Diploma of Finance and Mortgage Broking Management ... · PDF fileEducation, Science and...

Diploma of

Finance and Mortgage

Broking Management

FNS50311

Learning guide

AAMC Training Group is an approved National Registered Training Organisation (number 51428) and its

accredited courses are approved under the Australian Qualifications Framework. Some courses also provide the

education requirements to give financial product advice in accordance with the Australian Securities and

Investment Commission’s (ASIC) Regulatory Guide 146 (RG146 – previously PS146).

Copyright

© Copyright 2013 AAMC Training Group Pty Ltd

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means

without permission in writing from the author, AAMC Training Group.

Legal Notices/Disclaimer

While every attempt has been made to verify the information provided within this publication. AAMC Training

does not accept any liability for any errors, omissions, lack of care, default, negligence or contrary interpretation

of the subject matter herein. This publication is not intended for use as a source of legal or accounting advice.

AAMC Training stresses that the information contained herein is subject to varying State and Local laws and

regulations. All users of the information contained in this publication are advised to confirm applicable laws and

regulations prior to using the information in their business. No liability is accepted for any information or

services which may appear in any other format. No responsibility is taken for any information or services which

may appear on any linked websites.

The user of this publication assumes sole responsibility for the use of these materials and information. AAMC

Training assume no responsibility or liability for any loss or damage of any kind whatsoever arising as a result of

any user of these materials and information acting on the opinions, advice and recommendation expressly or

implicitly detailed herein. AAMC Training expressly does not guarantee any results you may or may not get as a

result of following the recommendations and advice contain herein. The users must test everything for

themselves prior to implementation.

Acknowledgements

This learning guide has drawn on the published works of the AAMC Training Group and the Department of

Education, Science and Training (DEST).

Last updated: 25 May 2015 Version 2

FNS50311 Diploma of Finance and Mortgage Broking Management

Learning guide © AAMC Training Group Contents 1

Contents

INTRODUCTION

Welcome to the AAMC Training Group (AAMC) 1

Course content 3

How to use this learning guide 4

Student policies 5

Trainers/Assessors 6

Learning tools 8

Elements of competency 9

LEARNING GUIDE MODULES

MODULE 1 Financial Services Professional Practice, Legislation and Codes of Practice

Introduction 26

Section 1 The Australian financial sector and the financial system 27

Financial services providers 38

The regulators and their impact on the Australian financial sector 48

Financial services professionals 57

The professional collections industry 59

External factors and the Australian economy 63

Section 2 Industry guidelines, procedures and legislation 87

Key components of the compliance framework 88

The regulatory framework 88

The judicial tier of compliance 89

Financial Services Regulation (FSR) 95

Ethics 111

The National Credit Code (NCCP) 116

Australian Consumer Law – Unfair contract terms and personal property securities 154

Personal Property Securities 160

Meeting privacy requirements 160

Money laundering and terrorism financing 183

Other legislation 189

Section 3 Managing information 193

Documentation used in the finance industry 194

Section 4 Identifying sustainability issues for the financial services industry 203

