FNSASIC302: Develop, Present and Negotiate Client Solutions Assignment

This document provides a comprehensive solution to the FNSASIC302 assignment, focusing on the development, presentation, and negotiation of client solutions in the financial services industry. It delves into key elements of RG245, including fee disclosure and commission disclosure statements, and explores the legal basis and purpose of statements of advice. The assignment also examines legal and ethical issues related to trailing commissions, regulatory aspects of risk disclosure, and complaint resolution procedures. Furthermore, it addresses fee disclosure statements, the requirement for insurance brokers to issue statements of advice, regulatory codes for Electronic Funds Transfer (EFT), and the legal basis of non-cash payments, providing a thorough understanding of the subject matter.

FNSASIC302 Develop,
present and negotiate client
solutions

Table of Contents
Activity 1.....................................................................................................................................2
Activity 2.....................................................................................................................................2
Activity 3.....................................................................................................................................2
Activity 4.....................................................................................................................................3
Activity 5.....................................................................................................................................3
Activity 6.....................................................................................................................................4
Activity 7.....................................................................................................................................4
Activity 8.....................................................................................................................................4
Activity 9.....................................................................................................................................5
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Activity 1
Identify and explain key elements of RG245 that AFS licences and representatives must consider
when entering into ongoing fee arrangements.
RG245 and AFS licensee provides fee disclosure statement and also the commission disclosure statement to the. It
also provides detailed information about the direct payment service help of cheque to their clients. This also
provides detail obligations and disclosure of remuneration and applications to the client. This also assist client on the
recommendations of commission and various products as well.
Activity 2
Explain the legal basis and purpose of providing a statement of advice to a client.
The main motive of statement of advice is to communicate to all the relevant and necessary information to their
clients and advice them to use appropriate information and decision making. Statement of advice provides basic and
necessary details about the information to the clients so that we do not have to face any issues and they can make
their financial decision easily.
Activity 3
Explain the legal and ethical issues surrounding the payment of trailing commissions to finance
and mortgage brokers and advisers.
Legal and ethical issue surrounded and provide all the information related to the payment of training and various
Commission overall finance and mortgage brokers and also advise their clients to use appropriate information. It
states about the annual Service Commission so that can client do not have to pay a lot of money. One of the biggest
issue which is arrived in trail commission is that financial Advisors for charging Apple of money from the clients for
giving advice to the holding and position of client.
Activity 4
Identify and explain the regulatory basis for risk disclosure in the Australian financial planning
industry
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It provides legal licence for trading in various securities in the Australian Financial Service licence so that the
chances of counterparty risk and Default can be reduced. Apart from this it also helps the client to select
appropriate securities so that they may earn good return and the chances of counterparty risk and market risk
also produces. Code of ethics is important for every business because it clarifies all the rules and behaviours
of the organisation repair regulations and policies which has to be followed.
Activity 5
Explain what a client should do if they have a complaint about a statement of advice. (Identify
complaints resolution procedures (internal and external)
Sometimes client also put Complaints against statement of advice because it do not fulfill their needs and when it
use such securities which is more profitable for them and do not there is specified need as well. It also loses the
valuable money of client and it impact on their financial position as well. Complaint handling process with lifting
the Complaints after that understand all the Complaints then the record has to be prepared for the Complaints and
ensure about the facts and discuss on the fixing of problems and last stages follow up the complaint so that proper
solution can be find out.
Activity 6
RG245 requires Financial Service Providers to issue Fee Disclosure Statements (FDS) to clients
who enter into ongoing fee arrangements. How must a FSP provide FDSs to clients?
Those clients who are providing fee it is there right to get fee disclosure statement within the 30 days. So that they
may know that they have invested in the right place and their arrangement has taken place as well. Fee disclosure
statement will provide all the necessary details to the client which they are looking for. As it is a formal document
which every client needs has paid fee.Fds can be given to clients as per the needs of the clients client has to make
sure that they do not pay high fee which is less then their needs and requirements.
Activity 7
Are insurance brokers required to issue a statement of advice to their clients? Explain your
answer.
Insurance broker also required to issue and statement of advice because on the type of advice broker can provide
different services to the client. With the help of statement of advice claim on the policy can be done and broker may
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assist the client how to get the claim as well.
Activity 8
What regulatory code must a business involved in EFT consider?
EFT is used for E payment code. Epayments code applies to all the consumer electronic payment transactions and it
is very necessary for the client whenever they make any online payment or with the help of mobile banking and
internet. On the situation online payment EFT is necessary for the client.
Activity 9
Explain the legal basis of the term ‘non-cash payments”.
Non cash payment is also regulated and it includes known physical delivery of currency. Cash payment also has to
face some legal rules and Standards so that the chances of default and cheating reduce and client can easily enjoy
known cash payment method.
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