IIT - Finance Broking in Practice (FBP) - Chapter 4 Assessment

This document presents a student's solutions to a Finance Broking in Practice (FBP) Chapter 4 assessment. The assessment covers various aspects of finance broking, including responding to client concerns about product costs, software applications for calculating financial positions, compliance with regulations, implementing triple bottom line principles, understanding agency laws, and prospecting techniques. The student provides email responses, outlines audit and monitoring programs, discusses regulatory compliance mechanisms, calculates costs associated with triple bottom line implementation, and details prospecting strategies for both professional and personal contacts. The solutions demonstrate an understanding of the practical application of finance broking principles and regulatory requirements.

Finance Broking
in
Practice
(FBP)
Student
Assessment Booklet
Name:
Date:
Manual Version Number:

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FBP: Chapter 4
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Student Declaration
I understand that by completing this form I am bound by the following
declaration.
To the best of my knowledge and belief, no part of this assignment for the above
unit has been copied from any other student’s work or from any other source
except where due acknowledgment is made in the text, or has been written for
me by another person.
Name: SARA T MANU Date:16 March 2021

FBP: Chapter 4
Short Answer Question 1
You had recommended a variable interest rate product with an offset
account to your client and they emailed you and said they did not want to
take up the product as it was too expensive. A cheaper product exists but
you believe it doesn’t meet their needs as it does not have the features
they need. Write an email in response (referred to a sales response)
designed to overcome their reluctance. Ensure you sign off with your
name and provide your mobile phone so they can contact you.
Email address: [e-mail]
Dear Customer,
Thank you for your emailed that I have received
in regards of the product that we have
recommended. You did not want the variable
interest rate together with the offset account as
you mentioned it is expensive for you. I
understand you wanted a cheaper option
unfortunately the requirements for the products
will not suit your need of having an offset
account. The cheapest option doesn’t have the
feature that you need but the recommended
product has more benefit than the cheaper
product in the long run. For instance, if you
deposit both of your wages in the offset account
it will help decrease the interest rate and you
will not have to pay for the full term of the loan
but pay off your loan quicker which is something
that the cheaper product can not achieved. Also
the recommended product will cost you $500
more upfront but in the long run you be able to
save a lot of money by helping decrease the
interest on your home loan comparing to the

FBP: Chapter 4
cheaper product which this option is not
available.
Please do not hesitate to contact me on
041-1139486 for more details. I would love to
help you in regards of your request.
Best regards
Email:

FBP: Chapter 4
Short Answer Question 2
(a) Which software applications would you use to calculate a client’s
financial position?
Servicing Calculator
(b) All brokers are required to pass the So Sweet credit guide to their
clients. Devise an item on an audit program to prove she does it.
A signed checklist provided by the broker to the
client.
(c) So Sweet requires all new brokers to email a summary of their efforts
each week to their mentor. Devise an internal monitoring program to
ensure they do it.
Continuous professional development
requirements
(d) Keeping up with new regulations is vital. Devise a mechanism to
ensure the currency of regulatory literature is distributed in a timely
fashion in accordance with organisational policy.
The compliance with new regulations is very
important and it is necessary for companies to
follow all the regulations. This is because of the
reason that the laws guide the company that
how they have to work and what steps they
need to follow. Hence, the compliance with
regulation will also assist company in facing the
competition in better and effective manner.
Also in case the currency of regulatory literature
is distributed on timely manner and in

FBP: Chapter 4
accordance to the organisational policy then
this will improve the working efficiency of the
company. This is necessary because all the new
regulations have been implemented within the
organisational policy and as a result of this the
performance of the company will be enhanced.
(e) How would you ensure operational procedure is updated to reflect
changes to regulation and legislation, including the identification of
implications for product and services?
Internal monitoring, auditing programs for staff
and authority holders can help to keep
organisational framework in line with wider
policy requirements. Such programs may
include:
 Audits of disclosure documentations
 Audits of financial services reform (FSR)
documents
 Loan documents audits
 Monthly journal audits
 Qualification check

FBP: Chapter 4
(f) Research and calculate the cost of implementing triple bottom
line principles in an office with no eco policies.
Implementing triple bottom line principle in the
office takes degree of skill and planning to
implement, It will cost company time and
money to implement but at the end it is
important to monitor sustainability of the
business through triple bottom line. You need to
source documents from valid and most current
reports including legislation, regulations and
code of practice that apply to the industry and
its organisations. Examples include: Trade of
practices Act, section 52-Green marketing,
Department of climate change – national
greenhouse reporting act. Etc
So, to apply Triple Bottom Line, you have to look
at the 3 P’s (People, Planet and Profit). How will
one impact another if the principle is not
properly executed.
The implementation of triple bottom line is very
important for the company because it focuses
on proper and balanced growth of the business.
The reason behind this fact is that when the
company emphasises on people, planet and
profit then it provides better returns. Even
though the cost levied is high but the expected
returns are also high. For example, when
company implement strategies relating to
Corporate Social Responsibility then they have
to incur high cost but in against it also provides
a good return to the company. On the other

FBP: Chapter 4
hand, in case company plans to increase the
profit then also it will incur cost but the result
will be increase in profit.
The cost of includes
People- $30
Planet- $ 35
Profit- $ 45
Total cost- $110
Hence for the recycling and waste management
company can undertake use of plastic recycling.
Within this the company can reuse the plastic
bags and other related plastic product so that it
will not harm the environment. Approximate call
to relating to this strategy will involve
proximately $109
(g) Via email ask if any staff would like to undertake the triple bottom
line implementation process as a business opportunity.
To: [e-mail]
Dear staff
A new opportunity to undertake the Triple
Bottom Line Implementation Process has risen
and this is available for anyone who want to
take up this role as a busines opportunity.
It is very important to understand the benefit of
this system. Pursuing the triple bottom line

FBP: Chapter 4
initiative increases the transparency and
accountability of an organisation’s operations
this is the key benefit to organisation as it can
attract new consumers and improve
productivity levels.
So as a company with a large turnover in terms
of profit we need to ensure that other part of
the industry is not affected by this result.
Talking about consideration that the 3 P’s must
al benefit out of the process so it’s important to
take it into account all aspects to be rewarded
and that is why we need someone to manage
this part of our service.
Please contact me if you are interesting on the
role.
Best Regards
Sara Manu

FBP: Chapter 4
Short Answer Question 3
Under the laws of agency, when can a finance broker act as a limited
agent of a credit provider?
If the finance broker work directly with the
credit provider

FBP: Chapter 4
Short Answer Question 4
(a) Prospectingis a continuous process of gathering the names of
potential buyers who are likely to be interested in purchasing the
broker's product. Select one business or professional contact
e.g. brokers, business associates and associations and one person
from your personal network e.g. friends and family and detail how
you will contact them by using a technique from the list below or
other technique:
 advertisements
 databases
 direct mail
 internal company referral systems
 networking groups and events
 referrals
 telemarketing.
Referrals
Professional Contact :Broker
Personal Contact: family friend
How to contact them: Keeping in touch with
them by calling them and have conversation
with them, encourage them to recommend a
brand to families and friends and their
colleagues. Talk to them using the sharing tools
and referral rewards.
(b) You have contacted a person and have spoken to them using one of
the techniques above. How would you develop and cultivate the
relationship, in order to market to them and benefit the organisation,
in an agreed upon timeframe?
Follow up by keeping updating them with the
most current and relevant information about the
product and the market. Also let them know