Making Decisions in a Legal Context: FNSACC403B Assignment

This assignment solution addresses the legal context for financial services, covering various aspects of decision-making within the industry. It begins by identifying key decisions a financial manager might make daily and lists relevant legislation like ASIC and APRA. The solution emphasizes the importance of staying updated with legislative changes and the consequences of non-compliance. It then explores the roles of regulatory bodies like APRA and ASIC, including a detailed analysis of a Code of Banking Practice, its key points, and penalties for non-compliance. The assignment further delves into specific acts like the National Consumer Credit Protection Act 2009 and the Occupational Health and Safety (OH&S) requirements, discussing their impact on the financial services industry. Additionally, the solution includes research on CPA membership requirements, advantages, and methods for maintaining up-to-date knowledge. Finally, it examines changes to statutory requirements for tax agents, outlining current requirements, affected parties, processes, and penalties for non-compliance. The document provides a comprehensive overview of the legal and regulatory environment within financial services.

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FNSACC403B: Make decisions in a legal context.
Name of Participant:............................................... Date:.....................................
Element of Competency
1. Evaluate legal context for financial services work
2. Identify compliance requirements.
3. Develop procedures to ensure compliance.
Complete the following assessment tasks and ensure that any manual printouts of
evidence are signed by yourself in the bottom right hand corner. The completed
Assessment Tasks and any evidence must be provided to your Trainer in order to be
assessed on the subject, and ultimately marked Competent.
User Guide Activities
The course activities will require you to work through both the Make Decisions in a
Legal Context (FNSACC403B) User Guide.
Activity Task 1 – UG Topic 1.1
a) Write down a list of some of the decisions you could make as part of your daily
tasks within the Financial Services Industry?
1. It is the duty of the financial manager to provides report, developing strategies,
financial organizational plans for the Financial Service Industry.
2. The Financial Managers is used to provide services in many places like banks
and other insurance companies.
3. They help in the preparation in the business activity along with the financial
reports.
4. helps in final financial reports and helps to review in reduce costs
5. Helps in taking decision and looks for the financial marketing opportunities for
expanding the strategies.
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a) List the Acts, legislation or laws that you are aware of that may affect the way
that you make these decisions.
The legislations are The Australian Securities and Investment Commission
(ASIC), Australian Prudential Regulatory Authority (APRA), Australian
Competition and Consumer Commission (ACCC) AND Anti-Money Laundering
and Counter-Terrorism Financing Act 2008.
b) How could you ensure that you are up to date with changes to the legislation
listed in your answer above?
It is necessary to ensure about all the details of the legislations, which related
with financial services and must keep the records of the details about the new
updates. It is also need to track down about the records where the details of
update legislations need to mention.
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c) Explain the consequences that could be enforced if you fail to comply with
these requirements.
According to the all legislations in the Financial Industry it is necessary to ensure
about the details about it and the legislations has made for the keeping the
regulation for the people who are related with the financial industry. If the
legislations are not followed according o the Code of Conduct then they ,ay face
the consequences and it may affect in their financial occupations.
Activity Task 2 – UG Topics 1.2
a) With reference to the three tables listed in this section, who is the main
supervisor/regulator of the Australian Banking Industry?
The Australian Prudential Regulation Authority (APRA)
The Australian Securities and Investments Commission (ASIC)
The Reserve Bank of Australia (RBA);
The Australian Treasury.
The Council of Financial Regulators (CFR).
b) Access the ASIC website and access the section that covers the compliance
requirements that apply to your business within the Financial Services Industry:
http://www.asic.gov.au/asic/ASIC.ASF/byHeadline/Codes-of-practice
c) Select and print one Code of Practice relevant to your organisation.
 Read through the Code and record three key points extracted from the Code in the
space provided below.
 In addition, undertake some research and locate information in regards to the
penalties that can be imposed in the case of non-compliance against the Code.
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Code of Conduct: Code of Banking Practice
Key Point 1: the code provides a new commitment to small businesses consumers ten
written days notice of changes materially adverse alteration in the credit facilities.
(unless the alterations are also applicable on to the othe small businesses facilities or a
shorter period of notice is required for reducing or voiding the increase in the credit risk
of the bank.)
Key Point 2: commitment has been provided to those customers in the indigenous
remote communities which includes commitment to record information in relation to
available banking services in a manner accessible and towards assisting the customer
to meet the requirements of identification.
Key Point 3: Provisions in order to deal with those customers who are in financial
difficulties which also includes commitment towards dealing with an authorised financial
representative or counsellor on request for the purpose of providing a written response
along with reasons for making a assistance request and also to include details about
the dealing processes with financially challenged people on the bank website.
Penalties for non-compliance: where the code it not complied with it results in financial
penalties and fines as well as cancellation of licence in certain situations resulting out
of serious breaches
Activity Task 3 – UG Topic 1.3
a) Choose a Code of Practice or an Act from the list within this section of the User
guide and describe its purpose and how it affects the Financial Services
Industry.
Act/CoP : The National Consumer Credit Protection Act 2009
Website: http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Codes-of-practice
Purpose: The purpose is ensuring the benefits of equivalent, which helps to
protect from the air, soil and pollution and noises. The Business also helps to set
the protocols, guidelines, standard and protocols.
Effect on Financial Services Industry:
The act helps to protect the ambient the quality of air, marine, fresh water. The
environmental protection, which are hazardous wastes and the motor vehicle and
emissions.
b) List any other Acts you are aware of, that are applicable to the Financial
Services Industry, which were not listed here.
The Taxation Administration Act 1953 is one of the important acts, which is
applicable in the Financial Industry helps in managing the interpretation,
management and enforcement in the Australian Tax System.
