FNS40815 Certificate IV Finance: Compliance, Service & Mortgage

This assignment solution for Certificate IV in Finance and Mortgage Broking (FNS40815) addresses key areas such as identifying and interpreting compliance requirements, delivering and monitoring customer service, contributing to OHS hazard identification and risk assessment, managing personal work priorities, developing client relationships, promoting effective credit use, and preparing loan applications. The solution emphasizes understanding and applying the NCCP Act, maintaining ethical conduct, and staying updated with regulatory changes from bodies like ASIC and APRA. It also highlights the importance of empathy, active listening, and over-servicing in building strong client relationships and ensuring outstanding service delivery within a mortgage broking organization. The document underscores the need for continuous training and monitoring to adhere to industry standards and compliance requirements.

Certificate IV in Finance and Mortgage Broking
Assessment Task
FNS40815
Your details:
Name:
Address:
Phone:
Company name
Email:
Your assessment task
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Submit your assessment to our Education
Plagiarism Statement
All assessments must be your own work and not a result of plagiarism or collaboration
with other students or workmates.
Assessment
The pass mark is 70% for each element. If you do not achieve this, you will receive
feedback via your email address and be asked to resubmit your assessment for a second
marking. Assignments will not be returned to you as they need to be retained for by us for
verification and audit purposes.
Task Assessments Total
Mark
Pass
Mark
Actual
Mark
1 Identify and Interpret Compliance Requirements 27 19
2 Deliver and Monitor a Service to Customers 39 27
3 Contribute to OHS Hazard Identification & Risk Assessment 41 29
4 Manage Personal Work Priorities and Professional Development 24 17
5 Develop and Nurture Relationships with Clients, Other
Professionals and Third Party Referrers
17 12
6 Promoting the Effective Use of Credit 15 10
7 Prepare a Loan Application on Behalf of Mortgage Broking
Clients
64 45
8 Steps Taken by the Credit Provider 23 16
Total 250 175
Assessor’s Initials: ____________________
Assessment Date: ____________________

Introduction
Objective The objective of this Assessment Task is to demonstrate that you have the
skills and knowledge required to conduct a client relationship and comply with
statutory, industry and organization compliance requirements.
Elements to
be assessed
To achieve this objective, you will need to demonstrate your ability to:
The assessment tasks in this assessment will allow you to demonstrate your
knowledge and skills in relation to these elements.
Assessment
process
Start by:
1. Reading the Assessment Task.
2. Type your answers to the assessment tasks into this template document
(hand-written answers are not accepted)
3. Submit your completed document by uploading it on the ‘Ready for
Assessment’ area of www.CPDplus.com
Don’t forget to keep a copy and retain it for 12 months.
Need help? If you have any questions or would like to request a digital copy of this
assessment task, please email the Mentor Support Team at
Statement of
Completion
Upon successful completion of this assessment you will be awarded the
Statement of Completion for FNS40815 Certificate IV in Finance and Mortgage
Broking.

Task 1: Identify and Interpret Compliance Requirements
1. Identify
compliance
requirement
s
Mortgage brokers face important compliance requirements, the foremost
among them being the reasonable lending provisions of the NCCP Act. The
penalties for non-compliance include loss of license (for businesses) and
removal from the industry (for individuals). If fraud is involved there may also
be the criminal penalties of fines and / or imprisonment.
Compliance requirements are not static. It is therefore important to stay up to
date with them.
Mortgage brokers also need to keep up-to-date with the actions of the
regulatory authorities such as APRA and the Reserve Bank. Their actions may
not amount to direct regulation, but through their effects on interest rates and
bank lending these authorities can have a very direct impact on the business
mortgage brokers are able to do.
(a) A key requirement of the responsible lending obligations is the ‘unsuitability test.’ What must a
mortgage broker do to comply with the unsuitability test?
No Mark
1. Make reasonable enquiries about the applicant's objectives and requirements /1
2. Make reasonable inquiries about the applicant’s financial situation /1
3. Verify the applicant's financial situation /1
(b) List the sorts of items a client’s requirements and objectives could include (as indicated by
ASIC).
Mark
1. The amount of credit needed, or the maximum amount sought.
2. The timeframe for which it is required.
3. The purpose and benefit sought; and
4. Whether the applicant seeks particular product features or flexibility and
understands the costs of these features and any additional risks.
/2
(c) Leading credit providers and other financial organisations have code of ethics, sometime
called codes of conduct. Select one of them and summarise it by itemising its main principles.
Mark
Confidentiality: much of the information which practitioners in the financial services
industry have access to is highly confidential. This information must not be disclosed
except in the way that was intended. This is not only a moral obligation; it is also a
legal requirement. Broker should not:
 discuss the finances of a client outside the workplace.
 provide details of a customer’s investment to a person not authorised to receive it;
and
 allow sensitive correspondence to be viewed by people without the authority to
/4