The Global Financial Crisis (GFC) and sustainability 203

Sustainability and the Australian financial services sector 212

Section 5 Participating in and facilitating work team activities 217

Communicating with customers 221

Best practice 221

Complaints 222

Section 6 Planning 223

Taking into consideration time, resources and other constraints 223

Planning and the organisation 228


Contents 2 © AAMC Training Group Learning guide

Role of teams in the workplace 230

Section 7 Developing and maintaining personal competency 235

Section 8 Industry Codes of Practice 241

Identifying changes and implications of laws, rules and regulations 252

Maintaining statutory records 258

MODULE 2 Lending process

Section 1 Lenders and loan types 263

Learning outcomes 263

Types of lenders 264

Types of loans 268

The National Rental Affordability Scheme (NRAS) 276

Self-Managed Super Funds 279

Non-resident lending (FIRB) 282

Personal loans 287

Equipment finance overview 288

Suite of equipment finance products 292

Equipment finance – specialist areas 301

Equipment finance – other product features 302

Low doc financing – commercial and equipment finance 303

Commercial property lending overview 304

Deposit bonds 304

Section 2 Loan characteristics 307


Core lending products 307

Construction loans 315

Popular loan features/packages 318

Other loan features 322

Fees 322

Bank peripherals and our obligations 323

Risk management products 325

Gearing 328

Section 3 General lending criteria 331


Acceptable forms of income 331

Supporting documentation required 335

Acceptable forms of security 338

Unacceptable forms of security 339

Loan to value ratio (LVR) 339

Section 4 Thought process for application and assessment 341


The initial thought process 341

Client Needs Review/Fact Find 343

The seven C’s of credit 343

Statement of position 347



Risks and mitigants 348

Qualifying rates 349

Debt Service Ratios (DSR) 349

Net Surplus Ratios (NSR) 350

Uncommitted Monthly Income (UMI) 352

NET SERVICING RATIO (NSR) 353

Loan serviceability calculators 354

Lenders Mortgage Insurance (LMI) 354

Veda advantage and credit challenges 357

Section 5 The loan–from interview to settlement 363


The application enquiry 364

The application process 368

Veda Advantage checks 371

Submission to the financier 371

The approval/decline process 373

Settlement 373

Residential mortgage loan process diagram 377

Section 6 Calculation of fees, grants and concessions 379


Property purchase fees 379

Loan establishment fees 382

First home owners 383

Section 7 Process applications for credit 389

National Consumer Credit Regulation 389

Credit process overview 391

Identifying types of applicants 391

Lending fundamentals 392

Processing applications 392

Completing the loan process 393

Fully approved loan applications 406

Organisational policies & procedures and standard operational procedures 409

Section 8 Reading and understanding financials 411


Financial reports 411

Self-employed borrower 418

Nature and formation of companies 419

Trusts 423

Self-employed case study 425

Section 9 Develop and nurture relationships 429

MODULE 3 Contribute to OHS Hazard Identification and Risk Assessment

Section 1 Health and safety practices in the workplace 437

Workplace health and safety (WHS) laws 437

Characteristics of a proactive health and safety compliant workplace 441



What is ‘duty of care’? 442

Organising and maintaining workplace safety procedures 442

Monitoring work procedures 443

Promoting workplace Health and Safety practices 443

Why can substance abuse be a problem? 444

Section 2 Risk Management Procedures 445

Steps 445

Section 3 The Company Health and Safety Plan 461

Why have a workplace health and safety plan? 461

What is a health and safety program? 461

Section 4 Safety Committee 467

Section 5 Hazard identification and control 469

Identifying types of hazards 469

Seven key elements of an effective hazard control program 470

Section 6 Accident investigation 481

The process 481

MODULE 4 Complex Lending

Section 1 Understanding financials of corporate structures 491


The regulators 491

Nature of companies 492

The sole trader 499

Trusts 500

Reading financial reports and managing risk assessment process 504

Financial reports 505

Reading financials with confidence 525

Understanding financial ratios 531

Section 2 Lending products and services 541

Learning outcome 541

Commercial banking 541

Interest rates 542

Securitisation 544

Commercial finance 546

Product lending overview 547

Business/commercial products 548

Other loan products 549

Product disclosure statement booklets 554

Interest charging methods 554

Loan terms 554

Lending value ratios 554

Property development loans 555

Valuations 557

Eligible securities 557

Fixed and floating charge 559



Directors guarantees 559

Environmental responsibility 560

Benchmarking 561

Insurances 564

Buy/sell agreements 564

Key person insurance 565

Section 3 Loan application—structured process 567


Loan application overview 567

Starting the loan process journey 568

Attending the loan interview 569

Analysing the information 570

Presenting your recommendation to client 571

Loan application notes submission guideline 572

Signing of loan offer by clients 577

Settling a loan 577

Complaints handling scheme 578

Self-Managed Super Funds 579

Section 4 Equipment and vehicle finance 583


General overview 583

Typical client profile 585

Assets that can be financed 586

Sale and lease back facilities 594

Cross sales 594

Information required by the lenders 594

How lenders assess the loan application 596

Pre-approved limits 597

Valuations 598

Exercise Case Study: Chattel mortgage 601

MODULE 5 Risk Management 621

Section 1 Identify and apply risk management processes 623

Defining risk 623

The risk management process 626

Risk management strategy 629

Monitor and review effectiveness of risk treatment/s 654

Credit risk analysis 659

The five Cs of credit 661

Parser analysis 671

MODULE 6 Marketing Strategies

Section 1 Grow the practice 677


The approach 677

Business planning 677



Marketing strategy 678

Developing a promotional plan 683

How to write a marketing plan 686

Identifying finance markets 689

Leveraging off relationships 690

Finding prospects 692

Developing a growth plan 704

Implementation plan 706

MODEL ANSWERS

Model answers 707

APPENDICES

Appendix 1 Statement of Credit Advice 723

Appendix 2 Client Needs Review 731

Appendix 3 Approved Product List Commission Rates 739

Appendix 4 Complaints Resolution Scheme 741

Appendix 5 Documentation checklist 743

Appendix 6 Competitor watch/analysis 745

Appendix 7 Marketing action plan 747

Appendix 8 Marketing and advertising budget template 749

Appendix 9 Cash flow template 751

Appendix 10 Sales mix budget template 753

Appendix 11 Team leave roster 755

Appendix 12 SWOT Analysis 757

Appendix 13 Schedule of drawings 759

Appendix 14 Asset register 761

Appendix 15 Business loan application form 763

Appendix 16 Guide to writing a Marketing Plan 777

ASSESSMENT

Assessment information 791

Course Evaluation 793


Learning guide © AAMC Training Group 1

Welcome to the AAMC Training Group (AAMC)

“I was able to stand on the shoulders of my teachers and see a world

that I couldn’t otherwise see”

Joel Klein, New York City Schools Chancellor

Congratulations on your decision to learn with AAMC Training Group.

We are pleased that you chose to complete this course with us and we

look forward to assisting you to further develop and enhance your

current skills in Finance/Mortgage Broking Management.

AAMC Training is a nationally registered training organisation that

delivers total training and consultative solutions to the financial services,

training, retail, insurance brokers, financial planners, real estate,

business brokers and settlement industries.

AAMC Training offers face-to-face, online or correspondence learning,

with an emphasis towards a blended learning model.

By using a holistic and consultative approach to training, AAMC Training

is strongly placed to assist clients with their personal growth and

business development. There is a strong point of differentiation from

other training companies for AAMC Training, by being able to offer

clients a comprehensive scope of courses to meet their every need.

FNS10 Financial Services Training Package

Job roles change constantly to reflect business demands and customer

expectations. In this regard the FNS10 Financial Services Training

Package shows significant inclusion of customer service and sales and

marketing skills in qualifications. Front line and customer contact centre

staff in the industry do not just process financial transactions but build

relationships with customers and clients and actively promote products

and services within the bounds of regulation. Use of information

technology and a team-based environment for all aspects of work are

also common themes.

While specialist industry skills are the foundation of the FNS10 Package

all qualifications include occupational health and safety and

sustainability skills necessary for any modern workplace and there is

more commonality of units of competency across the Package and far

more use of imported units, particularly from the Business Services

(BSB07) Training Package to ensure flexibility and portability of skills.