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c) Discuss below the importance of non-financial related legislation such as
environmental or OH&S requirements.
The Occupational Health and Safety (OH&S) is one of the important legislation
which help in provide the safety for the workers and the public in their workplace
and the safe workplace environment for the employees must be provided by the
employers. Now the employees will have responsibilities according to the
employers, supervisors or team leaders and the employees. Both Commonwealth
and state bodies control health and safety in the workplace. Within these OH&S
Acts are OH&S Regulations, Standards, Codes of Practice and guidelines
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Activity Task 4 – Research Activity – UG Topics 1.4 – 1.5
(a) Undertake some research on the website for Certified Practicing Accountants and
locate information in regards to the statutory requirements for CPA membership.
Requirements for membership
For the purpose of becoming a CPA member a person must hold a degree which is
recognised by CPA Australia in any discipline.
The person must have completed the CPA program, which includes the persons
experience within a time frame of six years.
Examination process
a foundation examination is conducted by the CPA for the purpose of giving those who
are not having a degree in the fields of finance are provided the opportunity to complete
a CPA program.
Other requirements
the person making an application has to provide personal details, payment of application
fees and supporting documents for being eligible to make an application
Timeframes for compliance
the exam has to be scheduled between 12 months of enrolment.
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(b) Apart from a statutory requirement, discuss some other advantages that
may be realised by becoming a CPA.
CPA certified accountant are considered to have lot more expertise that a normal
accountant; the is a need for CPA accountants everywhere as they are trusted;
payments which are made to CPA certified
(c) What methods can you undertake to assist you in maintaining up to date
knowledge on the governing requirements that affect you (legislation/Acts,
location of information, etc.) - How often should you do this? (Hint – maybe look
for some historical version information?)
Legislation - methods Frequency of check
Information from Industry website Daily
Governing Body Website Monthly
Experienced book keepers Monthly
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(d) Refer to the Real Life Example, Changes to Statutory Requirements for Tax
Agents in Section 1.4 of this user guide and use the information within this
section (or elsewhere if required) to complete the following:
What are the current requirements?
Bookkeepers who work on a contractual
basis have to hold a professional
indemnity insurance an must be
registered as a BAS agent.
Who does this affect? All tax practitioners registered with the
TPB.
What are the current processes? No statues currently exists in relation
to PI insurance.
What needs to be changed? All Tax Practitioners will be required to
either take out PI insurance or check
that their cover is in line with the
requirements as set out by the TPB.
What needs to be done?
The TPB will be contacting all
registered
agents to outline PI requirements.
Each
tax professional will need to refer to
this
documentation or locate it within the
TPB
website to ensure that their cover is
adequate.
Each current PI policy will need to be
checked to ensure that it meets the
requirements outlined by the TPB.
When does this have to be done
by? (Statutory Timeframes)
All agents will need to notify
the Board of
their PI insurance status by 1
July 2011.
What are the penalties for non
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compliance?
an agent fails to maintain PI
cover that
meets the Board’s
requirements, the
Board may sanction the agent
for a
breach of the Code under
section 30-
10(13) of the TASA. Depending
on the
circumstances, the sanctions
available to
the Board range from cautions
to
suspension or termination of an
agent’s
registration
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Activity Task 5 – UG Topics 1.6 – 1.7
(a) Describe an example of why a business in the Financial Services Industry
could potentially be involved in a court case for each type of common
law.
Negligence
If any injury or a person is identified with a negligence activity and someone
affected and faced any damages or loss due to the duty of care then it will
recognize as negligence.
Contract Law
Contract is define as a mutual agreement between two parties where it should
formalise a promise which must be legally binding. Under the contract the
agreement could made for buying a house pr car, for repay the loan.
Employment Law
The Employment law provides the consequences for the employees where an
employee must got the employment under this act. The Act also provides the
leaves, services, time allowable and on the terms of the employment this act also
provides under an employment contract which provides the legislations and
protect from every workplace bullying and sexual harassment.
Criminal Law
The Criminal Act of Australia has legislated the part, which helps to provide the
protection from the crime, which is included like assault, robbery, fraud and
harassments. This law provide the protection under the Criminal activities.
Environmental Law
The Environmental provides the legislations where it is regulated by the
governing body of Australia and helps to manage the management of the
environment. Under the Environmental Law it protects the area which iare
affected by the pollution, waste, green house gases, recycling and natural
resources.
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(b) Refer to the common law case examples within this section of the user guide and
discuss the following points with your group/supervisor.
Real Life Case #3 - Negligence
Outline of case – In the case of ASIC v Brighton Hall Securities Pty Ltd (in
Liquidation) the negligence has found and the compensations has been claimed.
Damages sought/awarded
According to the case study, the damage has occur due to the negligence by the
Brighton Hall Securities who carried a financial service business and ASIC has
charged against them for the negligent act and claimed $14 million as
compensations.
Issues argued
The issues has been argued by the ASIC that the negligence has occur for the
parties where they have aimed to preventing the need to commence litigation.
Now the ASIC has the rights to the Section 50 of the ASIC act where it will
applicable on the begin and carry on civil proceeding for damages for investors
where it appears and proceeds according to the public interest.
Real Life Case #4 – Unfair dismissal
Outline of case
Candyce Arathoon v Zurich Financial Services Australia Limited
Damages sought/awarded
In this case the Australian Industrial Commission has found that a person
employment Has been unjust or unreasonable. in this settlement the
discontinuance matter has been put under the conciliation process and given
statement provided against the client by the unreasonable actions.
Issues argued
In this case the Australian Industrial Commission has found that a person
employment Has been unjust or unreasonable. in this settlement the
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