FNSINC401: Professional Practice in the Financial Industry

This document provides solutions to a series of activities related to the FNSINC401 unit, focusing on applying principles of professional practice in the financial services industry. The assignment covers the benefits of ethical behavior, the impact of economic climate on the financial sector, and strategies for corporate and environmental responsibility, including specific initiatives for environmental sustainability. It addresses the objectives of human service environmental sustainability policies, interrelationships affecting the financial service sector, and the benefits of PPSR and NCCC to consumers. Furthermore, it outlines guidelines for accountants, issues to consider, and the requirements of the Privacy Act regarding data handling and confidentiality. The solution references relevant sources to support the responses.

FNSINC401 APPLY
PRINCIPLES OF
PROFESSIONAL
PRACTICE TO WORK IN
THE FINANCIAL
SERVICES INDUSTRY

ACTIVITY: 1
There are many benefits of ethical behaviour to the customer service organisation:
 Competitive advantage in the market
 Helps in attracting more customers towards the products and services of the organisation.
 Obtaining customer loyalty
 Boosted reputation of company
 Boosting sales of the company (FINANCIAL SERVICES. 2019).
ACTIVITY: 2
Changes in economic climate affect the financial sector in both positive and negative. If the
economy is growing then there would be more demand for loans and credits while recessionary
conditions leads to contraction in spending power of the citizens. When interest rates are higher,
then there will be less demand for loans credits and thus leads to less investment in businesses
and purchase of new concern and opposite is the case when there are low interest rates in the
economy. Rate of unemployment decides the demand for loan and repayment of the same as
people spend less money when there is unemployment in the economy.
ACTIVITY: 3
By carrying out social, corporate and environmental responsibility helps organisation in
complying with the legislation of the government. Various policies and strategies Westpac can
frame to address the issue of environmental declining like initiatives with regards to
sustainability can be taken to develop standards, approaches and guidelines to enhance
environmental sustainability (FINANCIAL SERVICES. 2019). Techniques such as green
purchasing, carbon trading, life cycle analysis, greenhouse challenge plus and triple bottom line
reporting. By offering innovative products to meet environmental challenge can be useful as
well.
ACTIVITY: 4
Main objective of department of human service environment sustainability policy are as follows:
 Improve performance of department by ensuring that their operation should be carbon
environmental friendly.
 Reducing environmental footprint.
 Reduction in electricity consumption by 10% at their commercial sites.
ACTIVITY: 5
Interrelationships affecting the financial service sector are as follows:
 Rising economic power among emerging markets of Asia.
 The growth of superannuation suppressing bank deposits requiring adjustment among the
roles of super funds and banks along with the development of financing technique
(Financial services and professional services sector. 2020).

 Customer expectation of speedy transactions, simplicity and transparency along with shift
towards mobile and online technology is increasing.
ACTIVITY: 6
PPSR administered by AFSA has the following benefits:
 Greater visibility for determining security interest
 Better access to credit
 Information shared on real time basis helps in faster transaction.
ACTIVITY: 7
Set of guidelines to be followed by accountant is included in ICB code of conduct. The internal
administration system must be robust and efficient for managing client’s file and storing and
retrieving data related to the same. There must be allowance to access information quickly.
Personal information of the client stored in databases must be kept in a secure and confidential
manner.
ACTIVITY: 8
Benefits of NCCC to consumers are as follows:
 Understanding of credit and financial service provider and consumer’s obligations are
decided upfront (Best practices for financial companies entering the digital age. 2019).
 Reasonable enquiries into needs and financial situation of customers allows for suitable
credit to consumers.
ACTIVITY: 9
Issues needs to be consider are as follows:
 Defining clearly the role played by triple bottom line reporting in achieving objectives of
the business.
 Determining cost and resource requirement.
 Understanding of associated risk.
ACTIVITY: 10
The privacy act requires the data to be collected, stored, disclosed and utilized in a defined
manner that could not harm the individual interest of a person. The information must be stored in
a secured manner and kept confidential. Also, the person can access his information and request
amendments if reasonable can do so anytime he desires.

REFERENCES
FINANCIAL SERVICES. 2019. [Online] Available through: <
https://rsrpartners.com/practices/industry-practices/financial-services/>
Financial services and professional services sector. 2020. [Online] Available through <
https://www.ilo.org/global/industries-and-sectors/financial-services-professional-
services/lang--en/index.htm>
Best practices for financial companies entering the digital age. 2019. [Online] Available through
< https://mopinion.com/best-practices-for-financial-companies-entering-the-digital-age/>