The FNS10 Training Package has deliberately flexible qualifications

where industry sector convergence is occurring, the most obvious being

in banking where similar services and products are increasingly offered

through credit unions and other deposit-taking organisations. Similarly

providing financial advice is covered in various qualifications such as

insurance specialisations and superannuation and not just in financial

planning roles.


2 © AAMC Training Group Learning guide

This Diploma of Finance and Mortgage Broking Management

FNS50311 course specifies the competencies required to enable

individuals to provide a range of finance and mortgage broking services

covering commercial finance.

The Diploma of Finance and Mortgage Broking Management FNS50311 is

recognised by the FBAA, MFAA and NTIS.

This qualification is designed to reflect the role of employees working in

finance and mortgage broking, including those who are independent and

work through an aggregator, or who need to manage a workplace team.

In addition to undertaking duties as described in the FNS40811

Certificate IV in Finance and Mortgage Broking, they may also perform

duties such as:

recommend loan combinations which meet clients' needs

assess prospective borrowers' eligibility to obtain finance and their

capacity to service debt

operate and build their own independent business

broker complex and/commercial leases and equipment finance,

commercial finance, project finance and finance for property developers

act as licensees.



Course content

This Diploma of Finance and Mortgage Broking Management (FNS50311)

course consists of:

Six modules containing 15 units of competency

Multiple choice assessments

Written assessments/case studies.

Some of these units of competency may have been completed via other

FNS04 or FNS10 Training Packages. You will have an opportunity to

apply for national recognition within the final assessments. Please

ensure you check your statement of academic record as different

training providers offered differing electives.

Once your national recognition form and required evidence has been

submitted for assessment, you will be deemed competent in the units

you applied for.

CORE Units of Competency FNSFMK505A Comply with financial services legislation and industry codes of

practice

BSBRSK401A Identify risk and apply risk management processes

FNSFMB401A Prepare loan application on behalf of finance or mortgage broking clients

FNSFMB402A Provide finance and mortgage broking services

FNSFMB403A Present broking options to client

FNSFMB502A Identify and develop complex broking options for client

FNSFMB503A Present broking options to client with complex needs

FNSFMB504A Implement complex loan structures

FNSCUS501A Develop and nurture relationships with clients, other professionals and third party referrers

FNSINC401A Apply principles of professional practice to work in the financial

services industry

ELECTIVE Units of Competency

BSBOHS303B Contribute to OHS hazard identification and risk assessment

FNSFMB501A Settle applications and loan arrangements in the finance and mortgage broking industry

FNSINC402A Develop and maintain in-depth knowledge of products and services used by an organisation or sector

BSBCOM501B Identify and interpret compliance requirements

FNSPRM603A Grow the practice

Completion of Diploma

You need to proceed through the learning material, completing self-

assessment activities when prompted. You will also be instructed to

complete online multi-choice questions throughout the learning guide.

Final written assessments are to be downloaded from the Members' Area

once all modules have been read.



How to use this learning guide

This learning guide provides you with the information and activities that

will assist you in achieving competency in these units. It has been

developed as a tool to assist students in their independent learning. All

learners will benefit from using this guide as it will provide a focus for

your course of study. By working through and completing this learning

guide students will be compiling a portfolio of documents which can be

used in the workplace.

This learning guide will:

set out the sequence of learning and assessments.

explain the relevance of concepts or case studies.

describe the skills needed to demonstrate competency in this unit.

help you to practise your skills.

direct you to other sources of additional information.

You can develop competency in this unit in a range of ways, including:

reading the material in this guide

reading the material in referenced texts

observing others in the workplace

completing the activities in this guide.

Online multi-choice assessments

As you read through the learning guide, you will be asked to complete

online multi-choice assessments which you can locate in the Members’

Area of AAMC Training Group’s website: www.aamctraining.edu.au.

You will be electronically marked satisfactory in these; you have three

attempts at each assessment if required.

Fin Serv Legislation MCQ 1

Fin Serv Legislation MCQ 2

Loan Applications MCQ 1



BSBOHS303B MCQ

Complex Lending MCQ 1



BSBRSK401A MCQ

FNSPRM603A MCQ



Written assessments

Once you have completed the learning manual and online multi-choice

assessments you are required to complete the following written

assessments/case studies which you will also find in the Members’ Area:

Financial Services Legislation & Compliance Assessment

Loan Application Process Assessment

BSBOHS303B Assessment

Complex Lending Assessment

BSBRSK401A Assessment

FNSPRM603A Assessment

In order for your written assessments to be marked you will be required

to upload each completed assessment with the assessment cover sheet

via the AAMC Training portal. Your written assessment must be

uploaded in an electronic format i.e. Word, Excel, PDF or Scan.

Once your assessment has been uploaded it will be pending review with

your nominated course assessor. Once you have been marked as

satisfactory you will receive an email. If you are marked as not yet

satisfactory you will be asked to provide additional information or re visit

the assessment and then re upload your amended case study or written

tasks.

Student policies

Recognition of prior learning (RPL)

AAMC Training offers Recognition of Prior Learning (RPL) for all

qualifications/ competency units. RPL is an assessment only pathway

acknowledging the prior learning and current competency of an

individual. To find out more about our RPL policy and process please

view our website.

National recognition

AAMC Training recognises the qualification and certificates issued by

other RTOs. If you have already completed all or part of a qualification/

course and have received a certificate from another training provider

you can provide us with a copy of that certificate and we will give you

direct exemptions from your course with AAMC Training.

Please note: the units of competency on your certificate must be the

same as the units of competency within the course you wish to be

‘nationally recognised’. To find out more about our National Recognition

policy and process please view our website.



Appeals

AAMC Training acknowledges that learners have the right to appeal an

assessment decision where they have valid ground to do so. To find out

more about our policy and procedures for lodging an appeal please view

our website.

What resources will you need?

You will be directed from time to time to source information from web sites.