access it
Sub-total /9
Continued
(d) In point form, list the key information that the NCCP Act requires to be contained in a Credit
Guide.
Mark
the licensee’s name, contact details and Australian credit licence number;
details on any fees and charges payable by the consumer
details of any commissions likely to be received from the lender;
the names of the licensee’s six main lenders;
details regarding complaint handling, including contact details of internal and external dispute
resolution processes; and
information about the licensee’s obligation to provide a written copy of an unsuitability assessment
upon request.
/3
(e) It is important to keep up to date with compliance requirements so that the required changes
can be made to organization procedures and product offerings. Suggest three sources that
you can use.
Mark
The professional associations code of practice, larger mortgage broking organisations
usually have compliance officers who assist practitioners to meet compliance standards.
and up-to-date procedures manual.
/3
(f) Explain the requirement for Australian Credit Licensees to keep a training register.
Mark
ASIC requires credit licensees to conduct formal training programs for their brokers. They
must also have a written policy regarding training as well as maintain a training register
detailing the training undertaken by each representative.
/2
(g) Explain APRA’s current attitude towards bank lending for investment properties.
Mark
The focus of APRA’s changes is for lenders to limit interest to 30% of all new residential
lending.
/2

Sub-total / 10
Continued
Task 1: Identify and Interpret Compliance Requirements Continued
1.2
Interpret,
analyse
and
prioritise
identified
complian
ce
requirem
ents
Some of the compliance requirements are difficult to meet. Unfortunately, also
there have been some ‘rogue’ mortgage brokers who have failed to comply – to the
disadvantage of their clients.
The finance planning industry has been plagued by non-compliance in the largest
planning groups, with the image of the industry being substantially tarnished as a
result. It may not suffer greatly because of the absence of an alternative source of
financial advice.
This is not so with mortgage brokers. They are just establishing their reputation and
consumers always have alternative of going to the lenders directly.
(a) Select three tasks you perform on a regular basis that are subject to compliance
requirements.
No Mark
1. To study and perform assigned schoolwork and attend classes /1
2.
To file tax returns and pay the relevant taxes
/1
3.
To wear a mask especially in indoor public places during COVID
/1
(b) Identify the compliance requirements that are relevant to the three tasks selected, indicating
the name of the relevant legislation, regulation or code of conduct.
No
1. This task is done to comply with educational requirements in order to pass the course
in school. The grades that we need to obtain serve as measurement of how we have
complied with school requirements.
/1
2. AU PR & citizen need to file taxes before the deadline and pay any tax dues timely in
compliance with federal or national tax regulations in Australia.
/1
3. Many businesses such as restaurants, shopping centers etc require customers to
wear masks during the COVID outbreaks. It is necessary to comply with these rules
to avoid spreading the virus further as per. ASIC / 1 2 . Australian consumer law / 1
3 . National consumer credit act 2009 / 1
/1

(c) How does your organisation monitor your compliance?
Mark
By putting all plans and policies at one place and take proper follow ups. Rewrite your code
of ethics and provide better training to employees. Regular tracking the progress of these
programs to figure out whether they keep updated with the best practices in industry.
/2
Sub-total /8
Total /27
Task 2: Deliver and Monitor a Service to Customers
2.
Identify
customer
needs
The relationship with a client is generally described as beginning with the
establishment of empathy. In other words, it is first necessary for a mortgage
broker to establish that he / she is truly interested in the client and the client’s
needs. It is only after that that the mortgage broker has established the right to
interview a client.
(a) Use the internet or any other source to find a definition of empathy.
Mark
The meaning of the word Empathy is the ability to share someone else's feelings or
experiences by imagining what it would be like to be in that person's situation
(https://dictionary.cambridge.org/dictionary/english/empathy)
/1
(b) List three open-ended questions that assist in developing empathy with a client? How do such
questions indicate empathy?
No. Mark
1) How are you feeling about our service? Are you comfortable with it?
2) What are the problems that you are experiencing at the moment?
3) Can I help with anything else with your current problem?
/2
Each question aims to make the client comfortable and maintain an attitude of
empathy and courtesy.
/1
(c) List and explain the steps involved in an ‘active listening approach’.
Mark
ASK QUESTIONS - Find out about needs and wants of the client /1

