Complex Client Needs: Presenting Broking Options - Business Dev

This report provides a detailed analysis of presenting broking options to clients with complex needs, specifically addressing the scenario of a client with a hearing disability. It emphasizes the importance of clear and accessible communication, including written disclosures, visual aids, and avoiding jargon. The report covers various aspects of broking, such as commercial loans, chattel leases, and native title rights, while also addressing risk factors and return expectations. It highlights the ethical considerations, including disclosing commercial relationships and maintaining client confidentiality, and suggests methods for obtaining client feedback to ensure understanding and improve negotiation. The report also outlines the necessary documentation to be provided to the client, ensuring transparency and informed decision-making. This document is available on Desklib, a platform offering a range of study tools and resources for students.

PRESENT BROKING OPTIONS TO CLIENT
WITH COMPLEX NEEDS
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Contents
Written activity................................................................................................................................3
Third Party Report...........................................................................................................................5
REFERENCES..............................................................................................................................10
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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.
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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
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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
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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.
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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.
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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.
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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
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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:
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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.
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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
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