These references will be contained in the session information in the guide.

It is recommended that you purchase a lever arch file and clear plastic

sheets so that you may incorporate any materials that you collect from

the internet.

Trainers/Assessors

AAMC Training has the highest quality industry experienced trainers

coupled with sound quality experienced management team that

understands the needs of industry and clients and their desire for

business success.

All AAMC Training trainers and assessors are qualified industry

professionals. Contact your trainer/facilitator if you encounter difficulties

with your study. Your trainer/facilitator will provide contact details at the

commencement of the course.

Regardless of your preferred delivery choice qualified trainers will always

be contactable for tutoring and assistance both via email and telephone.

Plus, if you undertake this course via face to face with AAMC Training

and there are any areas you still do not understand you are welcome to

return for free to the next available class.

Trainer/Facilitator contact details

Please fill in the following details when you are allocated a

Trainer/Facilitator:

Name

Phone number

Fax number

Work email

Home email

Contact times



Need assistance with your assessments?

Please contact:

Barry Doherty

Senior Assessor

AAMC Training Group Pty Ltd

Head office:

Unit 5/17 Foley Street

BALCATTA WA 6021

Contact numbers:

Office: +61 8 9344 4088

Fax: +61 8 9344 4188

Email: [email protected]

To assist us in continuous improvement of our training programs, we

would appreciate if you would complete and return the course evaluation

sheet provided at the rear of the learning guide once you have finished

this course.

mailto:[email protected]



There may be editor’s hints

and tips in the margins

throughout the document...

Learning tools

As you work through the learning guide you will notice various symbols

in the margins. The key is as follows:

Activity

Unit of competency outcome

Website link/source

Case study

Important information

Suggested reading

Discuss this

Please note

Editor’s notes

You may also encounter a number of activities in the learning guide. As

you progress through the learning guide, you may encounter a number

of activities. Some activities are suited to classroom or group activities;

others require external research by the student.

These learning activities are simply one way of developing knowledge

and skills, preparing you for assessment but answers are not

required to be submitted as part of the assessment process. Each

activity has a model answer located at the rear of the learning guide. A

typical activity will look something like this:

Activity 1 – Contracts

What is a contract and what are its components?

Check the model answers section



Elements of competency

The FNS10 units of competency all refer to relevant government regulatory requirements,

legislation, Australian Standards and industry and enterprise codes of practice that must be

adhered to in day-to-day operations.

National recognition may be granted for some of the following elements of competency.

BSBCOM501B Identify and interpret compliance requirements

This unit describes the performance outcomes, skills and knowledge required to identify and

interpret the range of internal and external compliance requirements and obligations that must

be fulfilled by an organisation. A range of legislation, rules, regulations and codes of practice

may apply to this unit at the time of endorsement, depending on job roles and jurisdictions.

Element Performance criteria

1. Clarify the scope of operations

1.1 Identify and review the relevant range of operations and the sphere of business arrangements of the organisation

1.2 Conduct an analysis of the operations and business arrangements of the organisation and identify the functions, products and services that may be subject to compliance requirements

1.3 Develop and document work activity plans for determining relevant compliance requirements

1.4 Obtain approval of plans from relevant organisational personnel

2. Identify

compliance requirements

2.1 Conduct a search of information on internal and external compliance

requirements using appropriate search resources , including relevant Australian and international standards

2.2 Ensure the search of compliance requirements scans across all relevant jurisdictions of laws, regulations, and industry and organisational codes and standards and identify pertinent compliance requirements

2.3 Progressively review information collected in terms of its relevance to the organisation's operations, services and products

2.4 Organise and store gathered information on relevant compliance requirements in an appropriate format for further analysis

3. Interpret, analyse and prioritise identified compliance requirements

3.1 Review and interpret collected information in terms of its relevance to the organisation's functions, services and products

3.2 Discuss and clarify with relevant internal or external personnel ambiguities, uncertainties and problems experienced in interpreting identified compliance information

3.3 Identify, analyse and prioritise relevant compliance requirements in terms of

critical implications for the organisation and risks and consequence of possible breaches

3.4 Group pertinent compliance requirements into those that are critical and central to the organisation's operations, those that are important in some circumstances but are not central to the organisation's operations, and those that are pertinent but are incidental to the organisation's operations

4. Document compliance requirements

4.1 Organise and document outcomes of the identification and interpretation activities

4.2 Prepare and communicate reports of relevant compliance requirements and assessment of implications to relevant personnel performing specific compliance management functions



BSBRSK401A Identify risk and apply risk management processes

This unit describes the performance outcomes, skills and knowledge required to identify risks

and to apply established risk management processes to a subset of an organisation or project's

operations that are within the person's own work responsibilities and area of operation. No

licensing, legislative, regulatory or certification requirements apply to this unit at the time of

endorsement.


1. Identify risks

1.1 Identify the context for risk management 1.2 Identify risks using tools, ensuring all reasonable steps have been taken to

identify all risks 1.3 Document identified risks in accordance with relevant policies, procedures

and legislation

2. Analyse and evaluate risks

2.1 Analyse and document risks in consultation with relevant stakeholders 2.2 Undertake risk categorisation and determine level of risk 2.3 Document analysis processes and outcomes

3. Treat risks

3.1 Determine appropriate control measures for risks and assess for strengths and weaknesses

3.2 Identify control measures for all risks 3.3 Refer risks relevant to whole of organisation or having an impact beyond

own work responsibilities and area of operation to others as per established

policies and procedures 3.4 Choose and implement control measures for own area of operation and/or

responsibilities 3.5 Prepare and implement treatment plans

4. Monitor and review effectiveness of risk treatment/s

4.1 Regularly review implemented treatment/s against measures of success 4.2 Use review results to improve the treatment of risks 4.3 Provide assistance to auditing risk in own area of operation 4.4 Monitor and review management of risk in own area of operation



FNSFMB401A Prepare loan application on behalf of finance or

mortgage broking clients

This unit describes the performance outcomes, skills and knowledge required to prepare a

client loan application to a relevant lender and present and process the loan using appropriate

channels. Assistance with loan settlement may also apply. This unit may apply to job roles

subject to licensing, legislative, regulatory or certification requirements so Commonwealth,

State or Territory requirements should be confirmed with the relevant body.


