Explain the nature of risk score and risk profile

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Jasmine and Matthew, both aged 42, are looking to create wealth through margin lending. They both work full-time and save $10,000 per annum. They own their home worth $980,000, have $50,000 sitting in an online account and have MySuper funds totalling $100,000.

Required:

a. Explain to Jasmine and Matthew how margin lending works.

b. Explain 2 compliance issues associated with recommending margin lending.

c. During a Fact Finder process, the client Risk Score and Risk Profile is identified. Explain the nature of the Risk Score and Risk Profile and critique how margin lending and MySuper would be related.

Reference no: EM132714240

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