Go BACK - Restate what the client has said about his or her needs to be sure the relevant
details have been heard and understood and to encourage the speaker to proceed further.
The client’s thoughts and feelings can then be used as a lead-in to further questions.
/1
SUMMARISE - to make sure both sides agree on the facts. /1
(d) How is client service commonly monitored in your organisation? What are the two possible
outcomes?
No. Mark
1. The first element is the notion of serving clients and their needs, which is seen
as the basic characteristic of a professional relationship. Another writer on
professionalism describes the same quality as a “deeply caring attitude”.2
It is said of David Maister that one of his favourite questions is to ask
professionals “Why do you do what you do?” The answer he always listens for
is “I like helping people.” If it is missing, he believes he is dealing with a
professional who is in trouble.
/1
2. The second element in the definition relates to the way the service is performed. It
is performed with “an unqualified dedication to excellence”. According to Maister,
this shows itself in enthusiasm in client service, which in turn lead to having “fun”.4
For him, a successful professional relationship is an enjoyable one.
/2
Sub-total /10
Continued
Task 2: Deliver and Monitor a Service to Customers Continued
2.1 Deliver
a service to
customers
In a survey on the reasons for referrals conducted by David Maister, only 10%
were due to the quality of technical work. The remaining 90% of referrals were due
to the quality of service.
This indicates that the key to maintaining client relationships and gaining referrals
is the provision of outstanding service. This has been described by Maister as
‘over-servicing’.
(a) Describe three ways in which a mortgage broking organisation can attempt to ‘overservice’
clients?
No. Mark
1. High number of emails/calls about marketing or advertisement to attract clients /1
2. Use of the social media to get through more potential clients which will provide opportunities. /1
3. Crate a personalised campaigns for mortgage loan that will be easily available to the clients. /1
(b) How would you keep a client informed about the progress of an application as it passed through a
creditor provider’s hands? What approximate timing might be involved?
No. Mark

1. By passing the configuration emails to the clients which should be an auto – generated email. Also
the tracing details of the application should be forwarded to the customers. As it will become
easier for them to track and this will give them a surety that their application is in the process.
/2
2. For the process and acceptance of the application, the timing taken will approximately be 1 months
for the completion to pass through the hands of the creditor.
/2
(c) Describe how you might attempt to resolve conflicts with clients.
Mark
By speaking with the mentor and discuss the issue that the client is making and provide a solution.
It can be done through the email communication or through the phone call, as meeting in the
times of COVID will not enable to follow the compliance structure of the country. The mortgage
broker should also apologise to the client that the client has faced and also ask about any difficulty
that he is facing and which could be solved by the organisation.
/2
(d) How do you can prepare clients for the hiccups that can happen while their credit application is being
processed
Mark
When the application process starts the client should be informed that their credit application can be traced
by them through the online portfolio that has been created on the organisation’s website. It will give them
an authentic information regarding the procedure of the application that has been followed.
/2
Sub-total /11
Continued
(e) The chapter on Operating a Mortgage Broking Business contains an example suggesting that a
mortgage broker acting in the best interests of clients should act as a Protector rather than an Expert.
What are the implications for this in regard to (i) advice given to clients and (ii) recommending the
most suitable loan products?.
No. Mark
1. The advice that can be given by the mortgage broker to its clients can be to work on the structuring
of the debt which could help the latter to complete the needs on the preferred time period. Also to
use the efficiency, education and empathy should be used by the client for the better
understanding of the system and the appropriateness of the bonds.
/2
2. The loan product which will be more beneficial will be home loan as it gives the credit on a low
interest rates.
/2