1. Compile necessary information

1.1 Appropriate and relevant lender forms are collected, completed, and relevant signatures gathered in an appropriate format

1.2 Information required to support loan application is sourced in accordance with the Consumer Credit Code, compliance requirements and security policies

2. Prepare loan documentation

2.1 Documentation is prepared that accurately reflects the client's financial situation, personal information and complies with lender requirements and guidelines

2.2 Basic requirements of loan, including amount, term and interest rate are confirmed and all documentation checked for accuracy and readability

2.3 All relevant processes for proper execution of documentation are

completed efficiently and within an appropriate timeframe

3. Present documentation for assessment

3.1 Documentation is submitted to appropriate lender or approving officer in appropriate manner to protect client confidentiality

3.2 Application offer or non-offer of loan is determined and client is notified in timely manner

3.3 Clear, comprehensive and accurate information is given to client as to their rights, obligations, responsibilities and manner in which to proceed if loan application is non-offer

4. Maintain communication with relevant parties

4.1 Clear and open communication is maintained throughout the loan preparation and presentation process with lender and client

4.2 Additional information requested by lender to support loan application is gathered in an efficient and timely manner

4.3 Clear, comprehensive and accurate information is given to client as to the

manner in which to proceed immediately following loan approval



FNSFMB402A Provide finance and mortgage broking services

This unit describes the performance outcomes, skills and knowledge required to determine a

client's finance broking requirements and explain capabilities, legal and compliance related

issues so the client is aware of their rights. This unit may apply to job roles subject to

licensing, legislative, regulatory or certification requirements so Commonwealth, State or

Territory requirements should be confirmed with the relevant body.


1. Educate client and build rapport

1.1 The finance and mortgage broking process is explained to the client in a clear and unambiguous way with the background, credentials and role of the broker clarified to build rapport

1.2 The services, values and capacity of the organisation are presented to the client and the client's understanding of the fees and charges are confirmed

1.3 Procedures for complaints handling and resolution are identified and confirmed with the client

2. Determine client's existing financial

situation

2.1 Client is asked to disclose relevant facts to begin determining their personal and financial situation and the current income, expenditure and liabilities

of the client are established 2.2 Current investment and assets position of the client are determined and an

initial analysis of client's financial position undertaken based on the extent of client disclosure

3. Determine client goals and priorities with respect to finance broking

3.1 Client is asked to clarify their investment goals and expectations 3.2 Risk issues and tolerance are explored comprehensively with client and

client concerns, if any, are identified and responded to promptly and appropriately

3.3 Client priorities are established and confirmed 3.4 Specialist advice is sought where necessary or client is referred to

appropriate sources where required advice or services cannot be provided

4. Prepare necessary documentation follow-up

4.1 All relevant client facts, information, financial and personal histories are documented, checked and managed confidentially in accordance with organisation policy and guidelines and relevant legislation and industry codes of practice

4.2 Client records are created or updated where necessary in a clear and concise format and securely filed in a format and location readily accessible to other appropriate advisers



FNSFMB403A Present broking options to client

This unit describes the performance outcomes, skills and knowledge required to collect

information, conduct relevant research and develop and present broking options to a client.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification

requirements so Commonwealth, State or Territory requirements should be confirmed with the

relevant body.


1. Gather relevant information

1.1 Lender products, services and features are reviewed and additional industry information researched, where necessary, for lender products and services that are relevant, could impact or provide additional benefits to clients

1.2 Clients needs are acknowledged and compared to most appropriate lender

product and service

2. Prepare appropriate options

2.1 Relevant lender information, product information, and support material are gathered and developed in a clear and concise format for the client

2.2 All information is organised clearly and concisely in a manner appropriate to

the client's needs and level of understanding

3. Present options to client

3.1 Recommended product and its features is explained to client in a clear and unambiguous way with the impact of recommendations clearly and comprehensively discussed with the client including strengths, weaknesses, benefits and risks

3.2 Fees, charges and commissions are clearly explained to client 3.3 Strategic and commercial relationship of the representative and their

organisation to recommended products is communicated to the client

4. Negotiate effectively

4.1 Client concerns, if any, are identified and responded to appropriately and

alternatives to recommendations presented when requested 4.2 Client is encouraged to make informed choices using the relevant

information and documentation presented

5. Obtain agreement to

proceed

5.1 Agreement to proceed is obtained from client once concerns and issues are

worked through and implementation actions discussed, clarified and agreed between client and broker

5.2 Client records are created or updated appropriately and in a clear and concise format in anticipation for preparation of the loan application



FNSFBRK502A Identify and develop complex broking options for client

This unit describes the functions involved in determining and preparing solutions for clients

who need finance broking strategies which are more complex or require a high level of

knowledge of the mortgage and finance broking industry as well as the broader finance

industry.


