $8000 a month.
Once you have completed these tasks, save your documents and include them with
your Assessment Tool when submitting your work to your Trainer/Assessor.
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 53 of 55
Part C: Observation Checklist:
To be completed at your workplace or a simulated environment. You are required to
demonstrate your competence in the following elements.
FNSACC403B
Element Did the Participant demonstrate skill and
knowledge in…
Observed
Y/N
Give details if
Not Yet
Competent
Evaluate
legal context
for financial
services work
 The functions of the courts and other
regulatory bodies relevant to the
financial services industry are identified
 Implications of relevant legislation are
identified and applied in operational
activities
 Implications of common law, including
negligence and contract, employment law
and business structures, are identified
and applied in making operational
decisions.
Identify
compliance
requirements
 Compliance requirements are interpreted
accurately and applied within prescribed
time limits
 Requirements are reviewed regularly in a
comprehensive manner
 Legislative and regulatory sources of
information are constantly reviewed to
remain informed of changes and
amendments to statutes and finance
industry requirements
Develop
procedures to
ensure
compliance
 Procedures are developed in
consultation with others to address all the
requirements to be met for compliance
 Compliance requirements are
monitored to ensure that they are adhered
to by the organisation
 Timetables to meet compliance
requirements are established to align with
statutory deadlines
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 54 of 55
Part D: Third Party Verification
The Participant’s Manager or Team Leader must sign and date each verification
statement below as evidence of the Participant’s ability to perform the specified tasks.
Verification Task Unit Elemen
t
Perf.
Criteria
I,.......................................................... verify that the
Participant can evaluate legal context for financial
services work and identify compliance requirements of
the legal system relevant to their role within an
organisation.
Signed:................................................
Date:....................................................
FNSACC403
B
1
2
ALL
ALL
Verification Task Unit Elemen
t
Perf.
Criteria
I,.......................................................... verify that the
Participant creates procedures and use them to ensure
compliance in the role as per an organisation’s
requirements.
Signed:................................................
Date:....................................................
FNSACC403
B
3 ALL
Part E: Outcome:
Assessment Matrix
Element of Competency Comp /
NYC
Give details if Not Yet
Competent
1. Evaluate legal context for financial
services work
2. Identify compliance requirements
3. Develop procedures to ensure
compliance
Participant is  Competent  Not Yet Competent
Participant Details Name: _________________________________
Signature: _________________________________
Date: _________________________________
W/Assessor Details: Name: _________________________________
Signature: _________________________________
Date: ___________________________________
Further action / strategies if Participant is deemed Not Yet Competent:
_____________________________________________________________________________
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning

Assessment Tool Page 55 of 55
_______________________________________________________________________
tmp5z_8__v1.doc V4.12 © Copyright 2012 OfficeLink Learning