(f) How could you prepare yourself to deal with client concerns?
Mark
To be ready with the question that could be asked by the clients and which might create a confusion
whether to take loan or not. It can be done by using the correct ad the appropriate theories to convince the
client.
/2
(g) Give examples of the following legal breaches: breach of the duty of care, false and
misleading conduct, unconscionable conduct & conflict of interest without disclosure.
No. Mark
1. Leaking of confidential documents of the clients due to the irresponsible behaviour. /1
2. Advertisement in the name of company /1
3. No proper explanation in the contract which could give a learning disability to the client /1
4. Providing undue advantage to relatives while conducting business transactions /1
(h) Once a desirable market segment has been identified, a mortgage broking business can put
its mind o developing suitable marketing strategies. List examples of different strategies that
might be used.
Mark
1. Video email campaigns using the complete information in a concise way about the loans.
2. Can host virtual events without any costs
3. Give advertisements on the newspapers, social median platforms.
/2
Sub-total /12
Continued
(i) What steps can be taken to keep up to date with product changes and ensure that this
knowledge is properly disseminated?
Mark
A person from the management should be allocated to use this department, in case of the modifications in
the policies of the loans. He should pass the appropriate information to the senior manager with the
complte change that has been done by the government authority and should be applied in the organisation
structure rapidly.
/2

(j) What are the procedures for dealing with client complaints in your organisation?
Mark
A customer care number should be provided to the client for the communication of the complaints and should
be taken corrective measure for resolving the complaint.
/2
(k) What normal protocols should for protecting the confidentiality of client files?
Mark
All the information must be saved in the firewall with the passwords and the confidentiality documents must be
signed by every employee that the office information must not be leaked out. /2
Sub-total /6
Total /39

Task 3: Contribute to OHS Hazard Identification & Risk Assessment
3. Contribute
to workplace
hazard
identificatio
n
Occupational health and safety hazards are often considered only in terms of
physical injury, perhaps the result of working with heavy machinery, working in an
excessively noisy environment, or slipping or falling. Just as relevant, however, is
work-related stress. This describes the physical, mental and emotional
reactions of workers who perceive that their work demands exceed their
abilities and/or their resources (such as time, help/support) to do the work.
For the questions that follow, please read ‘Overview of Work-related Stress’
from the NSW Government. It may be found at:
Other ‘Tip Sheets’ from the same website may also be useful.
(a) How would you define workplace stress?
Mark
It is an emotional and physical response when there is a conflict among-st employees of
an organization with respect to job assignment and the amount of control an employee
applies to fulfill such job assignment.
/4
(b) Suggest at least two ways in which work-related stress may affect client relationships.
Mark
 Working for long hours affect the mental ability of the persons working in office.
 Heavy workload to meet deadlines on time will generate stress that affects the
client relationship.
/2
(c) Suggest at least four approaches you can take to reduce workplace stress? (Hint: you may
find suggested ways if you key ‘handling workplace stress’ into a search engine).
Mark
1. Encouraging employees to take regular breaks in between the work.
2. Provide flexible work schedule as per needs of an employee.
3. Providing incentives on regular interval when workload increases.
4. Regular meditation programs helps in reducing stress whether in professional or
personal life. /4
Sub-total /10
Continued

Task 3: Contribute to OHS Hazard Identification & Risk
Assessment Continued
3.1 Gather
information
about
workplace
hazards
In assisting in the control of work-related hazards, you will need to be access
suitable information.
Please read ‘Glossary of Job Demands and Job Resources’ from the QUT/ANU
People at Work project. It may be found here:
http://web.archive.org/web/20150227212940/http://
www.peopleatworkproject.com.au/LiteratureRetrieve.aspx?ID=174670
(a) Explain the distinction between ‘job demands’ and ‘job resources’ risk factors.
Mark
The job demands risk factors could be high volume of work, complex working
assignments, working environment is not comfortable, tasks are emotionally draining
whereas job resources factors could be support from others, regular performance
feedback, job controlling which reduces job demands etc.
/4
(b) Identify two ‘job demands’ risk factors that are relevant to your workplace and describe what
detrimental effect they might have.
No. Mark
1. Regular conflict between the management and 2.Complex assignment and
increased working hours.
/ 2
2. Conflict between the management creates, environment of work place negative and
staff start finding difficult to work in such an environment and complex files and high
working hours affect the mental health of employees and they start leaving the
organization in search of alternate job opportunity.
/ 2
Sub-total /8
Continued
Task 3: Contribute to OHS Hazard Identification & Risk
Assessment Continued