1. Identify complex broking needs of client

1.1 Special or complex features of a client’s situation and objectives are discussed, reviewed and clarified

1.2 Risk issues and tolerance are explored comprehensively and ethically with client including unusual risks or requirements

1.3 Interdependencies and implications are considered and discussed with client 1.4 Risks to the client and/or organisation are assessed for their impact according

to company policy, guidelines and relevant legislation. 1.5 Further questioning and information gathering is engaged as required

2. Research and consider complex broking solutions based on client needs

2.1 Current client situation is analysed to determine opportunities and constraints 2.2 Research into loan structures or options is conducted including those which

are new or non-standard, if required 2.3 Complex financial issues are considered in terms of economic, legislation,

taxation, legal, insurance and other implications 2.4 Possible loan structures or options are analysed, modelled, prioritised and

measured against risk and inappropriate options are rejected including relevant fees and charges

2.5 Preliminary option/s are checked to ensure compliance with relevant acts, legislation, regulatory and ethical guidelines and are assessed for their ability to successfully achieve objectives

3. Select and gather appropriate option/s and information for client review

3.1 Broking options for review with client are selected and explanatory material developed or obtained

3.2 If appropriate, consequences and other issues relating to the broking strategy are considered including referrals to accountant, financial adviser, or lawyer where required

3.3 Recommendations on risk management strategies are developed and incorporated into materials for client

3.4 Description of anticipated fees and charges are incorporated into materials for client

3.5 Information on complaints resolution procedures (internal and external) is included in the client information

3.6 Broking recommendations and loan structures that will be presented to client

are documented according to organisation guidelines and procedures



FNSFMB503A Present broking options to client with complex needs

This unit describes the performance outcomes, skills and knowledge required to create rapport

with clients with complex or special needs and present complex information to them,

negotiating effectively and completing and maintaining required documentation, including a

plan. This unit may apply to job roles subject to licensing, legislative, regulatory or certification

requirements so Commonwealth, State or Territory requirements should be confirmed with the

relevant body.


1. Develop rapport with client

1.1 Client’s needs and objectives are addressed in a manner consistent with their level of financial understanding and which directly applies to the objectives and requirements they have disclosed

1.2 High level active listening skills are demonstrated in dealings with client, including those with special needs

1.3 Services explained to client are given orally and in writing in a clear and unambiguous way, avoiding jargon and in a language appropriate to the receiver

1.4 Strategies and recommendations are introduced to client in a clear and unambiguous way

1.5 Disclosure of capacity to client is consistent with industry requirements and

organisation guidelines

2. Present broking options to the client

2.1 Client is guided through broking options and impact of each option is clearly and comprehensively discussed with client including advantages, disadvantages, risks and financial implications, taking into account various

assumptions or possibilities 2.2 Fees, charges and commissions are clearly explained to the client and copies of

the research and other documentation provided 2.3 Any commercial relationship of the representative and their organisation to

products and or services mentioned in the plan are disclosed 2.4 Adviser identifies and addresses issues that in their professional judgement

may require further consideration or consultation with other financial services professionals

2.5 Confirmation is sought from client that they understand the broking options presented

3. Negotiate effectively

3.1 Client concerns, if any, are identified and responded to appropriately with alternatives to recommendations presented when requested

3.2 Limits imposed by regulatory requirements or organisation guidelines are observed

3.3 Restraint and control of feelings are exercised when dealing with conflict

situations involving clients 3.4 Communication channels are maintained when dealing with complaints and

following complaint handling procedures 3.5 Agreement to proceed is obtained from the client

4. Complete and maintain necessary documentation

4.1 Client interaction is recorded in accordance with the current industry documentation requirements

4.2 Confirmation including relevant documentation and contract variation is provided to the client

4.3 Instructing or purchasing documents where required are signed by the client 4.4 Post broking service to be provided is clearly defined, and is communicated to

the client 4.5 Client records are created or updated



FNSFMB504A Implement complex loan structures

This unit describes the performance outcomes, skills and knowledge required to establish

actions, timings and priorities needed to implement complex loans and supervise the

implementation process. This unit may apply to job roles subject to licensing, legislative,

regulatory or certification requirements so Commonwealth, State or Territory requirements

should be confirmed with the relevant body.


1. Organise implementation actions

1.1 Special or complex features of the client's situation are reviewed for implementation implications including high asset, income or expenditure requirements, complex taxation, the complex nature of the securities to be taken, forms of security to be taken for complex transactions and other legal or complex issues

1.2 Implementation actions are prioritised, timing for each action is planned, and activities are confirmed to be consistent with client needs and specifications

1.3 Implementation actions including timing and priority are carried out to maximum advantage for client

1.4 Implementation actions required by the client are clearly explained, written agreement to actions is obtained, and implementation records are established

2. Establish appropriate procedures for implementation

2.1 Personnel to implement each action for the loan structure are identified and briefed and internal and external documentation requirements completed

2.2 Implementation actions that depend on, or involve actions by, other professional such as accountants and lawyers are coordinated with these professionals

2.3 Monitoring procedures are established for critical implementation timing and priorities

3. Undertake and/or supervise implementation

3.1 Client is briefed on actions to be undertaken and assistance is provided where needed

3.2 Instructions are issued to internal and external personnel as per loan structure 3.3 Consultation and monitoring is maintained with other professionals where joint

implementation action is required and checks and follow-ups are made on lodgement of documentation to ensure plan timings are met

3.4 Fees and charges are obtained and processed according to organisation and

legislative requirements 3.5 Client is debriefed and any concerns are addressed



FNSCUS501A Develop and nurture relationships with clients, other

professionals and third party referrers

This unit describes the performance outcomes, skills and knowledge required to communicate

and network with a wide range of people internal and external to the organisation to increase

efficiency, build continuing relationships and improve sales. No licensing, legislative, regulatory

or certification requirements apply to this unit at the time of endorsement.


1. Develop professional business relationships

1.1 All dealings with the client, professionals, and other third parties are conducted professionally in accordance with the organisation's policies and procedures and legislative, regulatory and professional codes of practice

1.2 The organisation's social, business and ethical standards are used to develop and maintain positive relationships

1.3 Dealings with colleagues, clients and other parties is carried out through competent performance and with respect to confidentiality

1.4 Interpersonal styles and methods are adjusted to the needs and situation of other parties

2. Build and maintain business networks and relationships

2.1 Business and professional networks and other relationships are developed and maintained to benefit the organisation

2.2 Business and professional networks are used to identify and cultivate relationships in order to promote and market the organisation

2.3 Other professionals and third parties are cooperated with to expand and enhance the reputation of the organisation and to identify new and improved business practices

3. Nurture relationships and build on referral business for the long term

3.1 Referral business is followed-up through appropriate communication channels to find and secure new business relationships

3.2 Referral needs are identified quickly and information provided about organisation's relevant products and services

3.3 An interview with referral business is secured where needs can be met, or other sources of information are identified that may assist the client



FNSINC401A Apply principles of professional practice to work in the

financial services industry

This unit describes the performance outcomes, skills and knowledge required to identify industry

professional approaches to procedures, guidelines, policies and standards, including ethical

requirements and model and meet expectations of these in all aspects of work. This unit has

application to a variety of financial services sectors and is applicable to individuals working within

enterprises and job roles subject to licensing, legislative, regulatory or certification requirements

so the varying Commonwealth, State or Territory requirements should be confirmed with the

relevant body.


1. Identify the scope, sectors and responsibilities of the industry

1.1 External forces impacting on the financial services industry are identified and considered in carrying out activities

1.2 The main sectors of the financial services industry and the interrelationship between sectors are identified and considered in carrying out activities

1.3 The roles and responsibilities of other participants in the financial services

industry are identified and considered in carrying out activities

2. Identify and apply financial services industry guidelines,

procedures and legislation

2.1 Information on relevant legislation, regulations and codes of practice is collected, analysed and effectively applied to the job role

2.2 Own work practice is clarified and regularly refined in light of relevant

legislation, regulations and codes of practice and organisation policies, guidelines and procedures

2.3 Relevant codes of practice are used to guide an ethical approach to workplace practice and decisions

3. Identify sustainability issues for the financial services industry

3.1 Information on sustainability policies, strategies and impacts on industry is obtained and from a range of sources and analysed

3.2 Environmental sustainability is identified as an integral part of business planning and promoted as a business opportunity

3.3 Work planning incorporates and supports triple bottom line principles

4. Manage information 4.1 Relevant documents and reports that could impact on work effectiveness and compliance are read and understood, and any implications discussed with appropriate persons

4.2 Documents, reports, data and numerical calculations are analysed, checked, evaluated and organised to meet customer and organisation requirements

4.3 Information is presented in a format appropriate for the audience

5. Participate in and facilitate work team activities

5.1 Provide feedback to team members to encourage, value and reward individual and team efforts and contributions

5.2 Actively encourage team members to participate in and take responsibility for team activities and communication processes

5.3 Give the team support to identify and resolve problems which impede its performance

5.4 Ensure own contribution to work team serves as a role model for others and enhances the organisation's image within the work group the organisation and with clients/customers

6. Plan work to be completed taking into consideration time,

resources and other constraints

6.1 Tasks to be done and relevant conditions are determined and work planned either for working autonomously or with others in a team environment

6.2 Work is planned for a given period managing resources, time and priorities

6.3 Contributions are made to organisation planning process as required to achieve service improvement

6.4 Changes in technology and work organisation are adapted to in a timely manner

7. Develop and maintain

personal competency

7.1 Professional development needs and goals are identified and reviewed on a

regular basis 7.2 Competency, authorisation and licensing requirements are clarified and

complied with 7.3 Professional development opportunities that reflect needs and goals are

sought and completed in an agreed upon timeframe



BSBOHS303B Contribute to OHS hazard identification and risk

assessment

This unit describes the performance outcomes, skills and knowledge required to contribute to

occupational health and safety (OHS) hazard identification and risk assessment to promote the

maintenance of OHS in the workplace. It includes determining relevant legislation and

contributing to any actions to ensure compliance with OHS legislation, codes and standards. No

licensing, legislative, regulatory or certification requirements apply to this unit at the time of

endorsement.


1. Contribute to

workplace hazard identification

1.1 Contribute to the selection of hazard identification tools, techniques,

processes and methods suitable for the workplace 1.2 Access hazard identification tools, techniques processes and methods to

identify hazards in the workplace 1.3 Recognise hazards in the workplace, report these hazards to designated

personnel and record them in accordance with workplace procedures 1.4 Provide information and assistance to persons conducting workplace

inspections or testing

2. Gather information about workplace hazards

2.1 Research, collect and record information about OHS hazards and their associated risks

2.2 Seek additional information, expertise or specialist advice from within or external to the workplace when limit of own skills and knowledge is reached

2.3 Conduct a workplace inspection to collect further information about OHS hazards and associated risks if required

2.4 Contribute to the support of OHS practitioners and employees in accessing workplace sources of information and data regarding hazard identification

2.5 Contribute to the support of OHS practitioners and employees accessing

external sources of information and data related to hazard identification, where required

3. Contribute to OHS risk assessment

3.1 Use appropriate risk assessment tools to contribute to risk assessment 3.2 Identify, categorise and assess risk factors as a contribution to overall risk

assessment 3.3 Seek additional information, expertise, or specialist advice to investigate the

likelihood and consequence of identified risks 3.4 Document outcomes of the risk assessment process in a risk register



FNSFMB501A Settle application and loan arrangements in the

finance/mortgage broking industry

This unit describes the performance outcomes, skills and knowledge required to settle

applications and loan arrangements for debt finance and undertaking the final arrangements to

secure and complete the lending transaction for a client applying for a mortgage or related

finance. This unit may apply to job roles subject to licensing, legislative, regulatory or

certification requirements so Commonwealth, State or Territory requirements should be

confirmed with the relevant body.


1. Prepare for

settlement

1.1 All pre-settlement conditions of finance approval are confirmed with

lender providing funds and the various parties to settlement are communicated with to confirm that documentation and any other settlement issues are in order

1.2 In the case of a second mortgage advance, confirmation is obtained that prior mortgagee has consented to the subsequent mortgage

1.3 Documents are checked to ensure they are correctly executed, witnessed and dated before sending to approving personnel

2. Register securities 2.1 Loan approval is checked for conditions relating to the taking of security 2.2 Party acting for the lender is instructed to liaise with all parties to the

settlement and attend settlement 2.3 Securities are registered and stamped in accordance with lender's

procedures and relevant legislation with all security actions taken confirmed as correct and complete

3. Arrange for the disbursement of funds

3.1 Drawdown of the funds is arranged by the lender or solicitor acting for the lender

3.2 Funds are disbursed in accordance with the requirements of loan approval and instructions received from the client

3.3 Relevant client correspondence is activated to advise client of disbursement of funds, date of settlement, manner of disbursement and other relevant details



FNSINC402A Develop and maintain in-depth knowledge of products

and services used by an organisation or sector

This unit describes the performance outcomes, skills and knowledge required to develop and

maintain an in-depth knowledge of the financial products and services provided by an

organisation, or those an organisation uses, and how they may be applied to customer needs.

No licensing, legislative, regulatory or certification requirements apply to this unit at the time

of endorsement.


1. Identify the products and services the organisation uses

1.1 Products and services used by an organisation or sector are identified and the purpose of each determined

1.2 The characteristics of products and services are identified and their strengths, weaknesses, terms, and conditions understood so they can be clearly communicated to customers where applicable

1.3 The organisation's promotional strategy for products and services are accessed and applied in business activities

2. Identify compliance implications of product

2.1 Compliance implications are established and documented 2.2 Customer is provided with all necessary information and documentation as

per compliance requirements

3. Determine the appropriate users for products and services

3.1 The function of each product and service and the customer needs it satisfies are identified and documented and the customer characteristics that best suit each product determined

3.2 The products and services used by the organisation or sector are compared with the products of competitors as a basis for selecting the most effective approach to matching products to customer needs

3.3 Approaches to selling the products and services in a competitive marketplace are evaluated and effective approaches to meeting customer needs determined

4. Maintain product knowledge

4.1 Relevant products and services are reviewed regularly and any changes to terms and conditions identified and applied in daily work

4.2 Systems for keeping up with changes and maintaining up-to-date knowledge about relevant products and services are put in place and used

4.3 Emerging trends affecting the financial industry are continuously reviewed

and applied to product and service knowledge



FNSFMK505A Comply with financial services legislation and industry

codes of practice


1. Identify and apply organisational requirements of legal

principles and regulatory obligations

1.1. Source documents for legislation, regulations and policies relevant to the provision of financial products and services are sourced and accessed

1.2. Key legal principles and organisational implications relating to the provision

of financial products and services are interpreted and analysed 1.3. The organisational requirements of these documents and their impact on

work practices are identified in terms of procedural requirements 1.4. Procedural requirements relating to operational aspects of laws and

regulations and codes of practice are executed in line with organisational policy

1.5. Role authorities and restrictions as identified in position profiles are complied with

1.6. Internal monitoring/audit program is implemented according to organisational and role requirements

1.7. Mechanism is established to ensure currency of regulatory literature is maintained

2. Identify changes and implications of laws, regulations, rules and circulars

2.1 Changed legislation, regulations and policies are identified and accessed in a timely manner and communicated in accordance with organisational policy

2.2. Operational procedures are reviewed to accurately reflect changes to regulation and legislation

2.3. Implications for products and services are identified and changes implemented in accordance with client, legislative and organisational requirements

3. Comply with any

relevant industry or professional codes

3.1. Relevant industry codes of practice are sourced, accessed and applied to

own work in accordance with organisational requirements 3.2. Key principles and responsibilities are interpreted in accordance with industry

codes of practice with own interpretation and application of industry codes of practice confirmed and clarified as required with relevant persons

3.3. Impact of codes of practice on work practices is understood and implemented

4. Maintain statutory records

4.1. Relevant records are maintained and copies of any relevant agreements kept on file

4.2. Evidence of current authorisation, training and relevant licences are maintained in accordance with organisational, legal and regulatory requirements



FNSPRM603A Grow the practice

This unit describes the performance outcomes, skills and knowledge required to promote and

grow a financial practice. It requires the application of marketing skills and the use of market

intelligence to develop and implement practice promotion and growth plans. This unit may

apply to job roles subject to licensing, legislative, regulatory or certification requirements so

Commonwealth, State or Territory requirements should be confirmed with the relevant body.


1. Develop marketing plan for the practice

1.1 The practice vision statement objectives are developed or reviewed 1.2 Target markets are identified or refined based on research and experience 1.3 Market research data are obtained and a competitor analysis developed 1.4 The practice market position is developed or reviewed based on the research

findings and analysis

2. Develop practice promotion plans

2.1 Practice brand is developed and the benefits of the practice, practice products and services are identified

2.2 Appropriate promotion tools are selected or developed as required

3. Develop practice growth plans

3.1 Plans to add new clients and increase yield per existing client are developed 3.2 Proposed plans are ranked according to agreed criteria and an action plan to

implement the top ranked plans is developed and agreed 3.3 Practice work practices are reviewed to ensure they support growth plans

4. Implement and monitor plan

4.1 Implementation plan is developed in consultation with all relevant stakeholders

4.2 Indicators of success of the plan are agreed and implementation is monitored against agreed indicators

4.3 Implementation is adjusted as required to meet objectives



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